New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-08-11
THE FINANCIAL MARKETS.
STOCK TRADING EXPANDS.
MONEY RATES LIKELY TO ADVANCE
RAILROAD EARNINGS.
THE WEEK IN WALL STREET.

was not heavily engaged in speculation, but
pool buying and dealings for the account OF
substantial market interests were active
throughout the week especially in the last three
business days. The prospect for decidedly lower
prices is certainly not bright. Conditions that
bear on the actual value of securities are SOUND,
and as long as the country continues in its
present prosperous position the stock market
is not likely to move in favor Of the bears, ex-
cent on passing speculative reactions. These
reactions however may be sharp enough to
wipe out small margins When the men
who are carrying enormous loads Of stock
begin distribute their holdings among
the public the bear side of the market will be
attractive The market will doubtless be dis
turhed if the Northern Securities case is de-
cided against the company, but unless the de
cision comes at time when the countrys in
dustries are reacting or when the public is over
loaded with stocks. The effect ought not TO hold
values down for any length Of time. The rail
roads concerned will continue to haul freight
and passengers. and the community Of inter
est scheme will then be so amended as to con-
form to the law
The absorption tendency among railroads con-
tinues ii the week il was announced that
the 81. Louis and San Francisco company had
made a proposition to secure the control of the
high priced Chicago and Eastern Illinois, and
II was nlnteQ lQdI Inc NeNlIdl Oh NTtOI Ga lS III
also go TO the Frisco system. The process Of
concentration Of control viii doubtless be further
extended in the year and if the Northern Sc
curities case ends in favor Of the defendants
there will probably be several similar schemes
one Of which may involve the Gould properties,
and another the Louisville and Nashville, the
Illinois Central. the Southern Railway and other
Southern companies. The day Of big deals is evil
IDENTIFY not over. Transactions Of this character
tend TO create bull enthusiasm in stocks, and IN
the case of many issues speculative dscounting
of expected deals is now going on. The question
of the next dividend on Reading first preferred
received considerable attention in the week
owing to rumors that at the next dividend period
no payment would be made, thus continuing in
power the present voting trust At the end Of
the week. however, information from good
Philadelphia sources was that the regular divi-
dend would be declared. At the time Of the re-
organization Of the Reading all classes of stock
were deposited with voting trustees for five
years, and thereafter until i per cent annual
dividends should he paid for two consecutive
years on the first preferred stock, although
power was given to the trustees in their discre-
tion to surrender the stock at an earlier date.
The company paid dividends Of per cent in
1900. per cent in 1901, and per cent in
March. 1902. Earnings have of course, been
adversely affected by the coal strike. and there
has been a theory that the directors may con-
slider it wise not TO pay the full per cent this
year, and incidentally keep control Of the prop
erty, which evidently is being actively sought
by other interests.
Considering the various factors that govern
the money market, there is no cause for uneasi-
ness. Rates viii doubtless rule higher this fall
at least for call money. and the banks may be
forced 10 contract their loans. which viii affect
the small margin traders in stocks A contrac-
ton in credits can however. be effected without
injury to genuine holders of securities, while
operators with ample margins will be ade
quately protected if, through the forced calling
OF loans important declines are registered in
the securities market. It is more than likely
that IL money rates run up this fall gold will be
sent to this country from Europe. The foreign
financial centres are now in a position that VIII
enable foreign bankers TO send gold to the
United States, and it may therefore come TO
pass that New-York bank reserves will be sus-
fained by European shipments of the precious
metal. While the country has just been sending
gold to Paris. IT may appear improbable TO some
people that the movement will soon be reversed,
but II should he borne in mind that our heavy
merchandise export season is approaching, that
corn and cotton exports promise TO be heavy in
the fall and that money rates here are likely to
rule well above foreign rates throughout the
season. Notwithstanding the money market IN
certainties the leading men in Wall Street are
buIIish, believing that there Will be no actual
stringency in money and that bumper corn and
cotton crops will provide enough bull ammuni-
ton to carry securities values TO better figures
than those now current. The money market
will get along better if the spectators will not
try TO create big bull boom until after the crop
requirements have been met.
Advices received last week from the grain ter
ritory reflected remarkably favorable conditions
for corn and wheat Corn has now about
reached the stage where adverse weather
changes will have little effect on the yield and
on the known average il appears safe TO predict
a crop Of AT least $500. 100000 bushels The
importance OF big crops this year can hardly be
overestimated, especially as the yield Of corn
last year was so small With a big corn crop
there will be heavy exports of corn which will
go far toward offsetting this countrys debit bal
ance abroad. Trade reports received in the
week presented further evidence of Industrial
expansion throughout the country Railroad
earnings were heavy. bank clearings We're large
and the iron and steel market showed that pro-
duction is still behind consumption For the
third week Of July the gross earnings of fifty
two railroads amounted to SS906 064 against
SS,33o,S1O in the corresponding period last year
an increase of $50. 1874 or c. 50 Der cent For
the fourth week of July the gross earnings of
thirty-seyen railroads amounted to Sl1 314 800
against Sl05Sl099 in the corresponding period
last year. an increase Of 1913. 1876. or 693 per
cent For the month Of July the gross earnings
of forty-one railroads amounted to $40. 929 SI3
against S36,SS19 $40 in the corresponding period
last year, increase of So 47, S7, or 16 80 per
cent.
Many striking gains made by stocks last
week but the upward movement was not ac-
companied by active public support. Deals and
runnors OF deals helped the market and II US
thought that prices would go still higher before