New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-12-07
finantidl.
The Financial World.

for
The conditions that the loans asvrs.
gate Ss1 millions, which is nearly exactly n.
figure they stood at the same week last vaa-
but the deposits last year were 939 millions,
while now they are $40 millions; that IN A
posts now are less than the loans, while La,
year, they were IS millions in excess On ~.
other hand, the surplus reserve is about 10 mill
IONS as compared with less than 8 millions Ana
we have still the back log of the reserve asa.,.,
u s. deposits which is not counted In m
above IL would seem from this statems,t
taken in conjunction with those for some we4s,
past. that the banks keeping themselves A.
snug as circumstances permit.
This it must be expected they will contfnus
to do. bearing in mind that the January s.t-
Elements are not far off; when there must \,
the usual calling in of loans. preparatory to the
disbursements 1t will require good banking
arrangements to avoid trouble over this period
of money shifting. No expansion OF credits
therefore will be possible; but a contraction q.
the same is probable.
The stock market did not decline on thu an
pearance of the statement, principally because
it had already been on the decline since the
previous Tuesday, and in a measure had els
counted the unfavorabIe showing. The sudden
drop it had that day occurred Immediately after
the Presidents Message came out: but there
was nothing in the Message to cause this; and.
in fact. it was not the cause
The market broke following Manhattan down.
wards, which fell rapidly five points: and a
number of leading stocks. trailing after, re-
corded losses OF two TO four points 1t was tia
traction stocks which had in the previous week
lifted the market out of a sort OF Slough OF
Despond and given it strong rally. This had
not exhausted itself at the close Of the week;
and last Mondav fractions On
the way up. with Brooklyn in the lead When.
therefore, the next day, Manhattan had its sud-
den collapse which Immediately followed the
declaration of an increased dividend. it power
fully affected the whole list. Neither were mat
tiers bettered by heavy selling Of ST. Paul.
which sent that stock downward.
IL may be said that the fractions and So. Paul
have been the features of the week; and it nav
be mentioned Of Manhattan that from the date
the first upward movement was started in il
on the arrangement with the Interborough
Company, I'D TO yesterday, the dealings aggre-
gated 1S millions while the capital stock Is only
IS millions. Manhattan would seem from this
to be what is called "a free stock" The cause
Of it's five point drop last Tuesday. and the
further decline since. the selling Of very
large block OF the stock by some one-and the
consensus of opinion in the Street is that 1t was
Mr.. John D. Rockefeller, il. 1t was Jokingly
said that he took his Manhattan like a cold
bath-quick in and quick out Incidentally.
making net profit of fifteen points.
There is not much to be said Of the rest OF
the list, which since Tuesday has been working
downward slowly and sluggishly. with no spe
cial point of interest except. perhaps. the trad
ing in ST. Paul This has been so large as TO
give rise to reports that the company was sell
ing treasury stock in advance of its issue; but
officials of the company have positively denied
this, with some tone of indignation.
The action Of Amalgamated Copper lately Is a
little suggestive; and if one does not care to
take chances on the long side, it might at least
be well not to go short.
When the Colorado Fuel fight is over. so far
as the election Of a Board Of Directors ends II
the question suggests itself what the defeated
party will do with its stock. With all the
strenuousness of the contest. the price of the
stock settled itself between 50 and 90. most OF
the time near the first figure; 50 that the par
ties to the fight clearly had such enthusiasm
about its value as Mr. Gates. whose buying
last summer carried it away above par. Look
ing at the contest from the outside. 1t seems
to have resolved itself into a struggle Of rail-
road representatives TO get control OF the freight
which the company supplies: and the company
might supply a good deal without being in
never has been. 1t has indeed. been from the
start, sink hole for millions; from causes
which those who know the conditions under
which it works can easily comprehend; and
these conditions will continue for many years
While a note of warning Is sounded by the
Financial Chronicle on the railroad reports,
which begin TO show the eating up Of gross
earnings by increased expense account. Wall
Street is seemingly content with the railroad
situation; but all attention. and apprehension
Also is concentrated on the financial situation
1t is almost the one topic Of discussion. be-
cause it is the main depressing influence on the
market. Because OF this state of feeling. the
report OF the Chamber of Commerce on the
currency laws and Treasury regulations; and
Secretary Shaw's suggestions. in his report.
on the same topics; have an interest which they
never would have if the weekly bank statement
were showing pIethoric reserves and the banks
had their men out trying 10 place loans at :
per cent.
Before remedies are adopted. the need for
them must be felt. and felt sharply All that
can be said of the matter now. is that the
Chamber OF Commerce and Secretary Shaw
have got a hearing. The business world. anu
Congress. ready to listen; and after some
more listening they will be ready to follow.
They have not reached that stage yet Two
principal points 1t is necessary to concentrate
public attention on first, TO the exclusion OF
other things:
l. The necessity for amending the Treas
ury regulations that ii can do Its banking ths
same as every State in the Union does. every
municipality. every corporation. and every N
dividuaI who has money enough to keep bank
account Under the present regulations. It's
system is that of putting money in the old
stocking
- That the banks on occasion. may issue
emergency currency Ton the principle OF Clear