New-York tribune., 1899-07-09
financial.
The Financial World.

| how the money market would work They Z,
any one, ought TO know all about that Va,
when yesterdays bank statement appeare.
with the surplus reserve almost swept awsv
with loans sti1 increasing and deposits decreas-
ing, and with ten millions loss in cash-it in.
evitably suggested serious doubt whether the
market could go on advancing when such ad
vance must tend more and more to deplete thu
already attenuated bank reserves. II looks a.
| If we are walking straight into money squeeze
Perhaps we are not; and perhaps the reserve.
| will begin TO fill up again from this time on
| But they won't do 1t with rush. and the fact
remains anyhow that the surplus reserve Is now
| only 100000; while the Same week last year
II was over $J3OOOOOO
| Naturally the appearance OF the statement
! gave the market a chill 1t may chill 1t little
more 1t had been strong and lively enough
previously, different sets OF stocks having been
advanced successfully. Realizatlons in one set
were accompanied by buying in others, after
the regular fashion OF a bull market The ofigi.
nal impulse having been given by the New York
Centrars requirement Of the Boston and AL.
bany the Street had that company buying a
new lot Of railroads every day. including the
Pennsylvania system. This story thought
serious enough 10 bring out prompt denlals
(Which the Boston ana Albany dUdlr ala nOt(.
The basis for 1t seems to be some new rate ar
rangements between the two trunk line sys-
TENS The Manhattan was the latest addition
TO the purchases Of the New York Central. No
one was easily able to see what the Central
could do with Manhattan; but some pretty
shrewd people think that the market movements
Of Manhattan stock indicate that Vanderbilt In
terests have acquired the Gould holdings OF It,
/ l. l.
be only the first step to union with the Metro
pclitan company which is a natural alliance.
Union with New York Central would not be-
AS dealings in some Of the big stocks quieted
down the smaller stocks had an innings Chesa-
peake and Ohio went up sharply. three Cs. aso
these being allied properties, with dividends in
prospect; the moribund Nickel Plates, which
are the disreputable members Of the Vanderbilt
family began to show signs Of life; Texas Pa
cifc advanced, and also number Of specialtes
of more or less doubtful standing, as Tennessee
Coal. Lastly, sudden and large buying de-
yeloped in the Atchison stocks
It must be very agreeable to outsiders who
got left with Atchison preferred above 90 In the
spring BOOM to see the stock get above that
figure again 1t did not seem likely TO get there
very soon, after the directors had put the diyi-
This column has a tolerably consistent record
on the bull side Of Atchison having started
with the first mortgage As in the SOS, the ad-
tustments in the 5Os, and the preferred stock
IN the 4Os But when 1t comes TO bulling the
nreferred stock above 90, on present conditions
It seems like getting away from safe ground
However, the Flower people carried II UP 10 "
before. They are handling the stock now' talk
nd IN
week. If the preferred stock has any legitimate
ground for such an advance, then II is certain
the adjustment As have no business 10 remain
down at S. They ought to be ten points higher.
Whether the market will get higher the coming
week or sag off into a waiting dulness. VIII
nrobably depend much upon the workings OF
tho money market With bank reserves Where
they are. as compared with the same time last
,ear the situation looks like getting ticklish.
And II ts to be considered that the bringing OUT
~ the Mexican loan is not great ways OF. u
will he the first foreign Government loan ever
brought out here. Being a refunding Ioan anu
the bonds 10 be refunded being held in Europe
Il follows that such OF the new bonds as may
he absorbed by this market necessitate pay
mont TO the other side. Hence II any consul
orable amounts are taken here some disturb
ance of the money market may result
This however could be only temporary ei-
.act A nermanent and important erect VIII
he 10 draw public attention 10 the renarKao'e
strides IN prosperity which Mexico has made IN
the past twenty years, but more particularly :"
the last decade. She owes this NANNY 10 'he
wise and firm rule OF President Diaz VINO mas
been called the Mexican Bismark he pecat''e
President in 1877; President he has rsmai"eu
ever since; and the Mexico of to-day compateu
with what IL was is the difference between
darkness and light
This Rismark of his race that what the
country needed most was peace ana staoiiIH'
He has secured It primarily through the ral'toad
and the telegraph. Before the advent OF ei'ne''
each Mexican province was little power III ~
self: isolated by lack Of communication lro"
,ba Central Government. A revolutionary gem
eral might organize and drill a military force
for three months. and then pronounce oeio'e
the Central Government knew anything ABOUT
n Pronunciamentos were easy under such q"
cumstances. But all this changed when the
country became scanned with railroads anu
netted with telegraph lines. supplemented ps
good military roads. With rapid intercommum-
cation the arm OF the Federal Government "Hs
heightened Therefore the liberal Government
subsidies by which the building OF railroads has
been encouraged, was a political as mueh as ai
economic measure. Mexico has enjoyed peace
she never before knew and under gFaau"'
and therefore safe reform In methods OF lana
ton and, civil administration; by encourase''en'
Of education and by public improvements sns
has made forward strides which are astonish-
ing.
SHOW II to US in figures is the customary
demand Of the cool Yankee when he hears any
thing like this Here are some. Mexico Is q"
exporting country-always was These are Hs
ures Of her recent growth in exports the Vaius'
being IN silver dollars:
Ia 1855 they were valued a! saS'SS9SSoo saS'SSo
H. iso0 90 OGUU0
L. $500 ODo0O