New-York tribune., 1902-01-05
Financial.
The Financial World.

ioahed 10 all borrowers at per cent Rates had
been as high as 20 per cent, though only a fa,,-
loans were made at that figure; but II IN l.
per cent was common. The average for the
week may be set at between and o DER ca1t
Ihe higher rates, however did not seem ~
'rouoie the bull leaders. who gave the market its
strongest support at the time these rates nra-
vailed There was some selling yesterday afrar
the bank statement appeared because Of rho
large increase in il of the loan item 7bi. =
crease is due, probably. more to financial oDera-
uohs IN connection with the Northern Paci6c
conversion and kindred affairs than 10 rba
weeks operations in the stock market
special mention was made last week of the
coal stocks. which means mainly the Readirp
issues; and it was said that they were likely p,
advance. The trading in them has been largo
and the advance has been satisfactory Readir,-
common has been the most active. and on one
day scored an advance of four points from irs
opening price. Ii is not much what these
STOCKS nave done the past week which merits
attention; but rather the steady progress nm
ward which they have made in the past three
weeks 1t shows that there must have been
considerable absorption Of the stocks for in
vestment purposes. underlying the usual mar
ket trading which buys or sells for one or two
points profit.
The railroad list generally is the solid rock
OF the market, for in the present and what looks
like continuing conditions of railroad traffic
earnings must continue heavy IL does not need o.
that they should increase greatly over last wear
and they are unlikely do it, save on one or
two systems exceptionally situated but if they
hold their own against the enormoas totals OF
the previous year. they justify their prices
Conditions where the chief trouble with The
managers Of the roads is to move the immense
amount fraf FiC
senger and freight equipment is taxed to the
utmost TO meet the demands upon tt-such con-
dttions are scarcely those which make a hear
market for railroad securities. If these stocks
decline, the causes must be sought outside the
status of the properties themseIves-in monev
conditions, in the damage done by such ruiDous
declines as that in Amalgamated Copper. and
by the collapse Of inflated schemes like that
which has just come to grief in Ohio and an
other in Philadelphia.
II indeed, one wanted a text from which 10
write bear article, il could be found in The
late pernicious activities Of the professional
promoter Some of these people after a brief
career OF apparently dazzling success. have
shrunk 70 such dimensions that their creditors
have had 10 hold post mOrtem examinations so
TO say, on their remains The examiners have
found sometimes that these airy promoters
deluded by one or two early successes had
loaded themselves and such institutions as they
could persuade to lend. with stuff for which
there was market: and in fact for which
there never was a market except in their imagi-
nations. The problem now IS how 70 find for
the imaginary market a real one in which this
stuff can be sold; which means that the many
and various enterprises viii have TO undergo
some severe financial surgery. representing con-
siderable losses somewhere. This condition OF
a Il iDpr bfcf h.
consideration IN calculating the future OF the
stock market.
Argument has been made that something of
the same kind has been going on in the railroad
world as in the creation of the Northern Secu-
rites Company and the purchase of the Bur
lington at inflated prices, The argument is not
without validity. but II may be replied tina.
neither the one nor the other OF these scheme
an outgrowth OF the promotion business
They came into being. one as the result Of efort<
10 strengthen existing railroad systems. and the
other financial device TO the same end
although extraneous circumstances gave it the
appearance OF resulting from wholly unexpacr-
ed contest for control OF course. If any mis-
takes have been made here. they Will bring
their fruit but il looks as if the growth OF the
magnificent territory which these roads serve.
would justify all that has been done.
ON Tuesday. il is stated, the United States
Steel Corporation VIII make a report Of earn.
ings showing a net of at least So millions for
three months. This explains the big buying Of
the stocks. which has been a feature Of the
market for the past few days. This buying has
been OF the best character. and much of il that
which may be said to remove the stock bought
permanently from the market Not what has
already been done by the company is alone the
cause Of this buying. but knowledge that there
is business ahead for this year oF great voiuula
and lucrative character. If the preferred stock
should creep up to par and stay around there.
paying as it does per cent dividends. il would
not be surprising. and as the stock becomes
more and more absorbed by investors il must
naturally creep above par But a it is a large
stock and has stiI 70 grow into public conf
dence, II must he expected 10 move rather slow
ly. unless in times when great rush Of public
buying comes into the market.
II is expected that some gold may So
out this week. and any real ease in the money
market need not be looked for till the middle oi
the month at the earliest This Is the opinion ~
leading bankers. The state Of affairs abroad.
seems TO be mending Apparently the bottom
has been reached in Germany and turn FOR the
better has come. In England. the markets are
stiffening. and the strength OF South Afrl'ah
securities indicates the progress made in re-es-
tablishng the agencies Of peace in the cenltai
areas. while the fighting is pushed farther anu
farther OFF to the remOter districts only Wheh
the Rand mines working 10 their former
development. however. will the markets OF 'ls
world feel any substantial benefit from the solu
supplies. Meantime, the Government VIII nave
to do some more large borrowing. The new io@"'
now arranged for. will be brought out In Maf'"
The market during the coming week promises
to be a good trading one. and on any recessi'"S,