New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-06-30
THE FINANCIAL MARKETS.
SECURITIES CONTINUE FIRM.
MONEY CONDITIONS AT HOME AND
ABROAD-RAILROAD EARNINGS.
THE FINANCIAL SITUATION.


weakness Of the week prevailing for brief pc
Rod following the Of the King of Eng
lands serious Illness The decline in the Lon
don market was not heavy, and il not
thought likely that in the event OF the death
of the King there would be any important dis
turbarce in the foreign financial situation. Sc
rious trouble in London would, Of course, affect
the local market, but conditions here so
sound that permanent damage could hardly &C.
cur. Happily the King is apparently rapidly
recovering. and the foreign financial community
as we'll as our is confident OF a favorable
termination of the royal patients illness. The
financial situation in England is decidedly
strong. Despite the drain made on English
resources by the Boer war and the cutting off
of the receipts of gold from South Africa for
practically two years, the London money and
general markets are enjoying healthful con-
ditions with no evidence of weakness in any
department
The position OF the foreign exchange market
suggests that shipments Of gold may be made
before long, but II is not likely that any ex-
tended outward movement will develop. The
current tendency of money is to flow to this
centre and there will be nothing to reverse
this course until the demand for currency to
move the new crops develops With currency
coming from the interior, gold from the Klon-
dixie and lighter payments 10 the Federal Treas
ury there need be no uneasiness over the sup
plv of money in New-York. The movement OF
Klondike gold has begun, drafts aggregating
81 100000 having been received by branches OF
Canadian banks IN this city against shipments
OF the metal now the way. Receipts from
this source apt to be heavy while the re-
peal Of the war taxes. which becomes effective
on July l. will help to increase the local bank
holdings by reducing the payments by the
banks to the Sub-Treasury. Maturing obliga-
tions due in Europe in many cases being
renewed. in the confident expectation that
settlements may be made later on IN the year
through exports of grain and cotton. AS the
crops bear an important relationship TO the IN
ternationaI exchange market. il is extremely
gratifying TO know that current conditions in
the agricultural community indicate bountiful
harvests. with a large surplus Of wheat and
for export.
Stock market trading is doubtless still helo IN
check by the coal strike situation. 1t is en-
couraging TO note however, that securities
values are not adversely influenced and that
quiet accumulation of the coal shares, particu-
lary Reading is under way. It is believed that
Reading will sell much higher on competitive
buying Suggestions in the week that wabash
interests would like to secure the Reading sys-
TEN may have some foundation. but it hardly
seems probable that the present control Of the
chase of Pleading stock in the open market.
il is evident nevertheless that something is
going on" both in Reading and Wabash. The
Wabash company could use the Reading, and
IF it should be fortunate as to secure this
road the Wabash. in connection with other
Gould roads, would be one of the greatest sys-
tens in the country. 1t explicitly stated by
George J. Gould. however. at the time of the
purchase of the Western Maryland that the
Goulds were not interested in the heavy buy
ing of Reading stock Reading common looks
rather dear at prevailing prices. but develop
ments other than present intrinsic merit win
doubtless be responsible for a still higher quo
tation. Competitive buying is seldom based on
the actual worth Of the security Wabash COM
mon also seems high after its recent advance,
but then the stock is doubtless discounting
important future conditions that win favorably
affect the value Of the property
The first results Of the coal strike, far
railroad earnings are concerned, are shown in
the May reports Of several Of the anthracite
companies Erie Ontario and Western and
n Reading made poor statements in gross returns
81 but by heavy curtaiment in expenditures net
receipts were not nearly bad had been
expected. Reading. for instance, showed a de-
crease N gross in the coal and iron department
of S1,6I3,S04, compared with the same month
year ago. but by a reduction of S1,2J1,619 IN
S4221S5. Fortunately. the coal roads have
handled a large volume of coal business
throughout the year, and the coal mining and
ccal carrying companies therefore in
position TO stand = long siege from the striking
miners without jeopardizing the chances Of pr'-
senting favorable annual reoorts TO their stock
holders Moreover, as soon as coal mining is
resumed the demand for the product viii doubt
less be enormous. and, with sales at the higher
prices which viii prevail, profits Will again be
more thar satisfactory. The soft coal miners
show enthusiasm over the idea of q sympa-
thetic strike while breaks in the ranks of the
hard coal men are already developing Declines
in railroad earnings in May and June are con
fined a rule to the coal roads traffic receipts
in most sections Of the country maintaining the
high average that has prevailed for 50 many
months The fiscal year ending with this month
has been a busy one Tor the railroads, and re-
ports will generally show Improvement over the
record breaking statements of the preceding
year II the crops turn out well in the current
calendar year railroad earnings will doubtless
surpass all records of other years
The passing of the dividend on the common
stock Of the Colorado Fuel and Iron Company
and on the preferred stock of the American
Ice Company developments in the week
that caused some uneasness among holders of
industrial securities Colorado Fuel and Iron
did earn its dividend, and American Ice di-
rectors decided 10 apply the dividend money
to the extinction Of the company's floating debt
The Colorado Fuel and Iron Company. like the
Tennessee Coal and Iron Company. began divi-
dends on its common stock before the condition
OF the property and it's earning power justified
such payments. The passing of the dividend
Colorado Fuel and American Ice is not an m
dication of an adverse change in the country's