The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-04-06
THE FINANCIAL SITUATION.

II must BE- said that taking the stock
market last week as whole its tone was
hard and that II displayed not few indica-
tions Of that condition known technically as
sold to a standstill' Despite all the
turmoil and nervousness and bear alarms
and skirmishes. prices Of most OF the Sc
curities actively dealt In were not lower
at the weeks end than they were on the
SATURDAY. before. The market has steadily
declined for two months. and prices have
fallen to a point which discounts the eject OF
a good many unfavorable influences Ihere
In as vet no great rush OF investment buying;
buS many good stocks and bonds are now
selling from * TO a ~ per cent. basis ana
they are beginning to tampt investors. a
very fair demand for bonds OF the class
described Is reported from the other side
OF the water. and good judges OF the oono
market say that they believe that TINS oe-
mand will increase. Another matter
Is, as everybody at all familiar with wan
Street sentiment knows. that the uiho
Of year Is against a declining market
additionally so Just now In view OF the pro-
longed and severe fall In prices that mas
already occurred and OF the favorable
prospects for the crops and for genera
business. The late Mr.. Daniel Drew's re-
marks on the subject have passed INTO
familiar aphorism. Panics and disasters
can, Of course, come at any time; but the
spring, with its sense Of new life and vigor'
almost invariably brings hope and enthusi-
asm into the stock market, as 1t does INTO
everything else. The action OF the market
on the last two days Of last week was very
significant. There was disclosed with reason
able clearness an extended and unwieldy
commitment for>the fall In prices that mao
begun to lose confidence In It's position.
The factors directly affecting the market
at present are the money situation tne
Southern Pacific difficulty, the decision In
the Northern Securities case and the con-
dition OF labor. The fact has been many
times emphasized in various columns In
THE sun that the scarcity OF money mas
really been Of a general and sentimental
sort, at no time assuming. as 1t did last
December, the form OF pinch. II Is
evident that, despite the enlargement OF
the circulating medium in the country In
the last six years. the earning power OF
money has 50 increased by reason OF the
vast activity Of trade and business that
stocks and bonds are no longer as attractive
as they were when selling at prices which
only netted the investor return OF 81 or
Der cent on his money. and that. therefore.
the chances Of a sale OF new or OF unsoid
CORPORATION issues OF that character are
reduced This condition was intensifed
in the financial district by the tight
ness Of money that always occurs
on or about April There being. indeed.
only two seasons in the year when
money rates normally harden in this
country, one a little before the date named
and the other throughout the fall months,
both events being caused by the needs OF the
agricultural sections. The loans Of our
local banks are now $40 900, 900 less than they
were when the upward movement in the
stock market eliminated in January; and
a period is at hand when, II things come to
pass as they always have DONE bank re-
sources in this city will gradually grow
greater. The loans Of the Clearing House In
stitutions are still about the same as deposits
therein. But II must not be forgotten that
In addition to the money OF depositors the
capital and surplus Of the banks are at the
command Of their managers and that the
amount Of this capital and surplus reaches
large figures. A rather curious feature
of the situation Is the retirement OF cir
culation that Ii going on by the banks
simultaneously with the Efforts OF tho
Secretary Of the Treasury to increase bank
circulation by means Of his bond-refunding
offer, TIE only inference that can be
drawn is that the money situation Is better
than It seems to be. for II present money
rates are to hold there Is a nice prof1t to be
made by the banks in taking out circulation
against the new per cent. bonds. which
are lightly taxed and sell at low premium.
Not little store is set in Wall Street on
what Is believed to be the purpose OF the
Secretary Of the Treasury, TO pay out OF the
Treasury direct the 100000 that will
probably fall due from the Government
about July to the stockholders OF the
Panama Canal and to the Government OF
Colombia. Many OF the Panama Canal
stockholders live in this country, and so TO
that extent foreign remittance OF the pay
ment need not be made. II the entire pay
ment will be covered by exchange bills.
Wall Street does well to rejoice. for the
fact means that Just so much new money
will be released in this market. caution
may be extended, however, against over
rejoicing, inasmuch as the Secretary OF the
Treasury can hardly take the entire sum
out Of the Treasury vaults unless the Gov
eminent surplus OF receipts over expendi-
lures at the time is pretty large. The
surplus recently has not increased as
rapidly as it did at the beginning OF the
year.
The Southern Pacific affair will. no doubt,
be greatly clarified to-day. The Judge
who heard the argument upon the motion to
restrain the Union Pacific people from vot-
ing their Southern Pacific shares has an
nounced that he will endeavor to hand down
his decision this morning or this afternoon;
and then Wall Street and the parties to the
controversy will have some idea Of where
they stand The general expectation In Wall
Street, which may, Of course, be disap-
pointed, is that, inasmuch as the vital issue
in the case is the alleged illegal control Of the
Southern Pacific Company by the Union
Pacific Company. the Judge may. although
he may not expressly 80 state, decline to
pass upon the question, on the ground that
adjudication Of the same question Ia now
pending in the Northern Securities lti-
CATION and that 1t will be unwise az matter
Of public policy to tie up great interests
elsewhere until the latter, case Is decided.
The popular impression also seems to be
N --.R ILL l.. Ill