The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-09-13
FINANCIAL AND COMMERCIAL.
SATURDAY, Sept. II,

Prices ON the Stock Exchange to-day DE-
veloped al rasher strong resctionary ten
dency, although trading was no more active
than A has been wscentiy. Following the
precedent of the last three weeks, to-day 4
market might have been duly expected TO
exhibit weakness. inAsnuoh a yesterday &
market was comparatively strong. But
there were several circumstances to-day
directly initiating against quoted values
One OF these was renewed dissatisfaction
with the results of the monthly Government
crop report which appeared Yesterday. a
matter which, in connection with the APP
pearance Of colder weather In the North
west and of rainy and unfavorable weather
gene rally in the agricultural section,
brought about a higher range Of prices in
the grain markets. Comment upon the
annual reports Of the Atchison and Chicago
Milwaukee and ST. Paul systems was pessi-
mistic, There was further pressure upon
the Steel shares, while the selling Of Brook
Ign Rapid Transit stock. which began yes
terday, continued to-day even more vigor-
ousiy and depressed the price Of the issue
very notably. The selling Of Brooklyn
Rapid Transit was. in fact, the feature OF
ness in the st ock was assigned and the sales
did not look Is they were made for the
short account. The company's net income
for the year ending June 80, as shown in the
report published to day. ia 1904 sOS as against
$577 sos in the the year preceding. The
company has provided funds by the sale
Of bonds for various improvements made
during the year instead Of taking the money
for these expenditures wholly out OF the
gross earnings, as was formerly the case
There Is no doubt that the physical condi-
ton of the company is much better now than
1t ever has been and the prospects OF the
corporation certainly seem to be brighter.
Nevertheless. such liquidation, or what
looked like liquidation, of the shares as was
witnessed to-day could only have an ad-
verse effect upon the general market.
Quotations lowered slowly until the
appearance of the bank statement, and
then went of a little more rapidly. The
statement could hardly be said to be a
good one. Loans increased S2,l67 900, al
though deposits increased but 384, 800.
The cash loss was 81 ,9OS ZOO, or consider
ably more than had been anticipated, and
indicated that the movement OF currency
to the interior is greater than current es-
Inmates have made out. The statement
testified, as so many Of its predecessors
have done, to what may almost be de-
scribed as the frozen condition Of the loan
account Of the Clearing House institutions.
Reduction OF this account seems almost
impossible by any ordinary methods, and
while many explanations Of the fact are
given, none of them is as reassuring
and convincing as 1t might be. One
thing is certain. and that is that while the
loan account is in its present condition,
with crop-moving season at hand, there
Is little leeway for Wall Street boom.
Unofficial, but undoubtedly accurate, re-
ports from st. Louis and Chicago this morn
ing, giving the condition Of the banks there
as prepared in response to the call made
by the Comptroller Of the Currency for
OF national banks ON Sept. o, show that the
institutions in the cities named have not
increased their supply Of loanable funds
since last June when the last statement
of their condition was prepared.
Reviewing the events OF the week. the
general conclusion seems about right that
the more encouraged feeling in regard to
the crops, the easier tone OF the foreign
exchange market and the evidences of
good short interest 10 many securities are
set of by realization that the credit situation
Is still in a condition Of strain and by fears
that any relief from gold imports or from
the deposit OF Government fun dis in the banks
may be necessarily preceded by period Of
l.: IL. Tha t1l
rates for the use of money, high as they are
for long periods, do not afford a true index
to the real situation Such insight is best
given by observation Of such facts as the
enor OF the city Of Syracuse a municipal
ity whose credit is OF the highest, to borrow
at 81 per cent for six months. by knowledge
of the premiums paid to bankers by mer-
camille corporations for the negotiation of
commercial paper Generally speaking,
most Of the large city banks at present are
accommodating only their own customers
in this way and are not buying paper from
brokers to any extent worth speaking Of.
All this may, of course, and probably will
change as soon as the proceeds Of the sale
of our crops is at hand, but that time is con-
siderably in the future. AS the Atchlson
shares were the particularly strong stocks
during the week, the Steel stocks were
conspcuously weak, The weakness Of the
one was not as pronounced as the strength
of the other, but from the fact that their
ownership is 30 large and SO widely scat
tered, fluctuations In their price are always
rightly regarded as of great stock market
Importance. The fall in the Steel stocks
was declared by the speculative contingent
In Wall Street as due to an anticipation
that the reduction in the price Of pig iron
that has gone on all summer must sooner
or later affect the price of finished iron and
steel products. There is some evidence
that iron stocks are increasing, and no one
would he surprised if orders for steel rails,
&c. from the railroads and other large
consumers were somewhat less in the COM
ing season than in the current one. But it
is beyond doubt that the business ahead
of the steel companies is, after all possible
deductions, enormous, WHILE 80 far az the
dividends on the United States Steel common
shares are concerned those who should have
the best information concerning the matter
declare that unless decided change comes
over the entire iron and steel situation these
dividends are safe for twelvemonth
that is to say, az far ahead as fair calcu-
latons can be made,
New Work Stock ExCha nee SaIes SeDt ~