New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-11-09
THE FINANCIAL MARKETS.
Money and South and Sterling Declne-ore
Gold Imports Expected.
THE WEEK IN WALL STREET.


.-s,,st-ial and financial situation IN the last two
-esls o. a character sufficiently important 70
.-s.-.le stock market values. but prices have
20 fairly well without single indication Of
. -s-,-Sv feeling IN wall Street. The fact that
t.s,r losses in bank holdings. distinct signs Of
-,s~-ior IN the iron and steel trade. financial
.,,,slrs a. various centres and other disturbing
s..-u-es have not caused a fresh outbreak Of
-s,uisatio- merely shows that these factors have
already been discounted TO great extent and
+ra- the fan IN prices in the last year has simply
hen IN advance Of adverse Influences now com
s-r 70 light And IL i well that II is So LiQuida-
ion has been spread over long period. and as
q ~o-secuence losses have been lighter than they
--5-r- otherwise have been. while the business
Interests OF the country have taken the stock
market warning 70 adjust their affairs 70
more conservative basis and 20 prepare for
normal reaction 81 trade IN general People
have been preparing for trouble. and the chances
are. Therefore. That there VIII be no particularly
serious trouble. A normal setback viii not up
S., The intrinsic strength Of this oountrys in
5us.risl situation. The financial misfortunes
that have appeared In certain directions. the
disclosures regarding the promotion Of many IL
5ust-ial concerns and the losses suffered by the
public Ia STOCK market speculation viii leave
their mark b1t there Is 10 reason TO believe
that the country's general business VIII so 70
pieces.
The United States Steel stocks have made new
i0w record prices and other industrial issues
have been weak II the last fortnight especially
n the last week. but the railroad issues have
70. been materially affected. The best market
Judges believe that there may be more hQuida-
zion particularly Il money rates advance. but
they CO not look 70 further serious Wall Street
disturbance. The market certainly is taking
successive shocks IN the outside situation with
great corposure There appears 70 be good
power Of absorption on al declines Investment
money is SIN going into bonds. and that the
great railroad corporations are confident that
the situation is sound Is reflected in the renewal
O. bond offerings. At the current 80 OF new
offerings however. some people believe that the
railroads VIII become greedy and that IL might
be wiser 10 watt Urtl the outlook is clearer II
the money market before issuing new bonds and
thereby increasing their interest charges Of
course some holders Of stocks may become
alarmed al the large increase in bonds on the
theory that Il railway gross earnings fan OF, IN
come after interest charges VIII not be large
enough 10 meet dividend requirements. This az
guueut is answered 10y The railroads with the
statement thar the roads are now in position
10 reduce their operating expenses. and that
bonds issued for Improvements VII Increase
their earning power In addition % the $1,000
COO bonds recently sold b- the Pennsylvania
Railroad for subsidiary companies, a bond issue
q $1,000 pa0 by the Lake shore was made last
rreek: also $1,000 coo ~ the Baltimore and
Ohio. and S475oG00 preferred stock by the
Panhandle" Il is understood that the South
err Railway wants more money, and the Erie
has large amount Of authorized bonds 10 mar
Eet The Hes-Tork Central VIII doubtless soon
De IN the market for money Il II pushes its pro
pcsed improvements. while many other COM
r.arfes viii reec money FOL similar purposes
The criticism that The railroads are asking for
TOO much money al this time appears 70 be vel
founded.
Railroads naturally are optimistic because
they see that earnings continue heavy. while
they seem 70 believe that Wan Streets year Of
falling values viIl not 5e felt outside the Street.
The latter conclusion. however is not particu-
larry sound. for already there have been de-
z-elopusuts outside the Street that may be
traced -o the decline IL securities values.
Railroad earnings for the last week II October
show as q rule heavy gains over the core
spending tine In 1902 Missouri Pacific. for IL
stance. shows gain Of $4,000. making for the
month a gal, q $4,000 and from January l
gain Of 81 ez9I9s Southern Railway presents
gain ro- the last week Of S125G16 Wabash
gain o. SIS. $50. Canadian Pacific gain Of SOL
600 Denver and Rio G-a-5e q gain Of $1,000
while al roads reporting SHOW q total Increase
q about > per cent comparison being made with
e record breaking period last year. Under pres
en- money market conditions. however, the
favorable factors fl the situation are not likely
u be reflected lr important advances in stocks.
tbs city has been called 90 20 finance the move
r-ert q farn products 70 market. ana money
that might be used a. speculation IS therefore
actively employed IN the channels q trade.
When The return fow sets IL stocks ought TO
-~0-e m FOR & tine Al lest
The reserve above legal requirements Of the
local banks las fsIen 70 low level but the for
sirn exchange market has also gone down. with
The result that rates are Row al point that en-
cou-aFes god imports Last week 81 10000
was engaged for import. and as the market Is
soo5es with bills Is thought that further
stf---e--s 20 this Size VII be made. Cotton and
grain exports VIII be heavy this fall bit IL is
-ot safe 70 predict that enough gold VIII be
brought in 70 offset the heavy demand for CIR
re-cy nom tbs centre TO move Western farm
products 20 market The high price for cotton
makes The demand or the local banks from the
south unusuauy heavy. while II addition TO this
demand and the demand from the West the
Aev-yo-k money institutions have been forced
70 SEND large amounts OF money TO prevent
t1a1cial disasters IN other cities
Cal fands lent as high as per cent last
week ruling az about 4 per cent while time
fare we're generally al 8 Pc cent Discount
rates we're frrner ia London, and Il Is possible
thst the Bank q England VIII raise its rate az
IS weekly meeting on Thursday.
Cri-ea states steel common sold az 105z n the
week ans the preferred AT 81 the decline being
accompanied us.h heavy dealings A reduction
IL the price CT steel 5llets and the assumption
that cut vlu follow In the prices OF rails. TO
c~r1t-- rs