New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-10-29
financial.
The Financial World.


closed in way which gave every indication y,
further advance in prices the coming week Ts.
| Indications were correct The list generauv
with some notable exceptions-has advanced
and Yesterday after the surprise party given b.
the bank statement. it rushed up and closss
with a sort Of hurrah. Naturally. a lively OPEN
ing is anticipated for Monday morning Unles.
something untoward happens, there wil be such
an opening.
The surprise occasioned by tho bank statems,,
was because it showed an increase ~ nearly
81 100000 In the surplus reserve. whereas m.
experts had been figuring out a loss. II also
showed a decrease OF about 100000 n loans
whereas the rising stock market had created the
Impression that there would he an increase Tn.
experts were all al sea but tho rush 70 buy
stocks both for long and short account. was
immediate. II was another of tho many n.
stances Of the futility or trying 70 figure on,
what Will be shown by document made I'D N
the system that the bank statement is. r, you
try long enough. you get a free pass 20
lunatic asylum.
What does appear In the money situation a,
seen by leading bankers. l. that so Ions the
general trade Of the country continues a, IA
present volume and activity. per cent vi' 10
an easy rate in the money market when money
a little squeeze there. the rate will run un much
higher This IS situation which rather works
against the bond market, but In favor To-, stock
Because the higher cost Of money resulting from
/ industrial activity implies higher prices so-
most OF the things tho bondhoder has % buy
/ while his income from the bond remains IN.
! changed But SO far as he il a stockh0.der h
I is prospcctively at least better or since this
same Industrial activity promises increase u
dividends on his stocks
When first the bank reserves started 70 "a
down rapidly. month or so ago. and intere..
rates ran up. a shock was given 10 rho stock
market which frightened a great many pe9p!s
and seriously embarrassed some. This vas -
nected in the falling prices Il is about unisr-
stood now that the higher rates have come %
stay They Will 60 again only a. business
shrinks in volume. Consequently, the man who
IS selling lots OF goods at good prices under
stands that he VIII have 10 pay more TO- the man
who makes his profit in lending money
The market was strongly affected hy The str.k-
ing evidence given Of the industrial situation. n
the contract made ny the big railroad COM
panies for steel rails Tor next years delivery
This keeps the mills busy for next Year az prices
nearly twice as high they had 10 pay about,
year ago. This is not all proht 70 the mill,
however They have 20 pay more for everything
which enters into the cost or making he rails
on their side the railroads have ~ raise rates
for as their cost OF doing business Is raised
they must get more for what they 90. 70 keep
even II seems superfuous almost 20 mention
here the innumerable evidences ~ The enormous
industrial activity of the country AZ this tine
or OF the great rise in prices especially IN thoss
OF metals. They meet one Al every turn
- sfnn rlaf
however that trade conditions such as these ara
reflected: for they have actually been declining
for certain reasons not connected with prices q
material Il IS the railroad stocks which are al
vancing. The whole movement upward IS aimo'.
exclusively with them The business The roads
are doing IS only limited by their capacity ard
in this condition OF affairs. the Street having
got over It's first severe shock from mgA
money market. II prepared 10 see railroad soea
20 higher than they have yet gone
In the past week there was quite rush iorns
Southern railroad stocks. because Of the Big
earnings they reported. More dividends N
Southern preferred are looked for Il = claimed
that Louisville will sell near par before Erea'
while Atchison preferred is now nearly up %
the highest price It has at any time been l
calculate that this fiscal year said eains
banker. "Atchson Will have net earnings equa.
70 Dor cent on its preferred stock and per
cent on ,ts common" This comes from an emi-
nonrly conservative fnancicr. There has beer
renewal Of the best sort Of buying IN The Cni'n
Pacihcs The preferred is fixed + Per cent
stock. hence s. must he looked upon as TOP
price FOR II while money is considered easy at
per cent; but the common stock ought % ~ tna
SPECULATIVE purchase on dividend prospects
Mr. Sage talks Of a dividend soon on Missouri
Pacific and this IL not so extrayagant an eA'
pectation as II might have seemed year az.
The = per cent bonds Of the company are q1o"'
about o. They would seem 70 be worth p"
easily enough. ST. Louis Southwestern secono'
declined on the failure Of the company 20 pay
the full per cent for the hair year. Ihis vas
explained as being due to the terms 81 the mort
gage which requires the interest 10 be- earned il
the half year The next interest payment Il
claimed. will make up the full amount 90 pe'
cent As an evidence that prosperity is not con-
fined 20 the east e. may be noted thar the Pa
cifc Coast Company Cthe old q. II VIII ha''
net earnings for the year ending December q
S1,640 600. and Il requires only S1iopo % pay
interest and full dividends
Enormous transactions have taken place m iHs
Leather stocks and both common and rf'leffe'
have advanced, the former considerably. "
NAV he said that there seems something mo'
behind the deal IN these stocks than The terms
Of the plan of readjustment "a tentatively GIVE"
out by the directors committee.
Some surprise was expressed ar 'h' siieh-''
Of the London market In the face OF What iooN'
Ike serious news from the Transvaal Pronh'
nent hnancers however say the actual situa'
ton Is lust this-to-day the Boer IS The strong
est he ever will be- and the other man The WAX
EST, This situation must reverse itsef rs u'