New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-09-06
Financial.
The Financial World.

/ prices with limited speculation. Haa ~. -
trading continued so dull the Stock Ev,b,.'-l
would not have closed yesterday. Beyond =. -.
upward movement IN Atchison there was re-
to note in the action of the market. n. -
dency has been upward. because prlnargv -
weather reports have been satisfactory So.
the cotton and corn regions: and secoasl, -
cause the fear OF money squeeze las -
anayed by the promise Of the Secretary AZ -.
Treasury TO use 20 millions to avert IL
/ Az effect OF this offer Is that banks a., -
willing to lend money over the end OF the -.
at 01s per cent; while before. they were u,,,a,
ing 10 put out money that way at Der CERT
rate OF GA per cent. however, IS not exac,t
the thing on which TO found bull movement /.
the stock market: and quite evidently tbs -
men Of the Street are OF that opinion r.
is. Indeed, nothing in sight now 70 give nr,--,..
OF cheap money. The raising OF its dseouD,
rate per cent by the Bank OF England !,
Thursday is significant OF the situation. Tai,
unexpected action disordered the London nsa--
ket considerably. and gave a chill to ours. -
Rothschiid says II was done not because az a..
disturbed political situation in Turkey. bur ~
cause Germany was making unusually heav-
demands upon the London money uaarks, -
prepS ration for October settlemenrs-as =
should call them. The noble lord has sbo,r.
that he can go away of when discllssinv
American affairs; bat he ought to know what Ia
Is talking about when discussing home bus,usss
Assuming that ne Is right, II yet appears ,ba,
the money markets must be working rstbsr
close this season. because the German OctobAr
settlements are regular thing and have NJ.
before forced the Bank OF England to Unusual
action.
Therefore we are toisrabIy safe IN predicting
that money will rule high. and continue high I'm
I ha con u0FFn -
mand for It; as falling on Of traffic lessons
/ the demand for cars to move it. Had there
been market yesterday, it Is probable thu
hsnk statement would have given it a chill such
as II got on Thursday. since the statemsut
again showed the customary increase in loans
and decrease In deposits, with loss OF over
three millions in the surplus reserve. This now
stands at little over IL millions.
The discussion Of Secretary Shaw's plan n
an emergency currency has no bearing on pres.
ent market needs; but it is good in thai IL prs-
/ pares the public mind for legislative action when
! the right time comes That time Will not be
This year. There is no loss in that. however; be.
/ cause legislation affecting the money OF the
country is something to be gone about cautious
| ~. and only after tee public has been prepared
for it by such thorough discussion that su0staa-
tial unanimity Of opinion has been reached.
Otherwise. more harm might come OF il than
good. WHAT We ought to get at the next session
/ Is legal change in the Treasury methods, to the
/ extent of allowing all government moneys to be
deposited in banks. instead Of restricting il to
Internal revenue receipts only. The reason for
/ this restriction has long passed: and the re-
/ strictiOn should go with 1t.
( While monetary conditions are as they are
any upward movement IN the stock market IS
likely 10 be confined to occasional speculation
in a particular stock. such as the present specu-
/ lation IN Atchison. In the recent decline in the
market AtchisOn was pounded hard. and hence
offered the better chance for a turn the other
way If occasion offered Occasion was offered
IN the publication Of the Government report on
cotton. showing tho large Improvement In the
| condition Of the crop. What good Tor cotton
was good for corn IN the Atchison's territory. TX
| the corn crop there turns out well. Atcnlscns
| business for this fiscal year Is about secured,
and the Western contingent evidently thought
the report jusIlhed the formation OF a Dull pool
/ in the stock. This. it Is reported. was soon
formed; and to its operations. the quick rise OF
. the stock is attributed
The runors that the stock was being bought
for control by the Pennsylvania. the kocks4el
Iers, The vanderbilts. Goulds. RocA IsiGAa
/ crowd and some haIf-dozen other more or less
/ important corporations or individuals, me msnl-
bers OF the pool would naturally not discourage
l even If they had no part in originating them
/ 1t is much easier to excite the imagination OF inc
average trader with story Of somebody buy
ing for control than TO rouse his interest by the
argument that if Atchlson's territory mas IHl
crops, its years dividend is safe.
I Parenthet caIy IL may be noted that the cot
/ ton report referred to. IS regarded with some
scepticisnl in various quarters. some people a1s
inclined to believe that Secretary Wilson, having
\ taken an open stand against the current spScE
Iation. has strained the percentages little 70
make out a case for big crop. The trade
/ however took the document seriously enough.
/ iudging by the way the cotton market acted
! There was an immediate slump in prices. Pos
sibIy this was just waiting 70 come anyhow Tor
/ certain it is that the line where the Dressat
prices for cotton Of the old crop must be tested
by supplies Of the new. is being very closely az
preached
Atchison reports increased earnings since the
/ besinning Of the fiscal year. and it does this u
common with all the other large railroad sys-
tens. II we looked at the showing OF gross
earnings alone, it would seem a certainty ths'
with no more than average crops the roads
would be able to make larger dividend dtstTi1u-
/ tfons this year. But this disappears when the
NET returns are examined. More gross business
there Is but the increased cost OF dong II
seems to be about 90 10 95 Per cent The Price
Of everything entering into the working OF lhS
roads. from labor to axle grease. has risen 50
LARGELY. that the managers are disturbed az re
sight Of thsir cost sheets. The anthracite rola'
make the best comparative showing, ou' tAis
be- ause the comparison is made Win tne a-S7'
dered conditions Of the great striks- MS az
plies 70 the Erie. as well as the otHer ro@-"
Outside Of these there Is the same sto'S' -
I item. conducting transportation has
10 uncomfortable proportions. ms Win -
/ : - bc-T iseupe Is hav