The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-07-27

III ~ ~ ~ I'LL y EHL InMN w NN ~
on a arg sale. has taken hold q various
railway --ruutte- and IA. stimulated =
market ~ tI.r Al m advance In pric~-
tu a level that ha- nn, only surprised In
y,stmsat Interest. and brought them
into the market %, sellers. but has induced
rNI erienc,d dealers IN securities. both
brokers and their customers, to pursue a
conservative Iolc,. and II is ,o te hoped
has not hsrn without effect anon the lenders
- money The r,,.rNV arquirei enor-
NOUS wealth ~ tho cstern multi-million-
aire- has ayUatHutl, not hruu ght to it,
po~es~nrs q ~erpu. sense ~ responsibility
as tn tho u-,. II u. stimulated to q high
degree e enthusiasm hv the sudden a.
QUESTION Of great fortunes, and by the
Showcases they have ttained in tho stock
market. AZ lrast a. TAR ~ quotations arr
cuuc'rnri. tie operators referred to have
engaged In ventures hat menace not only
M" stock market bat also the financial
situation and without doubt seriously
interfere with the adjustment 81 trsnsporta-
ton enterprises upon lines that would min
ltnize friction and pruInoie stability Of
ratcs.
To-day's statement ~ averages 81 the
~ " wv
ing and Significant for tho hight that IL
throws upon n phase " tho situation.
u l. a most important one ance IL relates
T." III" rc>ourS~ without which il il iinpossi-
hl" To conduct business, namely. b funds
available for acSs mn"datinns The Increase
81 n"trH sl0.eo.Ooin tho loans ~ the banks
shows hat tho-" Institutions have been
dra"n upon heavily /" conduct the Wild
speculation IN the h~igh-pric-d stocks this
"'"H. during ia" preNlou. week the de-
ihand for acc"u IN Hiatl"ns was supplied
lafg'iN IN IN" foreign exchange market,
"u' no" 'ha' London j. -ellhg STOCKS upon
an "s'''NlN" ~'ale' foreign credlts nave
u'''h curtaiI'd ana IN Consequence S'oSo'ooo
so'u mas p"h shpi'"i 10 Europe 10 meet
Z sihaI fractional part OF 'un oolss-
'l'hN. WIN IN" foreign source OF supply
SMUT on the o~N-rSansiin" western specu-
lai"iS nave lall"h hscs upon local resources,
h"ic" tho large Increase N loans and
c"n~sIuent increa-' IN deposits. which
cal Tor reserves IN excess OF the un"h-
Irr'"dIy large increase IN Iawfui money
shown by to-day statement.
That increas" was morn than twf>e a.
large a. that foreshado~ we'd by y'-ter-
days compilation OF Tho known move
Thents OF money. Ueing s..o<s.oo' and this
chans". together with III" expansion In
loans rai-'d the Poe 70 figures that ef-
hauSted all III the new reserves and drew
upon the previous surplus to the extent Of
NOR" than scoo.nn This small decrease in
tho surplus Is unimportant considered by
i's"f. The significant fact Is thai Just ~ the
banks ar, beginning To strengthen their re-
sources partly from unusual disbursements
10y the Treasury and also 10y receipts of gold
from the hlondik 20 that they NAV tr
In a position to meet the demand Tor cur
rrncv TO move 'h" maturing crops Thar
will shortly IL made upon thefn- IN" short
sighted speculative element referred To
las promptly exhausted the first moderate
addition 20 th" banks supplies OF cash.
Nv doing ~ they are inviting discomfort
for themselves aud those who are foolish
enough to follow them.
The situation outside Of Wall Street APP
pears 10 oe unusually satisfactory. While
there has hen damage To the crops IN
various -ections OF the country. chieny by
excessive moisture, the Agricultural out
look ~ a whole " exceedingly promising.
In consequence general business Is good
The prosTsct' II a heavy fall tradea are eS-
Ccllrnt and railway trahic returns are salts
factory All Of thls. however u t~ins dis
counted In the stp 4 mar k.t by u rapid msrks
ing up 81 price, without attracting the
support 81 either he ~-peSulating or the
investing public. There - cause Tor con-
graduation thai The substantial conditions
upon which intrinsic values are hased M"
sound and satisfactorily since they insure
"a good Legitimate" demand Tor Stocks when
the inevitable reaction from present IN
lstion II market values x Place.
la addition 10 tho possible disturbance Of
the financial situation that ha' been IN
dicated. M" same -pecnlators who are re-
-puu-ihle Tor that development,
are also creating friction be, ws-'n the I'M
purtant transportation companies Every
move l. being made With n high hand and
without regard To- the views or possible
81 ofhsr- II Cannot 10 denied that
there l. ~ likely Ia he friction bet~een
large railway systems as we'll a. small
ones and the policy just referred To may
develop q; sooner than the public eSpect-,
Tn, most important development this
week Wa the Informally announced plan
of IA, new owners % he Rock Island Rail
way Company to readiust us capitalization
nv increasing u nearly thre~fold The