New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-06-21
Financial.
The Financial World.

last week that the market would narrow down
and sink into duIIness. after the spasm IT had
experienced. This ii has done: this Is its pres
ent condition; and in the opinion OF people
whose opinion carries weight. this is likely to bs
it's condition for some time TO come two
per cent see-saw market. the room traders do
ing most of the work; with larger movement
only in special stocks.
The general tendency Of the market through
the week has been downward (the group Of coal
stocks being an exception. and closing prices
yesterday were very generally below those %
the previous Saturday. varying from fractions
to as much as three points in the active stocks.
They were. however. well above the low levei
made on the Wednesday Of the previous
week: on which occasion the market was saved
from what undoubtedly would have been MOST
serious break, by the large orders put In to buy
PENNSYLVANIA stock One or two quite sharp
bear attacks have been made on the list since
Monday last; but after making temporary de-
preston. the buying in OF shorts restored most
Of the loss London has been worked to
unusual extent In this sort OF manipulation
The action Of the miners convention in agree
ing to the operators demands in respect 70 the
election Of delegates. had a favorable effect Il
averted all danger of a renewal Of the coai
strike: and it did more. for in the frantic
thusiasn with which the convention received
Mr.. MitcheITs announcement that all differences
were settled it demonstrated that the men have
had all they wanted Of strike war, and that
they are just anxious to keep the peace as
the other fellows. The coal stocks have been
creeping up since this action was taken. tue
buying being scale sufficiently large 70
excite comment and stimulate inquiry
As against this bull material must be placed
the unpleasant disclosures in respect to the
Bethlehem Steel Company. and the mix-up OF the
trust company and the Shipyard concern There
is no Disgusting the fact that this had bad
effect on the Steel stocks. which have sold down
to record prices Then again, the traction stocks
were hurt by the necessity the Metropolitan
directors were under to make poor mouth IN
their testimony in the lease suit; and besides
this the air full OF ru1nors that two other
companies both classed industrials. would
possibly find it necessary 70 "rearrange their
finances" Considering these various unpIeas-
antnesses the market must be considered to
have acted very well.
It is generally understood IN the inner circles
of finance that Mr.. Schwab's holdings OF the
Steel stocks have been taken care OF: and IN
doubtedly it has been borne in on that gentle
mans mind that his muItifarious private inter
ests require his exclusive attention He has so
much to do in addition to being President OF
the largest manufacturing concern in the world.
that a prudential regard for all interests, would
seem to require that he should turn over the
Presidency of the Steel Company to some one
having less demands upon his time and energy
than he has Mr.. Schwab did great work IN the
upbuilding OF the Carnegie Company: but there
he devoted himself exclusively to the duties OF
his position under Mr.. Carnegies iron control:
but since becoming President OF the Z. s steel
Corporation, he has had so many other inter
ests on hand that it was beyond one mans
power to give proper attention to all These
private interests require his sole attention
The status OF the steel industry may oe as
suned TO be practically settled for the coming
fiscal year by the decision OF the managers Of
the Steel Corporation that the present schedule
Of prices can be maintained. 1t was said that
the new contracts for steel rails at SIS per ton
contained clauses giving conditional reductions
from this price; but Mr.. Gary has unequivoeally
denied this. asserting that the contracts are IN
conditional Since the great railroad companies
have been willing to make their years contracts
at S2S It is fair to assume that their managers
were sufficiently informed the situation to
recognize S2S as a fair price And when it Is
considered that large quantities Of rails have
been imported during the year at a higher hg-
ure simply because the mills here could not
meet the demands upon them. it would appear
that there was no reason for a retraction- Whac
will happen is that these imports will cease
The real situation, in fact, is that the interests
of the railroad companies and OF the gigantic
steel company. are so bound together. that the
managers OF all have TO act more or less IN
unison The corporations are mutual customers
on the largest scale and what would seriously
hurt the one would hurt the other. II may be
set down as a certainty that in the day when
the Steel Corporations dividends are IN danger
through shrfnkage in general business. railroad
dividends will be slaughtered
The settlement Of the steel schedule. reminds
US that new fiscal year is in near approach.
We can take a look at the money situation.
with the aid of some comparisons. On June I6
1900 the surplus reserve OF the banks was
200 /10ths per cent: call money was ! to ? per
cent: prime mercantile paper So per cent and
Kuhn, Loeb & Co. took big block Of 81 city
bonds at no "a I1O0ths. The loans in the bank
statement stood at SO millions. deposits. SCI
millions. At this time the country had begun
to feel it's oats good. There had Been n
spring decline in the stock market. but now
began the big rise. Everything felt the impetus
Of increasing prosperity. Merchants spread out
for larger fields. building opera tons began to
increase on the largest scale; the securities
market started forward and never stopped going
up till 10 was struck by the May panic OF 1901
With the closing OF this fiscal year we ind
the surplus reserve at 90 per cent call money
2h per cent. prime mercantile paper So. city
bonds at about 1O2 The loans stand at 9e5
millions; deposits SIS millions. We were Just
going into good thing in June 1900 with a
bank situation where deposits were heavily In
excess of loans. money was trying TO find en-
ployment and willing to take low rates for sure
investments. like city securities: while stock
prices were the level where ST. Paul was
selling about los. paying per cent.