New-York tribune., 1901-07-07
financial.
The Financial World.

If the Stock Exchange had been open yestA-.
day, the bank statement would have z,vo-
prices a set back The loss in surplus reserve
Of S3.212.0OO. bringing that fund down -
So,21l,OO would have made the average trade
regard as something more than temporary tb
rate OF 20 per cent for call loans which Wa.
recorded for short while on the day befora
the Exchange closed for the week The action
OF the Governing Committee in ordering thar
closing. has been criticised in some quarters
but 1t was as near case of necessity as could
we'll be. There was only one dissentient to the
vote requesting the governing body to reconsider
their previous refusal 10 close; and the ahnor-
NAL weather conditions seemed to dispose every
one to call halt 1t suffices TO point to the
insignificant amount OF business done between
Monday morning and Wednesdays close 10
show how little disposed people were to do any,
thing. There times when the best thing to
do is. IL possible. TO DO nothing
With the money market in the condition IL 4,
the safe way would seem TO be to let the stock
market rest quiet for while. There is also
considerable uncertainty about the corn crop.
which requires rain over a large area of the
belt to a good yield. No great damage
has been done SO far; and the chances are that
rains will come in time to secure at least full
average yield. Nevertheless. they have up to
this writing come in quantity only over a rather
limited area of 1t. and people who have special
interest in the stocks of roads 10 which the corn
output Is important. rot disposed at the
moment to add 10 their commitments on the
bull side
The chief point of interest in the market was
the steel stocks upon which the first dividends
were declared. About the dividend steel pre-
ferred there was. of course. no room for uncer-
tainty. seeing that the bylaws of the company
common. II was generally understood. as stated
here last week. that the dividend on this would
be at the rate OF per cent: and that was de-
clared. Why the directors should have failed to
state that il "a quarterly dividend" in
stead OF saying only that IL was "a dividend"
is not easy 10 divine. The mistake has been
corrected since, in the advertisements. The
omission had a bad effect On the stock. the
Street being in a somewhat pessimistic mood
at the time: and the prices cf both common
and preferred shaded Off In London however.
there was better information. and the stocks
have risen there since Exchange closed
The short statement given cut officially by
the corporation. that the earnings are in excess
of the dividends declared. has certain Morgan
tone about it-brief abrupt, and not conciia-
tory. 1t may have been dictated by Mr.. Morgan
himself. after he reached his office. He is salts
fed. you be II you want to. and il you are
not and clamor for detaiIs-why you will get
them when we are ready AS 20 the strike
among certain of the mills of the corporation. 1t
is probably not nearly serious as it looks.
At the hot season OF the year. strikes in the
metal trade epidemic. but it is very rare
that they last beyond the time necessary 10
make the annual repairs and get the plants in
condition for the next seasons work.
While the general market may be duh
or5 ~Or yybiI aud DrObahlV will be.
there is nothing in the situation respects rail-
road traffic. the coal trade. and other great in
dustr.es. which gives other than cause for salts
faction. Affairs abroad are bad. in Germany
particularly; which must have some temporary
dampening effect on this market On The other
hand. the crop yields in Europe indicate that
the demands upon us for food supplies this fail.
will be unusually large; and If our own crops
do not up to full standard. 1t is a toiera9ly
sure thing TO calculate on enhanced prices for
whatever we do have TO export.
CUTHBERT MILLS