The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-10-19
FINANCIAL AND COMMERCIAL.
SATURDAY. Oct. IS,

SAICkDAN' ocN' 10
Speculative enthusiasm IA Naii street
over tn" bond purchases by Secretary
~-aw vas uuat atcd today. There wa.
Il l. true, som" email apprehension that the
released Treasury fund, would pass into
Inc hands Of large capitalists who have on
hand great syndicate Rotations and tina,
tn" money might not bc found available.
after all. for the use Of the ordinary run Of
~pecu,ltor-. UIira-couserVatiNe bankers
continue to look askancc at the transaction,
commenting Ia a half-amused way at the
explanation Of his act ion given 10y the
Secretary, TIA, !c found many Western
banks largely below their reserve and in
need Of cash. II wa suggested that per-
apr these banks were under some obiiga-
tious 10 put themselves in shape 10y the old
fashioned method OF reducing loans, and
reference vas had 10 that provision Of the
National Bank "a, which. in eject, pro-
hlbit, tn" further conduct OF business
b. any bank whose reserve II impaired.
II wa recognized. on the other hand,
that this law had for a long time
back been practically disreRarded. II
seems probable to-day that moro than
the sl5p,Jc0u a.! bonds originally talked
II will De offered 20 the Secretary Of
the Treasury and will he purchased
hr han There are al.o persistent ~.
nors Of large gold imports for which no
basis can be- oh. aimed in the usually au-
thOritativp quarters Gold il it j. brought
over Will be- brought A. a lo-s and will sim
ply moan more money borrowed In Europe
TIE operation j. however, not Impossible.
- lar a, n" ca.oklng Of speculation by
tho banks j. concerned, operators are in
the main -calt,cal uI the power Of banks
20 accomplish 'hl-. Tho belief Of opecu-
.atoI, j.. therefore, tina, the money strin-
gnuCy J. over and TIE way open Tor smother
advance in uriocs Tie theory may not
be fawlc-s. bu' /, is the one that sway-
Wall Stree, iu-' now.
The ~loCk market to-day Ms -teddy
and strong uu'll the last half hour, when
prices sold down under the yralizlug -dleS
Gust omary a. rae end of he week and be-
cause OF q sudden drop IN the Baltimore
az Ohio share, which G.d rot lock So
much Ike iluu.iI;.ou A. AL c:lort to derrc.
the stock for purpose. The bank state
men, was favorable nd H. Gch a. il showed
q gain in cash. thereby correcting the OD-
N.UI- ...corcrctA"-- ii the reported loss III
cash IT, las weeks -tateneIt. q good
sized reduction u. looH,, and a consequent
Increase IL the surplus le.rrye. Il j. klown
that the financial condition here Low is
better than tina, indicated ly the bank
statement. a. the reduction OF loan, made
BY out-oi-town banks docs lot GeuIc in
THIS statement and vet has been steadily
going Of; nor did he bank statement OF
to-day show IN any degree, Of course,
the money paid out ~ tie Treasury
H. tie redemption II .0Eds. The
gross loans OF the Institutions repre-
sented al the Clearing House, however,
-tll keep ahov" gross deposits The ia
voriteS in the days trading were, and will
probably continue 10 be. the stocks Of the
soft coal road, There il no doubt that
the chief owners Of these properties be-
lievr and haN, substantial reason for lie
belief that the iet result OF the coal strike
will mean tar greater consumption Of
sof, coal in this country in the future. And
i j. likely that the recent advance in these
shares has the entire approval, If not the
direct support. Of the largas' holders of
them. Norfolk and Western seems to
have had it, rise for the moment, and Bati-
more and Ohio and Pennsylvania are now
the stocks chiefly dealt in The recent
increase in the gross earnings Of thes.
properties, due largely TO the increase OF
soft coal tonnage, illustrates the basis
Of the movement, and il is said on trust,
worthy authority that both roads are find.
ing their present and prospective business
far greater than their facilities for handling
it. The general speculative feeling AZ the
close of the market Was tina. higher prices
would be seen reNt week throughout The
security lst Time money continues TO
relax, which is All extremely favorable
omen.