New-York tribune., 1902-03-17
THEssITUATION IN WALL STREET

THEsSITUATION IN WALL STREET
There yvas considerable irreguEarity in the
course Of lstocks last week. but the final prices
Of majority Of the issues dealt in were higher
than at tine close of business on ,the Saturday
preceding. This, too. in spite of "a development
that naturally might have been. expected to
lower prices a pinch in money mot severe. it
true. hut nevertheless a pinch. Ieventuated as
consequence Of the continued absorption Of
currency by tire Trea sury and the accumulation
Of cash by important concerns uo provide for
distributions. one corporation. the Standard
Oil Company. pequired S2Oo00000 for its quar-
terly dividend. and another. the consolidated
Gas Company, required S1.5OOOOO for Its divi-
dend. There were other companies requiring
lesser amounts, butiin the aggregate reaching
heavy figure. Much OF this money Will find its
way back into the New-York money market
but the process will be rather slow. At any
rate, the money will not be. returned with the
same abruptness that il wasstalIen away. Con
sidering the circumstances il is rather sur
prlsing shat higher rates for money than those
recordedrwvre not attained.
Seemingly. srill dearr money this week is
inevitable. What heights money will reach can
not be forescld. but the sooner maximum rates
are reachedt tie better. Very high rates will
start flow tof money tosNew-York from other
places whicls will break down rates and make
matters easy ,once more for borrowers. Money
is a commodity and. like amy other commodity,
il will seek the best marla-t. The shortage in
money in New York is not without a favorable
significance The fact r. that money is so fully
employed inathe general business Of the country
that the supply for speculative operations is cut
down. Business at large was never so great
and active as at present This is proved by
bank clearings, and by railroad earnings. the
TWO infaIible barometers Of trade. The returns
Of the railroads are il .tle short Of marvellous.
Most Of the Leading systems furnish weekly
reports Of their,gross revenues, and these stead
flv show gains, over the corresponding periods
last year. Moreover. eyFn larger earnings would
be reported eXorpt for a scarcity Of cars.
The transfer Of currency from New-York to
san FranC:scosto carry out the combination Of
street railway companies IN that city has eX-
cited much comment. Itrwas expected, and. in
deed il was given out, that the transaction
would be consummated by a shifting Of credits,
but this appears to have been found imprac-
ticable The inference is that there is as much
need FIR money in San Francisco as in New
York This is UNUSUAL Gold is almost con-
etantlv streaming from the Klondike and the
Western mines into San Francisco. and ordinar-
lily Il is quite promptly moved to New-Tork
through the medium of the sub-treasures in
the two cities. The process IS. or was to de
posit the gold in the Sub-Treasury in San Fran
cisco which issued an order for the delivery
Of il or Of corresponding amounts. by the Sub
Treasury in New York. The situation has been
reversed and gold is paid out by the san Fran
cisco Sub-Treasury on orders from the New
York Sub-TreasUry.
Not very long ago. also. gold was arriving
at san Francisco regularly from Australia, and
was promptly forwarded through the Sub-Treas-
urv there 10 New-York. The shipments from
Australia have ceased. but this IS something
that is readily explained The gold from Aus
tralia was sent TO the United states, or spe-
cifically to New-York orders from London.
London had obligations in NeW-York. Aus
tralia was indebted 10 London, and II was more
advantageous for London TO have gold for
varded from Australia 10 New-York than to
haze il shipped 10 London and thence to New
York New-York finally became indebted TO
London and recently. orders from London,
gold was shipped TO Paris, where London had
pavnents to meet Gold would yet be going
from New-York TO the other side OF the ocean
but that rates for money are higher here than
abroad It IS plainly preferable for the Ameri-
can debtors to let their debts stand and pay the
cheaper rates for money in London than to
borrow and pay higher rates here in order to
settle their foreign accounts.
Should money rates decline gold exports may
he resumed. They ably Will should any
thing happen raise money rates in Europe.
Exports OF breadstuffs and cotton have for
months been small. and, accordingly, the sup
Ily OF commercial bills of exchange has been
light. IL has been necessary, therefore, to use
bankers bills in meeting the requirements of
those who have had remittances 10 Europe to
make This is a situation that must apparently
continue for weeks come. AS the crops
approach maturity IL viii be possible TO draw
bills against anticipated shipments of them but
this can hardly be dore. at least TO any extent.
for two months come. The balance against
this country has been greatly augmented by the
return TO this country Of American securities
held IN Europe Europe may repurchase these
securities or II may not but if America is
blessed with bountiful crops this year these will
suffice In due course to put the balance I'm its
favor again.
An interesting financial plan has been ma
tured by the United States Steel Corpora ton
This concerns preferred stock receives per
cent dividends. 1t is proposed 10 offer 500
100000 IN 3 per cent bonds in exchange for an
equal amount of the preferred stock, y hich will
be cancelled. Thus there will be a saving in
charges of 100000 year Additional > pei
cent bonds 10 the amount of SJ0O00OO0 will be
cold for cash, so that the net saving In charges
viii lie 81 .JO00gO In other words, while the
capitazatIoG of the company will be increased
by SJO0O0ogO. the annual requirement for dis
bursements TO security holders will be reduced
81 10000. The interest the bonds will be a
fixed charge, but the dividends the preferred