The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-03-02
THE FINANCIAL SITUATION.

conditions bearing upon the prosperity
of the country was increased last week,
Higher prices for cotton delighted the
Southern planters and did not dismay
manufacturers Advances were made IN
the prices Of iron ore, of various iron and
steel products. Of copper metal ana OF
many other raw materials. The outlook
for the usual spring trade is rosy. and more
extensive preparations than ever before
known have been made for it. The open
weather of the week assisted In all TINS
and likewise helped 70 dissolve the
congestion OF railway freight franc
and TO facilitate. particularly. the mining
and transportation OF that much-nseded
article, coal. There are q few reports OF
damage to the winter wheat crop. but. taken
as a whole, the crop is in better condition
at this time of year than 1t has been LOT
a decade. Imports Of merchandise are
heavy, but our excess OF exports over
imports fer the seven months OF the nscai
wear IL. nevertheless, more than S,5S.oooV'
Neither was there anything in current news
: developments in last weeks shortened
business term that could in the slightest
! degree induce the holder Of shares OF STOCK
! for investment to part with his property
| The earnings of industrial corporations
! continue singularly and especially large
and there has been buying Of their shares
' Of a character which usually confines itself
10 the railroad list. The Industrial COM
| panies which have been managed carefully
and have not been weighted down with over
capitalization are, almost without excep-
| ton, showing magnificent results. while
many others whose future was considered
hopeless a few years ago and which have
since been rso 'ganized in one way or
another seem now in the most promising
condition.
The speculative market. however. has,
plainly enough, suffered from the dulness
incident to the season and from the attacks
Of operators for fall In prices. Practically
all that these operat ors had in their favor
vas the clouds or what looked like clouds,
gathering over the money situation, and
the discouragingly slow progress at Wash
ington Of the Aldrich Government Deposi's
bill The announcement each day Of drafts
upon the resources Of the banks caused by
shipments of funds to the interior or by the
covering into the Treasury Of payments for
customs duties was made tho most Of by
those bearish gentlemen. II is true that
the ice over which spectators usually
skate In February and March is. by reason
Of this annual money difficulty. always
more or less thin. and that market prices
in this period often sag; and II Is also true
that the ice this year is q little thinner
than usual. In addition to the unusually
heavy demands for money for agricultural
purposes made more heavy by the very
greatness Of the prosperity Of the farmers
and the large requirements for funds to
carry the corn and cotton crops at the pres
ent exceptionally high prices ruling for these
staples, financial matters are complicated
at this time by the large borrowings OF
money for corporate purposes These
purposes include the purchases OF new prop
erty Of one kind or another, the increased
cost OF mainte rance OF old properties
which is necessitated by the hard use re-
ceived in the present business rush. and by
the thorough going betterments and i'm
provements to which there seems to be no
end. II must be confessed that the railway
bond issues which have had their origin in
this entirely worthy and proper way. but
which have nevertheless. amounted to
over Si7S 100000 since jan. I. have played
a part In discouraging speculative en-
thusiasm in the stock market. The
best observers seem to be OF the
opinion that constructive operations OF
the kind referred TO will he in evidence
throughout the year and that the require
ments for money to carry them on must be
taken into consideration in studying the
future OF the money situation. Again,
the preliminary payments by our Govern
ment on account OF the Panama Canal
assuming that the Panama Canal Treaty
will be ratified and that the Secretary Of the
Treasury will provide, as is understood
10 he his programme, for half the sum
necessary to meet the payment by an issue
Of bonds-wll take about $40 900 900 from
the hanks Of the country before midsum.
mer There IL another matter Of great
interest concerning this Panama Canal
question Of which most p ,ople are ignorant.
Under the treaty our Government agrees
"a nav t2SOO00 a wear as long a. the canal
il in existence 20 the Government Of CO.
lombis There are reasons for 10
lisving that the Government Of Colombia.
desiring 10 obtain q large amount Of gold
coin for the purpose Of reforming the cur.
rency 81 the country, will endeavor to pro.
cure the money al onoe AT discount from
banks in the United States. giving ~ s~c'u-
ry all assignment Of lts claim running for
4 period OF many years upon this annual
nayment by our Government. Whe, her
our Government will recognize such an
assignment, and whether banks can he
found tina, will advance money upon II
remain to H. seen. but Il Is probable that
a determined -fort. a. least, will he made
by III. Government 81 Colombia "a com
,,lelt such an arrangement. Further.
n the Clearing House Association pro,
e. ode a. II has -el on, To do, Ia require
all trusi uompanies using tie Facilities -
A.ap 5 per @nt reserve against all deposits
,n June 1. there all H. another very con.
-id-rsble locking up Of '-Iren' funds. and
a msr. ~ les d.cidsd contraction Ia local
laukius l"ans
I, Ass. I=fhaps lsosuss tho financial
community bad ,hsse matters ~ mo-, Of
tl,.n ~ mind thai II considered ~ minuJrly
and usIyously la-' ssek the chsho.s II
tis snATiusuf ~ 10 AldTtoi tall ln lss
n "a. unpaulsan nsi gr Oi tbs tnaasurs.
the lnahiis~i grnuinsnsss aud s,n-nSIh ~
he popular dssiTr 'hai y become . Ice,
AMI 81 tho skilfL And pow.fiui l.snds No.
shicii the lal usis ~ i"Si'ts, The hos.
II rassciV,is yls-sfNsIs has 81 uo time 10.
-...a..N a A.. fls f.IL 49, al.