New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-18
6ndnfinI.
The Financial World.

q
whole it closed yesterday little of from the
level of the week before. Much disappointment
was felt because It failed TO advance on the
passage Of the Currency Bill by the Senate the
news Of which was simultaneous with better
foreign advices. But to the latter. war news
has failed to exert any influence one way or an
other; temporary successes or defeats Of the
British forces being now accepted both here
and In London. merely as incidents OF a contest
which will go until the armies OF one side or
the other are battered to pieces; just as f. was
IN the Civil War here. AS to the passage OF the
Currency Bill. II must be borne in mind that
the market advanced in anticipation OF It's pas
sage. II is pointed out that the emphatic ex-
preston OF the Senate in favor OF the gold
standard. which Il refused to endorse a year or
so ago. marks step forward Of far reaching i'm
pcrtance TO the countrys finances II does At
the same time. however. it does more than
mark. or embody in legislation. the growth OF
public opinion. The public opinion OF the coun-
try expressed in the last Presidential cleo
ton; and the vote In the Senate the past week
is simply the public evidence that the forces OF
opposition have been melting away since tbs
actual fight was made. The funding features OF
the bill. which are urged as bull argument be-
cause Of the contemplated increase in currency
may be very greatly changed In conference
committee. 1t is too early to bank on them be-
fore they have been put through that crucible
The market might have stiffened up the lat
ter part Of the week but for the over Third
Avenue affairs and fears Of bad bank state
ment Technically. the latter was bad IN show
ing another decrease in the surplus reserve and
another big increase in loans. which now aggre-
gate Sa4 100000 increase in two weeks; never
theess. call money rules about ? to 2-s per cent.
and time money Az to per cent Bankers say
operations. but 10 mercantile borrowings.
trade is as active as ever and the promise OF
Spring business is all that could be desired The
surplus reserve. by yesterdays decrease, is
brought down 10 $24O0O.OOO. or about $1,000
900 less than a year ago 1t is enough for all
present needs.
The Third Avenue business is rather serious.
the company owes some S1TOOOOOO TO IT'S
secured creditors. and has unsecured creditors
also How much it owes the latter is matter OF
conjecture. In last weeks article 1t was noted
that dispute had arisen between the people
who were to advance the money to finance the
company and the people who wanted the money
advanced. 1t was assumed on general principles
that the dispute would end by the people who
needed the money yielding to those who had it
to lend Very Unexpectedly. it was abruptly an
nounced that Kuhn. Loeb & Co had withdrawn
from the syndicate; an announcement which
Immediately after the Third Avenue ii
reCtors declared a quarterly dividend on the
stock. This extraordinary proceedng-axtraor-
binary in view of the circumstances Of the COM
pany-has been aptly compared to a mendicant
ordering dinner at Delmonicos. while he holds
out his hand for aims. Why the banking firm
referred to withdrew so deCisiveIy is variously
conjectured. The bankers themselves say moth
ing. Only this may be inferred-when people
asked to fill empty jug they don't want
the other fellows to hold on 10 the handle.
The action Of Kuhn Loeb & Co. naturally
caused commotion- The big creditors Of the
company thought it necessary TO get together
for mutual protection. and it looks as II there
might be interesting developments Meanwhile
rumors are getting around about a construction
company which has been bleeding the Third
Avenue corporation, about a mix up OF politics
and contracts. and altogether such a delightful
state of affairs as usually land concern in a
financial bog. The outcome Of the affair viii
be watched with much interest. II house
thorough and careful Kuhn. Loeb & Co
washes it's hands Of the business. who will take
it up after them?
The B. & o. directors have declared the first
half yearly dividend. 2 per cent, on the pre-
ferred stock 1t calls for 81. 100000, and the
net earnings for the six months were about
/ So. 5000 or nearly three times the dividend
In connection with B. & o. matters. it may be
interesting to note that most sagaciOus
fnanciers and railroad managers say that for
the next ten years the soft coal properties will
be the things The United States viii become
the largest exporter of soft coal in the world
At this time il is a physical impOssbility TO
meet both the domestic and the foreign demand
for this coal. Every railroad in the country
which is carrier of bituminous COAL is carry
ing it to the utmost limit of it's capacity, and
there is no let UP in sight.
Now it will be seen that such a condition Of
affairs equally affects rot only the big railroads
whose mileage is in the thousands Of miles; but
the small roads also, whose mileage is in the
hundreds Therefore 1t would be we'll 10 keep
an eye on the cOngerie of small coal roads IN
Ohio which are now so gathered under concen-
trated control that the old time mutually de-
structive fights are impossible. These roads
have had a hard time in the past, what with
their fighting and the depressed conditions OF
the bituminOus trade; bur now. when shrewd
and conservative bankers tell you to bank for
the future on the soft coal properties one may
understand that a change, and a permanent
change has come. Among the big roads which
have a great traffic in this coal may be men
toned the b & o. and the Chesapeake & Ohio;
1t is also big item in the tonnage OF the Penn
sylvania: the Norfolk and Western is sort
coal road among the Ohio roads. the Wheeling
and Lake Erie may be specially mentioned and
increasing earnings.
/ AS said above. IL is impossible at this time TO
fill foreign orders for coal as we'll meet the
domestic demand. The export trade IS growing
so surely that it will fill the gap made when the
( domestic demand stacks down. But for this
year 1900. the coal. iron and steel trades viii
bs moro acttve and DrOfits will be larger, than