The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-11-19
FINANCIAL AND COMMERCIAL.


Tt'lIt ITOH1 lnelT pOrltiOu was TnOulfleu on
the Stock Exchange to-day by the renewed
firnness Of time money and the recurrence
Of other unpleasant features Of the general
financial situation. The net result was a
dull but sagging and heavy movement
of prices, running In the last two hours
OF business into decided weakness. Com
mission houses. while admitting that there
ought to be an upward reaction in the
market after so great a decline. generally
discouraged purchases of stock by GUS
TONERS. The reason of their action vas,
plainly enough. the higher rates asked
from them for the Use Of money for long
periods. The rate now demanded for such
loans Is equivalent to about 81 per cent
a year. and there Is very little money OBJ
tainable. Under these circumstances COM
mission houses find il difficult to conduct
their business prohtably. The transfer
of cash from this city to San Francisco.
New Orleans, Canadian cities and other
places indicates that the banks will lose a
large sum of money on balance this week
and while il is realized that formidable
efforts are being made To prevent gold
exports and that these efforts will prob
ably be temporarily successful, specu-
u
may bring an announcement that gold
shipments have begun London exchange
in Paris to-day. II err rising l centime,
lost all the gam and fell back to the lowest
point yet reached. Sterling exchange here
was comparatively steady.
The weakness Of the market to-day
was the more noticeable because of tho
further extraordinary strength evinced
in one security, namely, Manhattan tn $
stock has risen nearly = points in the last
two days on very large transactions There
i still no authoritative explanat ion at hand
for the advance. but IL is generally believed
that the recent buying Is preliminary to an
issue of rights" to the Manhattan Stoclhold-
ers 10 subscribe NJ par to a large quantity
of capital stock. The only reason that can
he imagined for such n stock issue is that
il IL 10 defrav the expenses of the installment
Of electrical power on the system. Several
wears a 60 the Manhattan company put out
SIS 10000 worth Of new stock for that
purpose, but it is said that the road found
it necessary TO Use a large share Of the
proceeds of the issue for the purpose of
settling land damage claims which had
long remained in allowance and amounted to
nm enormous sum. Many people believe hat
Manhattan Is about to 60 eupon a per
cent. dividend basis, although, as the road
is now only earning between land sper cent,
the conservatism OF such a policy at this
time might be questioned and some OBJ
servers thought that the Manhattan move
ment was, as much as anything else, di-
rected against the short interest in the
property. But this later theory was secuted
by those most competent to judge Of the
facts. Ordinarily, a movement in any one
stock such as that in Manhattan would
cause a sympathetic advance in the rest
Of the list. To-day, however, the stand
ard securities. particularly Union Pacific,
and Nashville, Canadian Pacific,
Gas and St. Paul were pressed
for sale, The peculiar and mysterious
liquidation in 81. Paul continues TO eXer-
rise depressing influence upon speculation.
attention was attracted to-
lay. too. to the large sales of Union Pacific
This is a stock which has hitherto been the
asst to join in every downward movement
and has. as a general rule. declined less
than any other security in periods Of
market weakness.
Wall Street is not inclined TO look pleas
antly at the ge-increase craze which
has now undoubtedly taken firm hold of
he railroad employees Of the country.
The advance l. wages made by many Of
he railway systems has been voluntary
n name, but involuntary in fact. Those
Who have studied most carefully the rail-
way economy Of the country are firmly Of
he opinion that the railways cannot make
/ general advance Of 10 per cent In wages
and maintain present dividends. They
AN. perhaps afford 70 pay these charges
now, bu, very slight reduction in the
volume Of traffic would make the pay
ment intolerable There are, moreover,
iisagreeable anticipations as TO the meas
Tres touching corporations and the tariff
which will be recommended 10 Congress
BY the President in his forthcoming annual
II has been heretofore under
stood that the President was inclined to
let the tariff alone. Therefore the recent
story attributed 10 Congressman Babcock
hat the President has decided 10 call an
extra session for the purpose OF revising
he tariff naturally startled financial inter-
asts. Mr.. Babcock has denied this story
but his denial was guarded and incom-
plete Since that time he has withdrawn
his candidacy for the Speakorshp OF the
House OF Representatives in favor Of Mr..
Cannon, although his chances Of obtaining
the Speakership were fully as good as those
Of his opponent. II is believed by many
observers Of financial affairs, whose train
ing and experience have made their judg-
ment keen in political matters also. that
Mr.. Babcock would not have resigned from
the Speakership contest except upon the
stipulation that he was To be made the
leader Of the House and assume the chair
Of the Committee on Ways and
Means. Such disposition of affairs seems.
indeed, almost inevitable. The importance
Of it TO Wall Street lies in the fact that Mr..
Babcock is the head and front OF the move
ment for tariff revision, and that as the
leader Of the House his influence In this
direction will become paramount. An
other matter which is vitality adverse to
the security market at this time IL the bull
in both corn and wheat that has
been undertaken by the Chicago specu-
lators. Such a campaign il manifestly OF
The utmost injury to the country's export
trade
n Gssn