The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-09-20
FINANCIAL AND COMMERCIAL.
SATURDAY, Sept. 10.

manufacturing companies and Of the sniaile'
iron and steel producing companies. wh'ie
accompanied with genuine liquidation in
these shares, was due in large measure 10
professional attack. This view was some
what disturbed this morning by the reveal
ton. that was news to most people, that
there had been a semi-demoralized CON-
dition of affairs late in he afternoon yes
tertlay on the Pitt sburg Stock Exchange
where. # course, iron and steel stocks,
moa OF them OF local origin. are la. gely
dealt in. In the first hour OF business
this morning, therefore, the iron and steel
stocks We're again. naturally. very weak
United States Steel common and American
Car and Foundry solt at l and 8 points
respectively below their closing price OF
last night, and similar declines occurred
in the price OF other securities OF the class
The general railroad list was also softer
than it was yesterday, although transact IONS
therein were not heavy. Regarding the
so-called railway equipment st ocks. which
have in the last two days figured so pronl-
nentlv in the market, there is not the slight
est reason to doubt that their business az
presen, il excellent and that the books OF
the COMPANIES show good financial sur
pllses to their credit That their business
would suffer In the case Of heavy contrac-
tion Of orders from railway corporations
next year is unqnestioned. but no slcn con-
traction of orders has as vet appeared.
and it is chiefly the spectators in wall
Street commission houses who seem TO DC
borrowing trouble over the matter.
certain proportion of the assets OF these
companies is now, of course, and indeed IA
usually, in the shape of the car trust GER
tificates OF the railway corporations whom
they number among their Gust omers. IL
has long been the custom of railway cor
porations to pay for the supplies purchased
from these companies by issuing to the
companies obligations of the nature de-
scribed. These cert ificates are a first mort
gage upon the goods delivered. BESIDES
being a general obligation Of the DEBTOR
corporation issuing them As such they
almost invariably command the same
price In the open market as the senior
securities of the railway company con-
cerned. Their price has, naturally. to
some extent suffered of late in the general
congest ion of the railway bond list, espe-
ciafly in the newer issues therein repre-
sented BUT exactly how strong an argyll
ment this is for lower prices for the stocks
of these railway equipment companies
seems doubtful.
Apart from the discussion OF the iron ard
steel situation Wall Street had little else
to-day to talk about. Positive statements
were made that the foreclosure was immi-
nent of the chattel mort gage held by large
banking house upon the property OF the
Consolidated Lake Superior Company to
secure loans of 600 recently made. No
confirmation of these rumors could be OBJ
tanned, though it is admitted that several OF
the mills of the Lake Superior company's
plant have closed down for lack Of funds to
operate them. The affairs Of the company
have, however, long ceased to attract any
attention in the financial district here. A
favorable incident of he day was furt her
decline in the price OF corn. The weekly
bank statement was about as expected,
save that for the first time in five weeks
loans decreased the curtailment being
S4,so7 900. Cash held decreased $,378,9 800,
and surplus reserves now stand at SIS, liza, 625,
which il fully up to the average Of recent
wears, and compares very brightly, Of course.
with the deficit in reserves Of over 81 500 900
at this time in 1902. After the statement
appeared, sluggish and irregular rally
carried the prices Of some stocks above
Last nights close. but left other stocks at
ket declines for the day. Taking general
view of the fluctuations Of the stock market
throughout the week, it must be said that
the predominant characteristic displayed
therein was the lack of interest still mani
tested by the general public and the small
degree OF buying power that the market
has attracted to its support. Save in GER
tain quarters Of the industrial list, no great
declines in prices have occurred; and. in
deed, everything considered. it must be said
that the railway list displayed not little
firmness. Perhaps this was because q
large speculative commitment for the de-
cline in the railway stocks sought an oppor
tunity OF retirement while the industrial
list was depressed There are still those
who declare that developments next week
will show that the damage to the corn crop
Is greater than is now supposed but the
best opinion of the moment il that this
damage will not amount to much, or not
enough anyway. to justify any holder OF
railway shares in selling his st ocks because
of it. 1t is the future concerning which
Wall Street is uncertain, and the ability of
this or that corporate enterprise to with
stand tests that may then be applied.
Very little talk has been heard recently
concerning the plans Of the Secretary of the
Treasury to increase the number Of nat ional
banks qualified to act rs Government de-
positories and to place Government money
therein just as fast as the proper security
can be furnished. The Secretary has no.
so far indicated a purpose to place this
money In the banks upon other security
than that OF Government. State or municipal
bonds. The expected Use of Government
bonds in this way has forced them
to a point where the banks are tempted to
withdraw them from the Government pos
session for the purpose Of sales, thus neces-
stating, Of course, a ret irement of bank cir.
culat ion to the same amount: and, much
to the Secretary's disgust the amount OF
circu LAT ion thus red during the present
month is nearly equal to the amount OF
money deposited in the banks.