New-York tribune., 1902-10-06

~ Louis Francisco, =, - IA, -
sSa.ssTR sSs.5s-R RSi%ay ........, y a. a. i
laioR Raeias l9s.. '.@t .@t lSs lss 81
wabash ................. 3S 81 - =
wSs,ern Union ........... 80 esh '@H IL
.Ex dividend.
Causes responsible for Mondays break and
TUESDAYS recovery arose from money market
conditions Fear Of acute disturbance IN the
monetary situation and preparations 10y the
hanks TO protect themselves by recalling loans
made TO stock market borrowers brought about
rapidly downward sliding scale OF values on
the first day OF the week Some people thought
on Monday afternoon that Wall Street " as on
the eve OF an old fashioned money panic, and IT
Is likely that If Secretary shaw had not taken
immediate steps TO relieve the situation further
eerious declines in securities values would have
leen recorded II probably is not generally
known that on Saturday afternoon a week ago
prominent Wall Street banker explained over the
telephone 10 a prominent United States Senator
the exact position Of the money market, the pos
sibflity Of serious trouble, and incidentally
the alarming progress Of the coal FAMINE IN the
country. The banker requested the Senator 10
send letter by special messenger TO President
Roosevelt asking the President 10 take steps 10
end the monetary stringency and the coal strike.
Secretary Shaw came 10 New-York on Monday,
and as a result ~ his visit action was taken 10
relieve the money situation. II the situation had
not been serious no such radical action as taken
nv the Secretary Of the Treasury would have
been considered. No other Secretary has had
the courage 10 depart from precedent IN the
manner followed BY Secretary Shaw. The Sec
retary has, however, ample authority for what
ne has done but II is 10 he hoped that the day
win come when the law affecting the financial
sperations Of the government will be so amended
as 10 make unnecessary the periodical appeals
from New-Tork for Treasury assistance. The
present ub-Treasury system is the chief cause
az money market disturbance at this centre
In many respects last weeks so-called un-
favorable developments were good speculative
tonics In the first place. a halt called on
reckless pool operations Weak speculative ac-
counts were eliminated strong accounts were
rnargined up 10 higher percentages, and much
stock that had been held purely on speculation
passed into investors boxes. The market Is
nov in a stronger position than for a long time
past. bur il may not be wise 10 expect an i'm
mediate resumption Of bull activity especially in
the high priced railway shares Conservative
interests believe that this is good time 10 move
slowly. There some stocks the market
values OF which measure their intrinsic worth
hut there many more stocks that are not
selling mp 10 their real value, and IL is reason
able 10 believe that these issues win sell many
points higher I'm the course of the next year
People who wish buy good stocks al cheap
prices 10 hold for higher quotations should in
Nestigate the merits Of the industrial and low
priced railway shares The industrial snares
were comparatively firm in last Mondays slump,
owing 10 the fact that there had been no ex-
tended speculation In these issues. There are
many sound industrial shares that can be
recommended as safe investments and at the
moment there are none that appeal more 20 the
careful investor than the railroad equi onent
company securities.
The railroad trafic in this country is enor-
NOUS. Railroads have In the last three wears
made heavy additions 20 their equipment and
az the moment more orders for new cars are
being placed than ever before on record The
demand for new cars and locomotives will con.
tinue as long the railroads last and it there
fore follows that the preferred stocks Of railway
equipment companies VIII always be considered
splendid investments. Railroad earnings now,
coming 10 hand show extraordinary gains over
the corresponding time year ago and as there
will he big corn crop TO haul this wear the
outlook suggests new records for heavy earnings
throughout the next twelve months In should
be borne In mind IN studying the wonderful re-
suits accomplished by the railroads thar earn
ings large. Notwithstanding that rates are
low. Railroad rates about the only item in
which there has not been distinct advance in
vi" last year ENloenCe OF the refnarkahle
oition of trade an the United States is reflected
I'm the earnings of the Pennsylvania Railroad
for August. The Pennsylvania Railroad draws
on about every branch OF the oountry's indus
tries for It's traffic. and its earnings are there
fore excellent trade barOmeters Gross earn
ings In August on the lines east of PittsburF
weie Ss.2so.J6l. an increase Of $500 400 over
August a year ago. when earnings were heavier
than IN any preceding August on record The
company's policy OF spending money on the
property from earnings is reflected in an in
crease in operating expenses OF SS3S 400 net
earnings. therefore. increasing only S5qOco
From January ] gross earnings on an lines
have Increased Sl2le0ooO and net earnings
have increased S3.9l5.sO0 The Increased usa 90
soft coal as a result OF the hard coal strike
naturally had a favorable effect on Pennsvi,
vania earnings. but the greater part OF the gain
represented the expansion in general business
The hard coal roads are losing money but an
all other directions traffic receipts are breaking
past big records.
The local markets chance OF getting gold
from Europe is not promising az the moment
but soon she foreign grain and cotton
movement begins in earnest there may be a
marked change in foreign exchange conditions
I'm raising It's discount rate last week the Bank
OF England served notice OF its intention OF re-
Aisunx an outward movement OF gold. and. In