The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-11-02
I FINANCIAL AND COMMERCIAL.
SATURDAY. Nov, 1

SATURDAY. Nov. I.
The security market to-day up 10 the
time Of the publication Of the weekly bank
statement, that Is to say, for three-quarters
Of the Stock Exchange session, was abso-
tutely stagnant. Prices varied hardly q
quarter Of point In any instance and trans
sections were few. The bank statement
was a good one. Cash holdings incrsased
% 33l, 100, a. against tho t2i3 100 accounted
for Yesterday by the known movements Of
money; and no other explanation was
offered for the fact than that Of the invari-
ably mysterious workings Of the average
system upon which the bank statement IL
based. The probability Ia that the cash
held BY the banks last week was greater
than was at that time reported and is now
less than was reported In the statement to-
day. Whatever market advantage accrued
BY reason Of the increase In cash was. how
ever, Offset In the minds Of traders BY an
enlargement Of the loan account Of
ths associated institutions Of 1851 100.
As on previous Saturdays for some time
back when q good bank statement ap-
pesred, the market sold or In all the
stocks which were 90 active yesterday,
notably In Manhattan, profit taking ret
In. So far as can be learned, there n no
peculiar reason for the strength Of Man.
haitian at this time. The franchise tax
case hrs not yet been argued before the
Appellate Division OF the Supreme Court.
and a Anal decision Of II In the Court Of
Appeals win probably not he reached for
eight months at least. The increased earn
ings Of the Manhattan Railway are matter
Of common knowledge. but II win probably
be a long time before there II any increased
distribution Of profits In the shape OF ad-
ditional dividends upon the shares. Nor
folk and Western and Northwestern COM
mon continued TO be dressed for sole. The
London market was closed and buying
and selling from this quarter did not figure
at all. therefore. In the days business.
The feeling at the close was that the manipu-
lative character OF Yesterdays strong
market had been demonstrated.
The chief subject Of comment In Wall
Street to-day was the speech delivered at a
dinner Of the Chamber Of Commerce. In
Wilmington. Del, last night by Mr., Wander
lip the vice-pres ident Of the National City
Bank, Of this city. The speech attracted
attention not so much by reason Of the
gloomy and dubious outlook Of the inan cial
situation that seemed to be impressed npon
him IN the largest financial institution In
the country, controlled, as it is. by a group
of capitalists Of national and international
fame. The presumption is. naturally. that
Mr., Vanderbilt expressed the views Of the
very able and very rich men who direct
the affairs of his bank and whose operations
at times "a powerfully affect the security
market as they do banking concerns. The
If Mr. NanI.r'ip'.
that In the last four wears there has been an
Increase Of credit liabilities in this country
Of about four billion dollars reckoning
from the known Increase Of the liabilities
on national banks and ccnaervatively esti-
mating the credits of State banks, trust
companies. private banks. &c-and that
during this period these banks have not
Increased at all their specie and legal
tender holdings. In other words, there
has been going on IN this country alto
gether too great an expansion Of credits.
The figures as stated by Mr.. yaderlip
cannot be gainsaid They have in sub
stance been time and again stated in The
SUH. The danger II. however. In drawing
conclusions from these figures, that are
altogether too pessimistic. It il probably
beyond dispute that the cash reserves held
country are to-day down to somewhere
between IL and Is per cent. of loans and
deposits. The first question naturally
occurring Is, whether such an EXPANSION
of credits IL greater than that Witnessed
IN other countries Of the world notably, for
instance. in England. Here, the inquirer
IL met at once by the fact that in England
the cash reserves held by the banks against
outstanding loans runs all the while as low
as 10 or Is per cent Surely our banks,
have distinguished precedtnts h their
efforts 10 accommodate the growing bust
ness OF the country. Much the same CON-
diton, and even in more Intensified form.
prevails in France. II IA true, of course
that in France and in England the concern
trated control exercised over the national
finances by great national banks allows
credit liabilities to expand with a greater
degree of safety than in a country where
tho various financial institutions making
loans are Of all sorts and classes, are greatly
scattered, and rally around no common
centre. All discussion Of the financial situa-
tion in this country, past pre- ent and future,
inevitably recurs 10 the wisdom and neces-
sitv Of the establishment IN our own land
Of great Bank similar to those in all the
other civilized countries Of the world. II
h pity that Mr.. Vanderlp did not specifi-
cally make this the moral OF his speech
at the Wilmington dinner
New York stock Excnanse SALES. Nov. 1. |