New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-01-21
HnanriaL-
The Financial World.

nate Tor the street LndL Lne otdtc AAA7t OOul-
pany was not turned inside out in the week OF
the big break In December. because the effect
then could not but have been OF a very serious
character. It might have happened that the
crash would have been severe that the
man short Of stocks would have found himself
long OF them, by the inability OF lenders 20
take back the stocks they were lending. Luck
ly the affair came after the big liquidation.
and so passed comparatively harrnlessly- IL
hurt the market for day or two the first part
Of the week; but later. there was recovery. and
almost buOyancy on Friday. in anticipation
of the Saturday bank statement This turned
out to be fully as good as expected. There was
a gain Of over $11.0O0000 IN cash; and in
crease in the surplus reserve OF nearly $500
COO which brings the surplus up 10 trifie over
$24 900 After the statement came out. the
usual realizing by the room traders sent prices
off few fractions
1t Is unnecessary TO discuss the trust COM
pany matter here. The newspapers have al
ready done II very thoroughly. Those who know
President Johnson cannot but experience feel
ing of regret that he should have allowed him
self to drift into such tangle, for he Is one
OF the best fellows in the world. and accepted
charge Of the company reluctantly. after much
persuasion by his associates It would seem.
however. that an easy going. good natured fell
low is out of place at the head Of a big money
hard sort of person. who can say no emphati-
calIy. more particularly TO his friends
The December liquidation having cleared the
market largely Of weak accounts. the Street
soon recovered from it's alarm and regarded with
more satisfaction the rates for money, which
tended more and more toward ease This
however does not mean that it is easier to Dor
row doubtful collateral than it was. On the
contrary, the banks are trile more inclined
bafO 70 md digCrfmfuata-
that there is danger OF the market being led
in another upward movement by the wilder
class Of speculatives. 1t Is in the bond market
where there appears at this time to be the safer
sort of purchases. Many Of the newer Issues
of bonds went off considerably while money
was working closer during the closing months OF
the year; and so did the second class Of older
bonds. These win work up again. They are
doing so now There are five to ten points in
some of these issues.
The awarding OF the contract for building the
tunnel was apparently without effect on the
traction stocks, though there had been much
talk the other way. Metropolitan did, IT IS true.
have some rapid fluctuations within a five
six point range; but this due rather more
to the trust company affair than the projected
tunnel. The latter is three years away at the
earliest; and that is age in Wall Street Fur
thermore. while the tunnel may possibly. though
not certainly. hurt Manhattan. it can do only
good to surface roads. since its purpose is TO
carry long distance riders, which IL does not
pay the surface roads to carry. In so far this
through route 70 Harlem builds up the terri
tory above the river, 1t will help the surface
roads there. and so the Third Avenue Com
pany. which has an extensive system in that
locality.
This company assuredly needs help It was
noted last week that its stock was dribbling
on the market. 1t has dribbled more since the
publication OF its report. showing a $1TOO0OOO
unfunded debt. This. however is not the real
trouble with the company. What pinches it
is the necessity for raising more money TO COM
plete work now in progress. It Is stated on au-
thority that OF the strongest Of our large
banking houses has undertaken to finance the
concern. but the final negotiations still await
the report Of the expert examiners. They are
now at work A high authority says there IS
no trouble with the Third Avenue Company
except that 1t has been very much muddled IN
it's financial management. These mistakes Will
have to be rectihed- To the average outsider.
it looks very much as II the rectifcation OF
these mistakes. will cost the Third Avenue
stockholders their dividends for a time. Bad
financial management is apt to be costly
Brooklyn Traction has been rather strong. It
was noted that when the stock got TO IS II
found considerable support The election OF
directors takes place on the 18th There viii be
no financial statement made. it is stated The
company sefiscal year ends with June, and only
an annual report will be issued.
The performances Of Sugar stock attract con-
siderable attention. but the traders are on the
average rather afraid Of 1t round these prices
It has had considerable drop. and Sugar has
so frequently demonstrated fits power Of rapid
advance from about the presen. level that 1t
seems dangerous to sell short On the other
hand, there is a strong impression that Mr.
Havemeyer's utterances about future dividends
mean business, and that the next dividend will
be at some other rate than II per cent: in which
case the stock is bound to go down to a figure
before the reduction is announced But. as said
Mr.. Havemeyer's control. and it is blind guess
ing what he intends to do.
The temporary fluctuations OF the market
seem to be governed almost wholly by war news.
which is almost the only topic OF discussion.
Very much Of this is purely sentimental The
financial world has adjusted itself to the war
and TO the prospect OF its continuance. The
/ question OF how much the British Government
would have to borrow was one which for a time
made the money market uneasy: but it seems
| to be understood among the bankers that no
/ large loans will be made until summer;
and meantime money is flowing back 20 the
| financial centres. The Bank OF England re-
| duced its rate on Thursday from TO A per
cent. The sentiment In the Street Is that II the
present military movements of the British army
are successful. the market viii go up. and most
/ likely IL will In case OF another bad defeat
/ there will be SLUMP In either event. however