The sun., 1899-07-06
FINANCIAL AND COMMERCIAL.
WEDNESDAY,, July 8.

Inc country mas DeCOUe 30 TlCn anu II 80 Wel
supplied with lquid capital. particularly with
gold, that transfers OF large amounts are mads
from this city to the interior. into the Treasury
and even abroad without seriously disturbing
the money market The reasons for these
transfers are we'll known. fact that OF itself
prevents apprehension Of any unpleasant re-
suits from them. Practically every industry Is
beinR conducted upon profitable basis and tho
most i'm portant Of oil. namely. that OF trans
portation. 10 enjoying period OF extraordinary
prosperity. While the agricultural stun-
tion 10 not an ideal one. It is becoming moro
patent every day as the crops approach
maturity that the yield OF staple products will
not be materially below the average ofprevious
years It is not surprising that from this
condition nj Affairs there should be
development OF tho first importance in
tho history OF American banking. namely,
the financing In this country OF the
debt OF another nation. The appearance OF an
American banking house at the head OF a SYM
dcste that has undertaken to refund at re-
duced rate OF interest the $1O8.0OO.0OO OF
bonds Of the republic OF Mexico is a logical
sequence in the rapid progress American bank
ing has made during the last quarter OF
century.
The contract for the conversion OF the Mexi-
can loans that Messrs. j. 7. Morgan x Co. and
their associates in Berlin and London have
made 10 significant In many respects other
than that already noted. In the first place the
new bonds are to be distinctly sterling or gold
issue, This shows that our sister republic. yield
ing perhaps unconsciously to the experience of
her neighbor In dealing with silver. is begin
ming to appreciate the desirability Of placing
her monetary system upon the gold basis.
That she will eventually do 50 need hardly be
predicted. The transaction is also significant
as indicating cordial relations between the
two republics. which. in spite OF the differ
ences In climate. races and methods. have
much In common. American capital has been
most potent In developing the resources OF
Mexico and 1t is a reasonable assumption that
more OF 1t will be invested beyond the Rio
Grande now that the southern republic
has taken q long stride forward in man
aging It's finances and at the same
time shown it's confidence In our bank
ers. methods and principles. The alliance
thus formed between the two nations Is as inn
portant and far reaching As the advent OF
American bankers in tho field OF international
financing.
A suggestion OF what may occur In the local
market for securities in consequence OF the
transaction referred to above was dscernible
to-day In a revival OF speculation in Mexican
Central securities at advancing prices. The
stock market as a whole was more active than It
has been for long time and the tone was strong
throughout The absorption OF the Boston and
Albany Railroad by the New York Central Com
pany suggests any number OF combinations In
the railroad world. many OF which have been
the subject OF rumor at various times since the
West Shore road was taken over by the system
that II attempted to rival The heaviest dealings
were in Brooklyn Rapid Transit and Sugar
Refining. and each enjoyed net advance of
3k q cent. The Street is beginning to realize
that som ething Is taking place in the sugar re-
fnng industry. yet 80 quietly and secretly
that the public cannot obtain an inkling OF the
facts. The manner in which the management
OF the Brooklyn Rapid Transit Company cut
the ground from under those who were hoping
to inctc a strike among its employees was
bitter disappointment to operators who have
been seeking to depress the price OF Rapid
Transit stock The Indications nre that SINH
lar efforts In the case fthe Metropolitan Street
Railway Company will result in an equally dis
NAL failure.
In the railway list Atchson preferred and St.
Paul were the leaders. Minor yet noteworthy
movements may be noted In the anthracite
coal shares. In Southern Railway pre-
ferred, Erie I'd preferred, Illinois Central
and Wisconsin Central new common and
preferred. The larger dealings In the
last named. at advancing prices. may be
explained to an extent by the fact that the re-
organization OF the company is now nearing
completion The property will be sold in fore
closure proceedings on Friday OF this week. and
the opportunity to participate in the reorgani-
Eation will expire within a few days. The
status OF the new securities may be estimated
TO an extent by the fact that in the plan OF
reorganization 1t is computed that the new
company will at once earn something over
y cent. upon its common stock
or the Industrial stocks American Tobacco
UadS Sugar Raining in rpSDppt 70 aCtiyitV
and was also exceptionally strong. Other fea-
tures in this group were American Steel
and Wire, Continental Tobacco. Peoples
Gas. Tennessee Coal and Iron. Gen
eral Electric and International Paper
1t the tobacco stocks tho short in
terest appeared to be chiefly responsible for
the advance. Rumors Of an impending deal OF
some sort stimulated buying OF Tennessee Coal
and Iron. The condition OF the iron industry
which is every day becoming moro profitable
owing to tho completion OF contracts
made at lower prices than prevailed to-
day and the beginning of work upon orders al
the advances that have taken place during the
last few months. is beginning to be cited again
by the Street as reason for revival OF the de-
mand for securities based upon iron and stee
enterprises. Attempts to prevent tho payment
ofdvdends upon some Of these securities have
ceased to have any effect upon the market fol-
them, Tor IL 10 very benSlDy aTRueu tnat tne
money which the companies would like to dis
tribute among their shareholders at this time
will be held for their benefit until the close Of
the respective fiscal years. when it can be paid
out despite the efforts OF ltigious speculators
All things considered. the money market
was comparatively easy to-day. The highest
rate reported was o = cent. and as soon az
the demand slackened late in the day
the rate dropped to 2 n cent. While
much OF the trading in stocks was
OF a professional character there was
an unmistakable increase in tho volume o
commission business. London showed consid
cradle interest In tho market. taking through
arbitrage houses about 10000 shares on bal
ance. Moderate taking OF profits from time tc
time gave the market healthy appearance
particularly as all offerings were absorbed
without much recession in prices. The CLOSING
was In the main strong
Rev York stock ExchauKe-Sales July 3