The Minneapolis journal., 1903-03-09
SHORT MARKET REVIEW
Railroads Planning Improvements
That Will Necessitate Spend
ing $eoo,ooo,ooo. .'' -
Special to The Journal.

Special to The Journal.
New York, March 9.-The Financial Age
says:
Announcement of the decision of the directors
of the United States Steel corporation to put the
stock conversion plan into effect was the feature
OF the development Of last week. A clause pro-
hlb1t1ng the institution of legal action In the
case Of default in interest unless such default
shall last for period Of two yenrs was an error
of judgment that quickly appreciated by
enemies of the new bonds. The impression pre-
vailed in certain quarters that the insertion OF
this clause was admission of weakness. The
reason for its Insertion, it was stated, was the
desire of the bankers to tide over any period OF
dullness. - - -
The vast sums Of money which the steel cor.
poration and the great railway companies are
preparing to spend in Improvements is pretty
good indication that the shrewdest fnanciers
IN the country believe prosperity will last some
which are made nc cessary by these improvements
should be placed on the market at Il time when
the money market is in such stringent condi
tion. - =
The extraordinary borrowings Of railroads dur
ing the past few months have played an impor
tant part in the Monetary situation and have
done much to prevent banks from recovering
from the effects of the usual autumn stringeficy
The: new stock and bend issues recently author
lied amount to more than. 100000 900: this es
innate is made without taking into consideration
the proposed $15oooo, 900 increase IN the capita
stock of the Pennsylvania railroad, nor does Il
include the large issue that will be made neces
sary by the Rock Island 8 acquisition Of the st
Louis & San Francisco road. 1t is safe to pre-
dict. that with the improvements. extensions ant
consultations planned by the large trunk lines
the amount of securities that will be issued dur
ing the first half of the year will reach the un
| usual total. of $500, COO, 900. :. j.
| = The defeat of the Aldrich bill through tn,
Vaccinations of mere handful of It's opponent
! in the senate is q keen disappointment.
J. Currency shipments to the interior have again
run we'll ahead of receipts, and large addition
| al loss must consequently be expected from thi
! quarter. r. h. III 4 -, ..s
| Gold exports from this side are now out O.
| the question, and the course Of the exchang,
| market indicates that sterling loans in larg
| quantities are being negotiated here. ,-.-
Notwithstanding the general market decline
and the fact that it has continued now steadiI,
| for several weeks, sentiment in Wall street il
still distinctly bearish and the belief seems to b.
| that lower range of prices will be seen befor
| the spring rase sets in. This belief is baset
wholly on the unfavcrable money Development
| and the congested condition of the bond mar
| ket. The condition. of the money market nigh
| be, viewed with fequanimity, but with reserve
| now down to the lowest figures at this time il
! years the matter takes OIL more serious as
| pect and it, is predicted that before tile tur
comes surplus reserves will be entirely wipe
! out. "a =. +-.. .-.= ,Ei...