New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-11-01
Financial.
The Financial World.


differed very little from what they were fbs
week before except in a few specialtles Dir
ferences in the standard stocks were frrerula-
and uufmportant. but generally there was a
shade CT Improvement After the ST. IOufy
troubles broke out. the market fell into duTnez,
and so continued to the end This was about an
the response 10 made to the alarms from TIA
West. the hurried shipment Of millions 70 tba
centres OF disturbance. and the rise Of the esu
money rate as a consequence Of this drain 10 A
and ; per cent. From all which il may he in
ferrea that the public. seller has gone and tie
public buyer not yet come.
Three months ago. had tne market been struck
IN two weeks with such successive blows az The
Baltimore and Pittsburg failures. the St. Louis
troubles the ANA Iganated Copper development
and the outrush Of money TO help the imperiled
IL is certain that the collapse in prices would
have been Of panic order This is the judgment
of men who know. That IL has been able 70
stand up az Il has. again illustrates how ali IN
portant in these matters is the element q TIM
The great public liquidation had run 70 TIA
point OF exhaustion before these troubles cane
The tree had already been so violently shaken
that when shaken again there was no more
fruit to fall.
Opinion in high banking circles is that the
situation at St Louis is now safe-although Il
must be confessed that the opinion is bot sx-
pressed with entire confidence. II develops
also that for weeks past there has been much
anxiety among leading fnanciers here az 70
what might happen AT St Louis Now that ths
crisis seems 10 be passed. there is relief II Is
also expected that there win be more o. such
troubles at scattered points through the couu-
try though none very serious
West Of the Mississippi the situation seems
the soundest This is because the community
there is mainly agricultural. and the farmer this
year has had good crops, and ready marks-
for them at high prices This he also had for
three or four years preceding. except the one
shortage in corn last year. The recession from
the great boom naturally struck the East first
and hardest for in trade and manufactures. and
the making OF securities. the imitation has been
largest Banking opinion also Is that Chicago 3
in specially sound shape This might perhaps
he inferred from the notable absence from thai
centre of those hourly "reassuring' desDaJches.
nervously declaring that everything IS safe and
there is no reason for alarm. which for weeks
past have preceded the outbreak Of trouble OF
some kind at the point where there was. as as
serted. not the slightest cause for uneasiness.
Chicago has sat tight and said nothing
The outrush Of money the past week has been
the largest ever known in the same time; the
call rate rose. and London felt the shock in a
fall in exchange. indicating that money may BE-
drawn from that centre. This viii certainly
happen If the necessity fo- it here becomes SUI
fcientIy urgent that IS. if the price be Ugh
enough. What rate of interest will be high
enough is necessarily matter OF conjecture As
the London money market is not specially Hush.
the first pull on it may put up the Bank rata
The outlook at this time seems TO be that for .
some weeks the call money rate viii not be %
low il has been
81 49, * has Enr I,
exhibition Of the shrewdness Of the Pennsy
vania managers in taking advantage Of evsry
favorable turn in affairs to provide the company
with money 1t was found by the bond houses
a short while ago, that there was an improving
demand for bonds-goOd bonds. The investor
who still had any money left. frightened away
from the stock market. was looking again Tor
something to buy where his principal would De
safe. Promptly the Pennsylvania people supply
him with 20 millions Of new bonds Just meeting
the requirement. Ten millions OF per cents.
perfectly safe. guaranteed and secured iron elad-
and as soon as offered every bond taken the
issue being largely oversubscribed.
The Philadelphia. Baltimore & Washington
issue Of 10 millions go at par; the Long
Island 10 million issue at o.. As the sync--
cate takes both. it averages a 4 per cent bond
at about %. Savings banks. trustees Of estates.
and other like investors. are looking for sound
bond which pays per cent, anu IEeSe are u
fered at a price Just enough below par 20 make
a good bargain for the purchaser or course.
before the syndicate was formed. all the hnan-
ciaI connections of the issuing house had been
sounded as to their willingness TO buy The re-
sponses being favorable. the formal orEa-lza-
ton Of the syndicate follows. the outcome being
already practically determined.
Speaking Of syndicates it may be remarked
that there are some syndicate operations still
running in connection with the Gould-Rocas-
Teller enterprises. the members OF which are
growing very loudly. They are growing about
having their money tied up. with noch.ns 20
show for it but receipt. when they need the
money very much in their business. IL IS
strongly urged that these syndicates be closed
up. II the members had the securities they
would be better OF than they are. with nothing
but receipts. There are a round number OF
millions tied up variOusy in this way. and th-ss
who put them up impatient 70 have ire
uanag gers close up the syrdlcates some way or
other.
OF course the unfortunate Steel stocks SUI
fe.ed in the market the revelation made or
the state Of affairs in respect % the bond
preferred stock conversion scheme When this
scheme was first proposed. IL seemed a marvel
OF ingenuity in the fiscal line; the company net
ting some 40 millions cash. while actually re-
ducing it's annual charges. as a . per cent Sc
curity was to take the place OF . per cent.
The present status OF the scheme seems TO De-.
as shown by the application to list the rev
bonds that the company has so far raised il
cash a little less than three millions and pad
over five millions in commissions 70 DO IT, 80
wonder the operation is described as "ors Of
the strangest fiscal operations on record Bow