Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-04-06
steao, Decline Experienced For
Two Months Bonds Begin
ming to Tempt Investors
FACTORS AFFECTING MARKET
Those Having Direct Influence Are
the Money Situation, Southern Pa
eifc Difficulty, Decision in the
Northern Securities Case, and Con-
dition of Labor.

sold to stand-still." Despite all the
turmoil and nervousness and the bear
alarms and skirmishes, prices Of most
of the securities actively dealt in were
not lower.a the weeks end than they
were on the Saturday before. The mar
kct has steadily declined for two mon
tbs, and prices have fallen to a point
which discounts the effect Of a good
many unfayorable influences. There
is as yet no great rush of investment
buying; but many good stocks and
bonds are now selling from Az toa Az
per cent basis, and they are beginning
to tempt 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 bond market say that
they believe that this demand will in
crease. Another matter is. as every
body at all familiar with Wall street
sentiment knows, that the time of year
is against a declining marketable
tionally so just now, In view OF the
prolonged and severe fall in prices that
has already occurred, and of the favor
able prospects for the crops ana Tor
general business.
The late Mr.. Daniel Drews remarks
on the subject have passed into famil-
lar aphorisn. 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 enthusiasm 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 sig
nificant. There was disclosed with
reasonable c1earness, an extended and
unwieldly commitment for the fall in
prices that had begun to lose conf
dence in Its position.
The factors directly affecting the
market at present, are the money sit
uation, the Southern Pacific difficulty,
the decision in the Northern Securities
case, and the condition of labor. The
fact has been many times emphasized
that the scarcity of money has really
been of a general and sentimental sort,
at no time assuming, as it did last De-
lcember, the form of n pinch 1t is
evident that, despite the enlargement
of the circulating medium in the count
ryin the last six years, the earning
power of money has so increased by
reason of vast activity Of trade and
business, that stocks and bonds are no
longer as attractive as they We're when
selling at prices which only Melted the
investor return of 352 or 4 per cent
on his money, and that, therefore, the
chances of sale or of unsold corpora
ton issues of that character are re-
duced.
This condition was intensified in the
financial district by the tightness 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 turnout the fall months, both
events being caused by the needs of the
agricultural sections.
The loans of our local banks are now
s46,000.000 less than they were when
the upward movement in the stock
market eliminated In January, and u
period is at hand when. If things come
70 pass as they always have done. bank
resources in this city will gradually
grow greater. The loans of the clea.-
sing-house institutions are still about
the same as deposits therein. But it
must not be forgotten that In addition
to the money of depositors the capita.
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 situ-
alton is the retirement of circulation
that Is going on by the banks simultu-
neously with the efforts of the secre-
Htary of the treasury to Increase bank
circulation by. means of his bond
lefunding offer. The 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 profit to be made by the
banks in taking out circulation against
the new 9 per cent sborIs, which are
lightly taxed and sell at q low pre-
MUM.
Not little store is set in Wall street
on what is believed to be the purpose
OF the secretary of the treasury I'D pay
out of the treasury direct the $50,OO0,-
600 that will probably fall due from che
government about July to the stock
holders 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 payment need Not be
made If the entire payment will be
covered by exchange bills. Wall street
doss well to rejoice, for the fact means
that lust 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 government surplus of receipts ovsr
expenditures at the tilIe is pretty large.
The surplus recently has not increased
as rapidly as it did at the beginning of
the year.
Gold Rush DepopuIates Town.
Needles, Cal, April 6.-Thih town
is practically deserted as everyone has
gone ten miles out in the desert in a
lush for placer gold mines. The first
gold was found twelve feet below the
~. Nm, 1,s..