New-York tribune., 1903-02-03
BONDS.

THE DAYS OPERATIONS In sIoChs-
Stocks were strong throughout tho day Deal
Sings reflected a better demand from substantial
market interests than recently recorded. ano at
.he close II was generally believed that. narrlhs
s,nfavorable developments in the venezuelan
situation. prices would work higher on a stead
s1v expanding volume of business So far stock
market activity has been affected by Venezuelan
affairs but values have shown remarkable re
sistance to bear pressure while there has been
-o Iiouidation Of any importance 1t Is quite
evident that securities in strong hands ana
-taf holders are extremely anxious for a hlsher
ouotation level. Trading yesterday in a num-
ter Of issues impressed careful observers with
.he belief that accumulation for some definite
r,urpose was under way In many other STOCKS
hourever huying. while accompanied by various
-11mors regarding alleged important develop
,7,ents was apparently of a purely speculative
.,s-u-e REPORTS regarding deals involving the
roelavsre and Hudson. the Frisco system Erie
end Rock Island helped the shares of these COM
-anies toward better prices. but they failed TO
convince the Street that rumored plans are
hacked by actual negotiations. Delaware and
Hudson made a net gain of over two points
Erie was ur one point, while Rock Island and
St Louis and San Francisco enjoyed smaller
gains Delaware and Hudson is scheduled TO
eelI much higher. according 10 good information
The COPPER shares were strong features; also
Canadian Pacific St Paul, Missouri Pacific and
,he Wabash shares. Good buying was reported
3D Wabash common and debenture B bonds,
dealings in the latter amounting in par value
20 Sf01 .Ceo. Pennsylvania shares were sold
down two points, owing, doubt. TO the an
,1ouncernent that holders of the convertible ;}la
per cent bonds would he permitted TO exchange
,hem for stock on advantageous terms. The
bonds were heavily dealt in at from 1o7 at the
clos -ta last 10
being 1oG The policy Of converting fixed
charges into stock liabilities is not generally
commended in the Street.
REPORTS from the Offices of the various West
ern railroads show that the movement Of grain
last week Was the largest for any one week in
the last four years. The interior movement Of
grain was heavy, receipts of wheat at primary
points amounting 10 41S9oo0 bushels, an in
crease of $4,000 bushels over the preceding
week. and an increase of 100000 bushels over
the corresponding time in 1902. Deliveries of
corn at primary points reached the large total
Of 5.343.oao bushels ;:o52o00 bushels in excess
of the same time in the year before. Receipts
of grain at Chicago aggregated $4,000 bush
els a. gain Of 1SS per cent over the same week
last year. and -: per cent over 1901 These
figures will be appreciated by owners of railroad
securities as they mean enormous earnings,
higher intrinsic value for investments, "a further
EXPANSION in the country's export trade and an
sncrease IN the wealth and purchasing power Of
the country. When the farmers and railroads
are rich the entire country feels the blessings
Of prosperity. The export demand for wheat
and corn is growing, and this factor, with in
creasing shipments of general merchandise,
ought TO dispel any uneasiness that may exist
over the foreign exchange market and the pos
sibity Of an outward movement of gold Our
debt abroad is being steadily reduced and IT is
not thoy-at likely that important exports Of
gold ~ he made this year.
At the present rate OF Sub-Treasury absorp-
ton Of money from the local banks the latter
institutions viii lose upward of S1ooooooo in
cash 10 the government by the end of the week.
AS the banks arc gaining from the interior,
and current cash and reserve holdings are
Sarge, the Su5-Treasury demand will doubtless
pass without important notice, but il will serve.
nevertheless TO emphasize the unfavorable in
fuence Of the Sub-TreasuTy system on the money
supply in this city. Since Friday night the
local banks have lost upward Of 81 100000 to the
Sub Treasury on customs account and the Cen
1raI Pacific Railroad note. amounting To
So 940 $50. Customs receipts at this centre
now at the rate Of 81 100000 week a direct
weekly loss To the channels of trade. which
need the money more than the Federal Treas
urv needs il. According TO present indications
there is little chance Of currency reform at this
session of Congress and until reform in this
direction is accomplished there viii he the usual
number Of monetary disturbances in New-Yorlk
as A result of the Sub Treasury system For
several weeks 10 come however. there will
doubtless he A large supply of funds this
centre. large enough for the requirements of
business and speculation. The fact that the
Clearing House proposes 10 compel trust COM
psnies that enjoy Clearing House privileges 10
maintain = ash reserve against deposits viii not
deranee the money market. only small
number of irlist companies clear through mem
bers Of the association If. however. the State
should enact legislation placing trust companies
in class with State banks. which are required
10 maintain II per cent reserve. there might
be some trouble. in thai event the trust com
Janies would be forced To call in large
in order sbiish a reserve Of this character.
The trust companies now such strong COM
petitoTs Of banks Of deposit and discount that
rhere is no good reason why they should not be
required maintain cash reserve more in
proportion to that required by the national and
State banks A recent statement hv the State
Superintendent of Banks showed that while de
rosjts in trust of seVenfy-seven trust conlpanies
81 the State decreased in 1902 SAG, 6,t0o0pl from
1901 general deposits increased $4,000 oDD
against an increase in actual cash on hand Of
,,nlv s(f3a -134. The percentage of cash on hand
80 general deposits 221. National banks
arc conapelled to maintain cash reserve against
deposits Of % per cent. and State banks