New-York tribune., 1901-09-01
GnnnriaI.
The Financial World.

Insignificant for the general list but for tb-a.
or four stocks there were differences both v.v,
OF from two TO three points. The Fries war.
gamers. AS a whole the market NAV he s,,,
TO have halted after its previous two weak.,
rise. and passed into a waiting stage
In relation TO the Eries the rumor gained 81.
culation that the July statement would ha vs-..
favorable. not only showing satisfactory gros,
increase. but such economies in operation .,
would make the net still better. However tbi,
may be. 1t is certain that the Erie issues wara
about the most active on the list. and each
OF the three classes Of stock made gain 7,
the claims made for the new management q,
the road prove correct. then the first and sao
ond preferred stocks must within a wear -
eighteen months. be both per cent divjsand
payers. and will sell on that basis As tn tba
common stock. II may or may not sell I'd IN IN
in that period We do not do more than cav
that friends of the property claim that if vrI
and they advise those who buy the stock 70
hold it for that figure. Probably 1t would ba
well. however. not to wait for the last ouarta-
or half. That the stock will gain once more fts
old-ttme place as one of the most popular trad
ing stocks on the list, is more than probabla.
in fact. it is getting there now. In the old time.
Erie used TO be the ready money of the marker
one could buy and sell large amounts OF IL n.
every eighth and quarter every day in the veal,
Consequently. all the floor traders and small
SPECTATORS were always ready to take a avsr
in 1t. as they could get in and out quickly. with
less risk than in almost any other stock That
is the way il will be again.
There was no announcement Of the new
scheme for the unifcation Of the Northern Pa
cihc. Great Northern and Burlington which n
was rumored last week might be brought on,
f,
till the money situation is clearer in respAct
to the annual drain for the crop movement The
report is that new company will be formed
which will take over the stocks OF the COM
panies named. exchaning its own for them II
will be a pretty big financial operation, what
ever form it takes; and easy money conditions
would seem to be one of the prime necessities
to the time for launching it,
There is some difference Of opinion on this
money business. A prominent Chicago banker
is quoted predicting there will be no higher
than or per cent rate this FaIl and soms
New-York bankers take the same view. Others
however. whose opinion carries weight, are dis
creetly silent. Yesterdays bank statement might
give them reason for hesitation. The surplus
reserve was cut down to trif1e under L mill
ions. by a decrease for the week Of S6.22SO00
In the same week last year, the surplus was
over % millions II at the beginning OF the
crop movement the surplus is down TO u mill
ions there may be trouble before the demands
of the West are fully satisfied. The idea that
the Western reserves of money are so large
that the East will not be largely called upon. ia
exploded. Those reserves are kept mainly IN
the East, and go out when the time comes. Il
probably resolves itself down TO a question Of
how high rate for money is necessary to draw
it from abroad.
1t is 70 be specially noted, as bearing on the
currency movement and the stock market also,
that there is no let up in the expansion OF gen
eral trade Notwithstanding the great damage
done by the drouth, The bank exchanges FOR
August show a gain OF 36 per cent over tns
same week last year. according to "Dun's Re-
view" Outside OF New-York. says sraa-
streets" cIearings are 20 per cent larger than
last year. There is no questioning the meaning
OF such figures Whatever may be coming later
the expansive force Of general trade now runs
strong; and the railroad earnings must conttnus
70 reflect it. More money will be needed in the
West than would be the case If business had
slackened down on the crop damage, and the
money market here may work closer as con-
sequence. On the other hand. more active eusi-
ness means larger volume of traffic and larger
earnings
As the heightening Of interest rates could, OF
course. be only temporary. it might De argued
that the general situation was bullish oecauso
business was still expanding. Undoubtedly 'nis
would be the case If there had been no drou'h
damage: but the uncertainty OF the siInatloh
lies in Just this fact. and the hesitant tons o.
the stock market interprets 1t. There Is a rush
movement OF everything for the moment ou'
when this is over will not the great losses tnat
important sections Of the West have suffered
make themselves felt. and a general shrinKass
in the volume Of trade result?
The question is impossible OF answer now
but by the end OF September ii will not BY
that time it will be seen how much tne 0s
wheat crop can do in the way OF onSeluHs
other losses The net result may be some'hhs
which in relation to the stock market - ue
scrtbed as spotty There may be a shrtnkage
In trade in the sections worst hurt by the urOu'A
indeed. there must be; and expansion IN
the northern sections. where the wheat crop -
the nnainstay For Kansas. it suffces to point
ont that the railroads are making special 10"
rates 10 carry corn in for stock feeding pur
noses This is the state which is a corn eA
porter.
While the market generally is dull seVei'i
snecialties have been going advancing. aniohs
them Lake Erie & Western and the N'A''
Plate stocks. An excellent annual report ~
the latter road is said to be the cause OF tne az
vance good report is also said 20 oe iOt'
coming on Denver. which road is now con'lo,i.-
by the Missouri Pacific. The latter ana o'i-.
Gould issues. have been notably strong I
wabashes in particular. The Southern So
and Louisville and Nashville promise "e"'
thew are out of the region of drouth damase-
There is nothing new about the gas S s'O'N
The new financial scheme OF the ConSoNua
Gas Company is still awaited. more OF -
patiently Directors of the Iieoples Gas D'
not make public their action in authori1ils