New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-09-17
BONDS
THE DAYS OPERATIONS IN STOCKS,


Cali money ruled at a high figure throughout
sbe dav the greater number Of loans helhs
made at 10 per cent. The close was at ! Per
..-+ f,,,+ Of course this rate purely nom
tnaI as al requirements were met earlier IN 'he
sa, Al higher quotations. Stock market traolhg
was rot active. At times prices eNhlplleu d
sagging tendency although the net results loI
Che day showed gains in most issues Ihere
was nc effort to create an active blyihs move
rr7ent but there was evidence Of INSIDE accufnu-
rst,on in a number Of issues notably IN the
Gould shares The Street felt cheerful over the
money market outlook. it was believed that
active efforts were being made by prominent
banking interests to avert disturbance, While
II was thought that the gold import operations
which are now under way would soon develop
snto a movement of large proportions Nearly
s. 100000 in gold has been engaged or is on its
way 10 this country from London. South A1rlca
and Australia
Fortunately. the stock market is not active at
present and as stocks are in strong hahdS lheIe
IS little chance of serious disturbance in values
In Yesterdays dealings total transactions were
less than 100000 shares, although in the bond
market there was a larger volume Of business
The Wabash debenture bonds were again III
large demand al advancing prices: also Union
Pacific convertibIes. Wabash preferred stock
was conspicuously strong feature. advancing
from 512. to 55lx closing at 53 The common
rose in sympathy. but the chief buying was in
the preferred. The accumulation of Wabash
securities has been in progress for several
months. and it is likely TO continue for several
months TO come Other noteworthy strong
features were Rock Island. Chicago Terminal.
Manhattan. Missouri Pacific. Wheeling and Lake
Erie and the Wisconsin Central issues In the
industrial list the railroad equipment shares
Peoples Gas. United States Cast Iron Pipe and
Foundry Sugar Refining and American Grass
Irvine enjoyed improvements St Paul was an
early weak feature. but recovered most of its
loss before the close. Louisville and Nashville
ended at a net decline Of s.. The Reading
stocks were heavy, and at time the common
a point under Mondays close Western
Union gained point. Buying Of ST.
Paul on the decline was said to be for inside
account Afternoon dealings were generally
conducted on advancing prices.
The position Of the money market promises to
Improve far as an increased supply Of funds
at this centre is concerned. Gold is coming
from Australia. South Africa ard Europe. Bank
note circulation and deposits in national banks
are increasing Slightly. while October interest on
government bonds has been paid this week II
IS also possible that the Secretary Of the Treas
ury may add largely TO the supply OF money in
circulation by accepting municipal and State
bonds as security for the deposit of government
funds in depository banks. Unless this is done
the increase in government deposits in national
banks will be small it is practically mpos-
sible to secure government bonds which have
for so long time been the only security accept
ed bv the Treasury Department for government
deposits. There is no law that compels the Sec
rotary OF the Treasury to accept government
bonds only as under the law he must require the
depository banks Ito give satisfactory security
hy the deposit Of United States bonds and other
wise for the safe keeping and prompt payment
of the public money deposited with them" Some
bankers construe to deposit United States bonds
and otherwise" meaning that government
bonds or security equally safe must he de-
posted by depository banks
No former Secretary Of the Treasury has CON
sidered that deposits of municipal or State bonds
could be accepted as security for deposits but a
reading of the law leaves the impression
many minds that the right of the Secretary 10
take other than government bonds depends en-
tfrely on the Secretary's own Interpretation Of
the government bonds and otherwise" clause.
According 10 certain authorities, and other
wise" means security in addition TO government
fonds as for instance, the additional security
al one time required from the officers of banks
receiving the government deposits As condi-
lions have changed materially from the time
when the national banking act became a law. it
is reasonable to argue that new Interpretation
IF a somewhat indefinite legal clause may
be made AS to the value of a city or State
bond as compared TO government bond there
is no question that a New-York City bond or a
Nev-York State bond. for instance, is safe
security as governmel.. issues large amount
of money lies idle in the Treasury vaults while
money IN Nev-York rules at almost prohibtive
figures. The idle money in the Treasury should
he moving in the channels Of trade, but unless
some radical action is taken by the Secretary of
the Treasury TO increase deposits in depository
banks. there is little chance Of noteworthy ad-
dition TO present deposits
THE DAYS OPERATIONS IN BONDS.