The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-05-11

Clearing House scheme Of requiring the
trust companies in the city to keep . large
cash reserve In their own vaults Will fall
through, the increase in the South African
gold production to figures appro1imating
the maximum production known before the
Transvaal war, and the very great success OF
Secretary Shaw's bond refunding scheme,
by which the circulating medium OF the
country will be increased between S26,0OO'-
900 and S35 900 900, are matters for further
serious consideration by thoee who think
that there will not be money enough to
60 around" In this country this year.
There now seems to be no doubt, also
that at the extraordinary session OF
Congress, to he called some time In the
fall, bill consolidating and reforming
our financial legislation will he introduced
which will have the united support OF the
leaders of the dominant political party;
and there is authority for the abatement
that this bill will be pushed to vote within
thirty days from the time that It 10 laid
before Congress-. Nearly all persons whose
opinions are worth anything are agreed
that the trouble with our present money
supply IS, not that it is insufficient, but that
it is inelastc. II does not expand and
contract with the needs of the country.
While it is doubtful, therefore, II Congress
will enact an asset" currency scheme.
it Ia not improbable that some combination
of the present bond secured circulation
with one based in part upon bank assets
will be arranged. All the provisions OF
the Aldrich bill, allowing customs revenue
to be deposited in the national bank deposit
tories. &c, will be retained; and the law
limiting the rate at which bank circulation
can be retired at 100000 month will
undoubtedly be abolished The abolition
Of this law will be- indeed almost the most
important of all the measures proposed. 1t
is the one great obstacle in the way
Of real and active currency elasticity; for
inasmuch as banks now know that they
can only retire their circulation In limited
way, and will have to keep it out and pay
taxes upon it for long time once they do
take it out, they hesitate to ask for the
issue Of bills. even when they may see
good profit in their use and the issue may
serve to abate financial stringency.
The features Of the stock market last
week were the Missouri Pacific, Amalga-
mated Copper, Erie, Mexican National
and Delaware and Hudson shares. The
first named stock was bought. generally.
because of the tremendous Missouri Pacific
earnings-unless some catastrophe hap
pens these will be at the rate Of over IL
per cent. upon the stock this year-but,
specifically. because Of the accumulation
of stock that is going on in anticipation
OF the reorganization of the Gould system
of railways. It is fair guess that this
reorganization, when ii is announced, will
not take the form of a holding company"
but will resemble. rather. the character
of the new Rock Island Company Mean
time. the Missouri Pacific dividend may be
raised. The trade situation helps Amalga
mated Copper, In spite Of all reports
from the discredted Metal Exchange or
elsewhere, copper of standard grades in
not selling n, less than Is cents a pound
in this market and the tendency of prices
is upward. There is not the slightest doubt
that the Amalgamatcd Copper Company
is now earning very much more than the
present dividends disbursed by it, The
reasons for the peculiar strength of oil the
other stocks that have been referred to have
been duly detailed in the daily financial
columns of The Sun.
DANIEL +. KELLOGG,