New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-08-31
THE WEEK IN WALL STREET.

within narrow limits. with final figures gen
orally showing net gains over the last quota
tions Of the preceding week. In the copper
shares there were marked gains while Atchison,
Canadian Pacific Colorado Fuel and Iron, Con-
solidated Gas and Union Pacific. of the active
list. presented a fair degree of improvement,
elsewhere. however. gains as a rule being con-
fined to fractions. Commission house business
light substantial market interests were not
active. and the general disposition among all
classes Of traders 10 confine market opera
tons to small commitments. Dulness in the
stock market at this period Of the year is not
unnatural; indeed. under present conditions. ac-
tivity would be against the wishes of the bank
ing community. II should not be assumed, how
ever, that the absence OF speculative activity
means that good stocks not being quietly
absorbed Well informed investors are still buy
ing stocks and bonds. and when the uncertainty
is removed regarding the outcome Of the crops
and the extent Of the demand on this centre for
currency. there ought TO be activity on the part
OF the bulls
The proposed scheme for federal Treasury
money market relief in case Of need this fall
naturally has created a favorable impression in
speculative circles. but in some banking parlors
the success of the plan is thought to be in
volved in much uncertainty. owing to the oues-
ton Of the Secretary's power to divert money
once placed in the Treasury to national bank de-
postories. Despite opinions Of some bankers
that the money cannot be legally paid out. ex-
cept on regular warrants drawn for appropria-
lions. Washington experts believe that the Sec
rotary viii be acting within his rights in throw
ing internal revenue receipts that have been
segregated from customs into the local market
Common sense suggests that action of this kind
would be within the law. and that it would af-
ford most excellent method of putting into the
channels Of trade idle Treasury funds
The courts have held that national bank de-
postories are in fact part Of the Treasury the
same as the Sub-Treasury at New-York or San
Francisco There is no question of the Score
tary's power TO transfer funds from one Sub
Treasury TO another. It is done every day He
could it is admitted by all transfer funds direct
from the office Of an internal revenue collector
10 sub-TreasuTy or a designated government
depository bank. This was done last fall. The
law irhibts the Secretary Of the Treasury from
placing customs receipts in national bank de-
positories but this very inhibition as to custom
receipts gives him by implication power and
authority to put internal revenue receipts in
national bank repositories. in case he can dis
tinguish them This has been done by keeping
the internal revenue receipts separate from the
custom receipts.
There Is no certainty, however that the local
money market viii need assistance from the
government, but it is encouraging TO know
nevertheless. that the country has Secretary
OF the Treasury who is willing to do everything
in his power 10 help the money market when
ever help is needed. The local banks are in a
much stronger position than they were at this
tire a year ago or in the year before and
bankers are not looking forward with any alarm
10 the course Of the money market this fall
They expect higher rates for money and they
naturally desire higher rates; but they do not
however, see any indication Of trouble in cur
rent conditions. Money on call representing
bankers balances ruled last week at a. Der
cent, while time money remained unchanged at
from to 6 per cent Commercial paper ran
from 6 to : per cent Borrowing from foreign
sources was a feature Of the week and the
disposition Of foreigners 10 lend money here
eKerted a favorable influence on sentiment
Europe is buying American securities in fair
volume chiefly railroad bonds. while home in
vestors, pointed ont before are willing 10
absorb attractive mortgage issues. showing
however, no disposition To buy the bonds of
concerns that are appealing for public help
The latter is shown in the failure of the pro-
posed S12000000 bond issue Of the Consolidated
Lake Superior Company. subscriptions amount
ing TO less than 100000. It IS now thought
that a thorough reorganization OF the company
viii be made and it is understood that syndi-
cate VIII he formed to supply SS,OO0OOO to put
the concern on its feet. This concern started
cut with great intentions and promising bust
ness. but without ample working capital the
result Of which a collapse in its financial
condition and heavy losses to the people who
bought the companys shares. An assessment
a s. a share is proposed. The great trouble
with many industrial concerns is the lack Of
working capital. the Consolidated Lake Superior
~
being good examples.
Several excellent annual reports were received
in the week, hut the dUlness in the market pre-
vented the influence Of big earnings from show
ing in the course OF values. The growing earn
ing power Of the Erie Railroad. due TO business
prosperity and sound management. is reflected
in the company's preliminary annual report
showing an increase for the last fiscal year in
gross earnings of S4,935.9T9. and in net earnings
an increase Of S2937.319. exclusive Of the 81 0O4-
GO increase in income from coal companies
When il is recalled hat the report includes a
period covering FIVE months Of the anthracite
coal strike. the significance of the earnings NAV
be realized. IN addition TO money expended on
the property and included in operating. expenses
the sum OF SS0S.45l. against S2495OI in the year
before, placed IL additions and improve
ments after which there was balance OF
s., 624S14 for dividends. After dividends on the
first preferred there q final balance Of
s. gas $50 against S2,94T,9O5 in the preceding
year. or over + per cent on the common stock
Another report OF interest received IN the week
was that Of the American Locomotive Company.
which showed a gain in gross earnings Of
Sc. 707. 331 and an increase in net earnings Of
s.. $40 2:53. After all payments. including ST.
10000 in preferred stock dividends and S1.I42-
$50 spent in additions 10 the property, there was
a surplus Of S1.9l2.321. against $224. 80 in the