New-York tribune., 1902-12-04
BONDS.
THE DAYS OPERATIONS IN STOCKS


Stock market trading doubtless held IN
check by the fear Of higher money rates Call
money ruled above per cent. with exceptions
At per cent but there was good supply at
the rates quoted A per cent money market
however. did not encourage active specula-
tive demand for securities. Prices moved in an
extremely irregular manner throughout the day.
with the tendency more in favor of a lower leVel
than in any other direction. Final figures now
ever showed only small changes, with more net
losses than gains. Manhattan presented the
hest example of the days irregular1ty- open
ing at 151a. the stock advanced to lo2Ss. then
declined to 1874, subsequently advanced 10
15ess. closing at 1904, net loss Of q points
BROOKLYN Rapid Transit was one of the few &C
tive features that showed uniform strength
Total dealings amounted TO less than five hun
dred thousand shares. the greater part Of the
business being supplied by Sugar Refining
BROOKLYN Rapid Transit, Atchison, St Paul.
Louisville and Nashville, Manhattan, Reading
Missouri Pacific, Southern Pacific and Union
Pacific. An important development of the day
was the governments cotton report, showing an
estimated WELD of over 100000 bales. On re-
ceipt of the report prices broke on the Cotton
Exchange and it was thought that the oecine
would stimulate the export business
Call money rates have been firm in the last
two days with the tendency apparently toward
q higher level. High rates fer money in De
Gambler are not unusual. and stiff loan mar
ket throughout the month should cause no un-
easiness over the monetary situation rms year
,he return flow of currency from the interior has
been slow while the absorptions by the Sub
. Treasury from the local banks have been heavy
In addition 70 the losses suffered on Sub-Treas-
urv account the local banks have been forced 10
satisfy extraordinary demands for funds for
Anna q
week 100000 has been taken at this centre
for shipment 70 the latter point. With demands
Of this character TO be filled, the banks naturally
are not in favor Of an active bull speculation in
securities, and with call money rates at the
current level it is not likely that bull cam
paien will he inaugurated Holders of securi-
ties. however. see in present money market con-
dtions no argument for the sale OF their pos
sessions. Higher prices will develop later on
Conditions affecting the money market contain
no element of weakness. There is nothing un-
favorable in the factors affecting money, save
the power of the Federal Treasury to absorb so
much money from the legitimate channels Of
trade Despite the losses on this account there
Il now in circulation, outside Of Treasury hold
ings S102, 453 92S more than there was at this
time a year ago. while the circulation per capita
is sos 73 against S2S 04 in the corresponding
period last year. In the year gold in circulation
has increased S63 653.6I5. and national bank
note circulation has increased $50, o,1S9,42l Re
garding the present banking system in this
country which at certain periods Of the year
permits interest rates 20 drop exceedingly low
and at other periods rise dangerously high
Secretary Shaw. in his annual report, says
that the time has arrived when 1t Will be
necessary to adopt Of two policies
either the government debt must be perpetuated
as a basis for national bank circulation, and
additional bonds issued as occasion may re-
nlIire or some other system must be provided
The Secretary favors the issuance of circulation
l,ased OH the general credits of the banks. or an
asset currency, properly guarded, Of course
small tax on such circulation would cover any
possible loss. and the Secretary suggests that
such A tax be called a premium or insurance,
and the government be the underwater. a circu-
Jation of this character guaranteed and redeem
bic by the government at the expense of the
hank of issue would certainly be safe the
rresent national bank notes. The Secretary
wisely suggests that provision for the issuance
of credit currency TO tha amount of the banks
eacital would be an unyvise experiment, as eau
.ion should he exercised lest the currency be
unduly inflated.