The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-12-11
FINANCIAL AND COMMERCIAL.
WEDNESDAY, Dec. II

to account for it. prices of stocks to-day
broke violently. The announcement that
the banks had lost q, 4si 90 TO the Sub
| Treasury up to the opening Of business this
morning, and the further announcement
later In the day that 81 100000 more had
been deposited at the Sub-Treasury for
transfer out Of the city, 5000 900 Of which
represented shipment Of gold 10 Buenos
Ayfes In continuance Of the payments for
English purchases Of wheat, indicated that
Saturdays bank statement would, like that
OF last weeks. show heavy loss Of cash,
requiring a marked curtailment Of loans
to preserve unchanged the surplus reserve
OF the banking institutions. The shipments
OF gold To Argentina are, so far as our own
store OF cash is concerned. the same as
| exports Of gold to Europe. Many loans
were called to-day. and preliminary prepara-
tion was also made for the taking up of
between So.0OO.OO0 and 37.OOO.OOO in time
loans falling due week hence. All this
started a ball rolling down hill which had ,
apparently. been poised for a long TINT
| waiting for some one to push it, Genuine
! liquidation occurred throughout the entire
list OF securities. showing that stocks were in
hands considerable less strong than had beNn
supposed. and that Il more or less weak
speculation for the rise existed. The general
cause OF he fall was, simply. renewed appre-
pension over the state Of the money market,
and the realization Of the hard fact that
with an unlimited demand for money Tor
six months at and per cent. and even
at higher rates. II Is impossible 10 start a
campaign for the rise IN stocks selling
upon per cent. and even upon a less
profitable basis We're 4 possible for
sTeculators TO feel confident that in a month
or even in two months from now this money
stringency would be over, they might be
! content TO buy stocks az present prices
and hold them. But such confidence is
not possible. Indeed. there are those
who maintain that time money will rule
al per cent. throughout the entire first
half of the coming year. Very extraordi-
nary stories are anoat concerning the high
rate paid for the Use Of money for terms
VARYING from six months TO a year by GER
tain borrowers and even by certain financial
institutions. Many Of these stories are
probably exaggerated but there is no
doubt that, taken all in all. the financial
markets Of the country are now sustaining
the heaviest and what bids fair TO lie the
most prolonged demand for funds that
the present generation. The last large
city to raise the cry of tight money il Pitts
burg II Is stated that the current operations
Of the 6 eat iron and steel consolii atoms
established in and around that toNn result
in the weekly disbursal there and ship
ment thence TO places in the interior of
the country Of large sums of money, and
that this mouey is lon, time in coming
back
Another matter which is beginning 10
cause some uneasiness in spectators is
the warlike and political developments
in Venezuela. II is recognized that our
Government has assumed perfectly
proper attitude concerning the affair and
that we IN have no reason TO interfere to
protect the Venezuelans from the legitimate
consequences incurred by them because
of their failure TO pay their debts To foreign
nations. The outbreak Of war, for that
is what it means, between Venezuela and
two great European Powers. is. however
serious matter. II means that Great
Britain and Germany will proceed to occupy,
temporarily. the Venezuelan seaports and
perhaps a considerable portion of vene-
zuelan territory. Such circumstances al
ways present the danger to the Wall Street
mind that something may occur in the
course Of them involving the interests Of
the United States and calling for the inter-
vention OF our Government.
The news that the Colorado Fuel and
Iron dispute had been patched up after a
fashion. and such statements "a the splen-
did Northern Pacific report for November.
showing al increase In gross of $2i0,835
fell upon deaf ears. II the Street could be
assured that this conclusion Of the Colorado
c)mpany's troubles meant that the diff
culties between the Gould and Hartman
interests in general had been adjusted,
the result of the struggle there would have
been hailed with greater JOY than il was
The TACT Is. unfortunately, that these diff
culties are now greater than ever, as the
refusal OF the Southern Pacific Railroad
to join the so-called colonization bureau.
organized at St. Louis by railroad lnes
running est from that city, and the declar-
alton Of war by the Southern Pacific
against these lines. abun daAtly testifles
II was not known until after the close of
business that the terms of the lease of the
Manhattan Elevated Railway system TO
the marlborough Rapid Transit COMPANY
had been 70 changed a. TO read that instead
Of payment by the marlborough COM
pany of the net earnings Of the Manhattan
system not above per cent as rental
during the first three years Of the lease.
the Manhattan stockholders would acce,t
a guarantee of per cert. on the stock
through this period and the promise Of
per cent. additional If the earnings Of the
road justified It,