The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1903-02-08
STOCK MARKET BECAMEACTlVE

this step, and there remains some question
OF the efrect Of the new arrangements on
the interests Of other systems. especially
the could Southwssterns While tae uues-
ton Of this systen's far Western connec-
fions Ia thus brought into view the permits
sion granted to- the Wabash by the Pitts
hurr authorities for its entrance 10 that
city clears up problem that has been an
obstacle 20 It's eastward progress rather
long standing cause 81 sneeg!aatlye heSsit d,,
cleared up by the decision NJ the New
Jersey court Of last resort In favor OF the
rigat Of the United states Steel corporation
10 issue bonds for the Retirement Of part Of
It's preferred stock. While there IS some
difference 81 opinion ms 60 the BENEFITS ~
the plan, IN itself there Is no difference ~
the connection that these measures looklng
to the adoption o1 thc measures which re-
suited from the litigation has been detrls
ment to the securities Of the corporation,
The effect Of the decision on the market
daS been favorable. The clearing status OF
the Northern Securities company by
judicial decision, which is still in litiga-
tion. Is awaited TO free from opstructon
OF securities arc involved, ana " Is beileYel
vast sums Of capital are 10 some extent
tied up Ii is the CONVICTION In Wall street
that the lethargy Of the securities marker
FOR n long time past has been doe in no
small part to the suspended condition IA
which these great projects have been held,
as well as others Of an analogous And,
which are awaiting a determination Of he
legal standing Of the companies involved ~
litigation feature Of the week has pesh
the activity aud strength Of some OF the
to the rising course Of the metal aud conn
dent trade predictions for the coming year,
Companies concerned with the silver ANU
lead trade have also received attention
through the demand for their shares III tne
market The underlying cause or tle aw3k
ened speculation Is undopbte " the m
Crossed supply Of funds aNaliah1e tor SPs}I
ulatfvc purpcseS due TO the seaeohablo
renux o. funds to the reserve ccnters ne
New York clearing house authorities nave
taken this favorable opportunity 70 adNNnce
measurements for the requirement tnat
trust companies which use the clearing
house facilities shall enlarge tNclr cash re
serve holdings. The grpWtt ~ hummer
OF the trust companies and the expansion
OF their deposit banking business mas callSu
Increasing attention so the question Of tns
Adequacy OF their cash reserve, Wulcn
amount averages less tAan pc! teul -
their deposits The trust comp rs are 20
be required to increase the Pr atase OF
their reserves to per cent ny June ana
ultimately to a minimum o. lo per cent ~ ~
juno, 1904 It Is pointed ont that TINS VII
neccssltate the locking up OF perhaps $40
600 oOO Of cash in trust companies vaults
nv June l. next probably by Withdrawn
from vaults of clearing house hanks, whe5e
the trust companies now Keep their tunu l
on dcposit II Is considered that the neces'
sltv Of this additional security was demon
stratcd by the overe1pausion OF credits
which developed last fall. But it IS clSar
that the available supply, OF Grealh ioI 10
coming fall will he reduced ny laVsu
amount The effect on the markets wheu
the fall demand for credits aud currehc!
begins 10 make Itself felt IS tle pronIeIp
of great Importance to the financial world
There has been some broadening tendency
IN the bond market curing tho week nut
the price movement has been rather "a
regular. United states 5s aeclne1 o us.
tered advanced u per cent compaleu VITA
the close Inst week.