New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-08-20
fna nfiai.
The Financial World.

w. what the condition OF the corn and spring
wheat crops was at a time when that condition
would indicate the final yield Neither OF these
things could be known with any degree Of GER
tanty till after the middle OF August. although
the indications were favorable right along. Il
seems to be we'll assured now that the West will
draw but lightly the East for the crop move
ment and that while there is no more than An
average crop Of spring wheat there is the GER
talnty of a phenomenay large crop OF corn.
Under these circumstances. the securities mar.
ket has logically developed strength and activ-
ity during the past week. on both foreign and
domestic buying which has gone to bonds and
stocks alike.
The trading shows a broadening tendency dua
to increased commission house business: which
is public business; and while the second class Of
stocks were recently the most active. the heavy
weight dividend payers have come To the front
as leaders In the past day or two. The market
closed yesterday in such form as TO indicate a
strong opening tomorrow; and the prospects
are for a week OF good business.
The bank statement showed no material
changes from the previous week. The surplus
reserve stands at S15,000000. II the West
ern demands prove to be light as predicted
this surplus will not greatly change until the
time comes for It to increase. The smallness OF
the Western demands this year proves that the
distribution Of money throughout the country Is
more even than at any previous time in our
financial history. The two largest Chicago banks
have an aggregate OF deposits three times larger
than they had at this three years ago.
One OF our city banks which supplies money TO
move cotton, received from it's corresponding
Texas banks the other day in answer 10 It's GUS
tomary inquiries. replies 10 the effect that they
had enough money for all needs, and would not
have to draw II this be true Of the cotton re-
gion 1t must be true also Of the grain sectiona
II is a very gratifying state Of affairs. Also a
practical correction Of a good many financial
theories-which is a good thing to have in view
Of next year.
While all sections Of the country are similarly
crcumstanced II is natural that Southern
stocks Western. Southwestern. and Northwest
ern stocks should all advance; and therefore II
does not need that consolidation schemes should
be mooted as reasons for advances In LOUISVILLE
& Nashville and Southern Railroad. The earn
ings Of the roads are a sufficient and more SUBJ
stantial reason the same for st. Paul, Burling-
ton or Rock Island. In respect TO the latter. an
increase in the next dividend is coming TO be re-
garded as a certainty.
II was mentioned a short time ago that the
rich men who are interested in Atchison were
buying the preferred on the outlook for business
in connection with the Kansas corn crop. Ac-
cordng to all accounts II will leave far behind
any previous record of the State. and II may be
regarded now being as good as harvested
Calculations Of the number OF trains 1t would
require to carry this crop run up into figures
which sound wild OF course such calculations
are on the theoretical basis OF every bushe eav-
ing the farm. which 1t does not. What VIII
leave. however. will keep the Kansas roads busy
enough. Altogether it seems as II this was
corn year. and all the corn carrying roads ought
to make big money
Those who noted in this column the sugges-
ton that Southern Pacific would prove GOOD
nurchase. have no reason 10 regret acting on the
suggestion If they did act The company's
per cent bonds look as If they might go to 80 or
So on this trip. Pacific coast properties have
great future-and a present also which no one
need complain about.
Here are some earnings OF the Pacific Coast
Company the Oregon Improvement OF old
times). In the first seven months of its fiscal
wear il has earned the years interest on its hrst
mortgage bonds the dividend for the year on
tho first nreferred stock dividend for the year
on the second preferred, and per cent on the
common stock with a small surplus over The
five remaining months are the companys big
gest for business It will earn, 1t is estimated .
nor cent on the common. There are some deyel-
opments in connection with the company which
NAV make it's securities a good deal more active
than they have been.
A sale Of A. large block OF B. o. preferred
stock to a syndicate was reported during the
week. There is nothing new in respect 10 the
company; but its earnings after running poorly
for few weeks. are now picking up again IN d
very satisfactory way. Some OF the larger hoiu-
ers OF the preferred stock are predicting ~ TOT
it-but Il would not be safe 10 bet on ~ next
week.
The fact cannot fail to be impressed on the
mind NJ the most casual reader OF the papers
that the price Of iron is still advancing. H. ac-
cording 10 the accepted dictum OF finance. II Is
safe to buy stocks while this is the situaton' II
should be safer yet to buy bonds with the cas-
ing of the money market. the market Tor pohos
has improved: and people who hesitate 10 take
chances on stocks, may safely buy the secoho
class OF bonds Those OF the first class are as
rule too high to afford room for much more
advance.
Some rapid fluctuations in the quotations TOT
the stock and bonds Of the Kansas CITY Plus
burg and Gulf (called for short. the Kangaroo
preceded the publication OF a reorgahizdUo"
scheme by what is called the Philadelphia COM
mittee This committee represents pra'ucd'S
the old interests of the road under "hich II
went into bankruptcy. As published. the scheme
is vague 1t gives only the proposed Distribution
OF the new securities; with no report OF past
earnings. and no estimate Of future. II Is Wen
known. however, in the higher circles OF wa"
Street. that a thorough examination OF the
property was recently made. resulting IN 'he
discovery that the net earnings OF the property
for the last fiscal year after every liberal allow
| ance had been made. barely exceeded s4oooVV'
Now the remarkable part OF the proposed reor-
ganization scheme is that fixed charges OF Sofo'-
| 600 become Immediately operative under IT,