Omaha daily bee., 1903-03-30
RELIEVES STOCK MARKETS
Secretary shaw's Refunding Offer Has q
Favorable Effect
RATES FOR MONEY ARE FIRM, HOWEVER
Outside of stock Market Conditions
Continue Favorable, Though some
what COnfused-Expenses
Pi,ing Up.

NEW YORK, March z9.-(special.)-
Henry Clews in his weekly market letter
says:
Secretary shaw's offer to refund 500 00O-
900 OF government bonds naturally e1erted |
a favorable effect upon the stock market,
causing a sharp covering movement and a
fair rally. Its chief value, however. viii be
In facilitating the banks taking out Ia
creased circulation. This must take time
and probably will afford partial protection
against autumn stringency. The immediate
effect upon the money market Is therefore
not important At the most not more than
100000 cash will be released from the
treasury, and the promptness with which
this sum will be available depends entirely
upon the rapidity with which bonds are of
fered for redemption. Secretary Shaw has
acted wisely in counteracting as far as he
can the III effects of treasury absorplonsi
but HE resources in this respect are now
limited so the money market dlhiculties
must necessarily be very largely left to
For the next two weeks firm rates for
money are likely to prevail. Afterward
there should be some Improvement by the
though It would be an error to look for real
ease for some time TO come. Aside from
the April demands there is a positive In
adequacy in the supply of loanable funds;
because legitimate demands are heavy
owing to high prices and the large volume
of business, while large sums are still
locked up in important financial operations
Added to this great activity Is In progr, IS
In real estate operations In all parts OF tn
country, the west particularly having big
sums Invested In land speculltions OF
little money 70 srare for stock mark I
speculation, and the only natural means OF
relief Is through either iurther nquldation
or borrowing abroad. on the other hand
liquidation is always unweicome and meets
with strong resistance when carried beyon
certain limits. while the late declines, the
gradual strengthening of credit and the
large volume of business all tend to render
operati on the short eide hereafter mors
or less dangerous. 1t should not be for
gotten also that the present situation has
beer II a considerable extent discounted by
IA I'M.
satisfactory as many factors seem to be,
they have already caused a heavy decline
In the general market
Reserve below Average.
In spite Of decrease of about aO,OOO,OO)
much below the average usual at this sea-
SON. Funds are plentiful in the foreign
markets, especially at Berlin and Paris but
pending over there. particularly thn Trans
porariiy at least. absorb ali surplus funds
1t is quite reasonable to suppose that in
case of emergency good American borrow
necessary accommodation abroad, but
there is little prospect of any general
time to come. Fortunately, we are sending
our produce to Europe In very large guam
change. Much surprise has been excl ed at
the very low prices to which British con-
soils have fallen, which IN the opinion of
some experts rank the highest of all securi.
ties variety of causes have contributed
TO this result Liquidation in behalf of
those needing money Is one reason; the
coming reduction to "a interest rate is
another. and again some holders have un-
doubtedly sold to facilitate handling OF the
Transvaal loan 10 be followed by heavy
borrowings on account of the Irish lem
bill. In any case, the present exce'eive de
Our own government issues. In comparison.
sell much higher, because always in special
demand from the banks for circulation pur.
poses, besides being free OF taxation, while
British consols arc subject to the income
tax.
Consumption Keeps UP.
Outside of the stocx market the situation
while somewhat confused As not unfavor-
able. The crop outlook thus far Is, sahs-.
factory, and the agricultural classes are
lsS s1owp p tTo to Be 51J9ynS 5sJ g. T2sPSTtS 6e
are well employed and well paid This
means that cops1mptioa Is proceeding at
fore, continues large In spite of high prices,
and there are yet no signs OF reaction. Ths
chief complaints come from manufacturing
and transportation interests where the.
costs of production or Of conducting bust
ness have been 50 seriously increased as TO
cause a sharp dimtnution of profits. THIS
tendency is Increasingly apparent in the
returns of net earnings for railroads and
chief complaint is the increased cost OF
doing business and the falling away OF
profits. Should this continue, II viii en-
force new economies and possibly reduc-
tlon OF dividends In some quarters where
premature increases had been established d.
is sound; and while there are certainly tea
dencies that require close watching. stil
The outlook is for another good year II
those who control keep on conservative
lines.
One of the most unsatisfactory features
of the market is the large issues of nav
securities either recently issued or pending
II is true most of these issues are made by
corporations of unquestioned strength; but
the supply of securities added to that al
ready In the market is above the capacity
OF investors TO absorb at present prices
These companies are forced to make such
issues, to provide facilities imperativeiy
needed for. public convenience, refusal to
provide which would be very short-sightei 4
policy. Nevertheless they add to an az
ready oyerco1gested security market and
the more difficult. Another cement OF un-
certainty is the southern-Union Paciac
be reckoncd with as disturbing factor.
Foreign Financial.
LONDON. March 2a.-The stock market
attack. Responding to the reduction of in
terest. which begins this week. the scarcity
rowed money and the fact that the Trans
vaal loan is a better investment, consos
lowed their lead ar Ratted tiled ' BY this Ss SLUMP nDi5
stock markets have been doing iis little else
cause The situation at the end Of the
week held out little Improvement of con-
Closing OF the financial St ytar l;''fi this a week %
when II Is hoped that the bank rate will be
reduced and money viii circulate mare
freely. Americans were uneasy Throughout
the week and fell In sympathy with Wal
street yesterday, but the tendency at the
close was better than the figures Indicate
BERLIN, March 29.-Tne stock marke
last week again followed the situation or
Wall street with the keenest interest The
Frankfurter Zeitung weekly review says
Among all the factors influencing the
bourse none was strong the weak
ness of the New York market, to which
must be chiefly ascribed the fact that mos
quotations here shaded of" Among othai
factors tending In the same direction wal
the drop In English consols and Spanish
As. Nevtrtheless tbs under,one OF the mar
ket remained strong and yes ,erday thi
market showed greater independence O.
New York and London Domestic govern
ment loans held their own. Foreign rente
were mostly duh in sympathy with Spanisl
As, which were sold In enormous quantitle
upon French and German account becaus
OF the resignation of the Spanish fnanc
minister. Domestic bank stock was dull
although quotations were fairly main
tained, Notwithstanding the continue
favorable reports from the iron industr,
iron shares broke several points upo
profit-taking, but recovered strongly yes
terday. The price OF hoop iron was raise
2h marks per ton last week. II was an
nounced that Krupps will make extension
OF their works costing $S,000,O00 The ina
fna of he a