The sun., 1903-11-12
FINANCIAL AND COMMERCIAL.


FINANCIAL AND COMMERCIAL.
"WEDNESDAY. Nov. H.
Just one reason and only one-and that Of
no substantial or abiding importance-was
present in to-day's stock market as a cause
for weakness in the general list OF securities.
Such reason was the fear that the Bank OF
England's minimum rate OF discount might
be raised tomorrow and that London
operators might, therefore, in consequence
be sellers of American securities with
sterling exchange offered to-day as 1t was
below S4.S3 in the pound, II Ia clear that the
protective measures. short of an actual
elevation in the bank rate hitherto adopted
by the Bank of England for the purpose OF
averting Withdrawals Of sovereigns from
the banks treasury, have been exhausted.
Gold to the extent of nearly 600 600 was.
in fact, withdrawn from the bank to-day,
presumably for shipment to this country.
Consols and all other securities in the Lon
don market were depressed by anticipation
Of higher money rates. Assuming that the
bank rate is raised, however. and that 1t Is
even advanced to 6 per cent. from the per
cent. rate now prevailing. the matter is one
which has its very obvious compensations
for our market. However looked at. II
Ia a proof of American prosperity. WIN
the exchange market running in our favor
so overwhelmingly as 1t does, our aolll'y
to draw gold not necessarily perhaps from
London, but from some European centre,
is merely a question of our pleasure. Ihe
greatest authorities on the international
trade and financial situation are unit IN
declaring that the debit against us OF some
thing like S4O0, 600 900 on European ledgers
which existed year ago by reason OF our
borrowings in Europe for financial UNDER
takings, has now been entirely cancelled.
We are Europe's creditor to-day, as we have
not been at any time since the fall Of 1898.
Money rates here to-day were unchanged.
Including to-day's shipments Of funds,
about 81, 900, 900 has been sent to the interior
from this side thus far this week. This
will be offset to the extent OF at least 81 0OO,-
600 In receipts Of gold from Europe before
next Saturday, while the shifting Of loans
from banks and trust companies will, proba-
bly,, be as much in evidence In next Sat-
urclay s s'bank statement AZ 1t was last week.
On the other hand, while the money situa-
ton ia not at all troublesome it is in such
state as temporarily to check the support
that important financial interests would
undoubtedly be otherwise inclined to ex-
tend to the market upon the occasion OF
such speculative attacks as those witnessed
in the last few days. That the selling OF
the market to-day was another foray by
the bear party pure and simple Is unques-
tionable. Following up their campaign
Of yesterday in the railroad stocks these
spectllators for the decline assailed to-day
the Pennsylvania and Baltimore and Ohio
shares at the opening Of the exchange
session. lull in the trading at midday
was followed by heavy further speculative
sales OF all the railroad stocks in the after
noon. Nevertheless, at the close declines
in these issues were In most cases less than
full point. In Pennsylvania and Bal
timore and Ohio the decline extended to
2I and ~ points. respectively. While
all this was going on, however, there was
heavy buying of the United States Steel
stocks. presumably in the nature Of the
retirement OF short contracts. The news
that at the meeting of two OF the leading
pools" in the steel manufacturing business
yesterday reports made as to the condition
Of the business did not warrant a reduction
in steel prices moderated very consider
ably, OF course, the enthusiasm Of those
VINO nave TeCentiy DctH IudhlHH CoInIult-
ments for the fall, in unstinted fashion, In
the price OF the United States Steel shares.
The traction shares again resisted the
downward tendency in the market better
than all other issues, and even at one time
advanced to higher figures than have been
seen for them since the manifestation OF
particular strength In this one group Of
securities began in the last week Of Septem-
Der. Some reason for this was duly ex-
planned to-day in the report Of the Man
haitian Railway Company for the six months
ended March 81 last, which, taken with the
report Of the same company as the Man
haitian Railway Division Of the Interborough
Rapid Transit Company for the six months
ended Sept. 80. shows the operations Of
the Manhattan road for the year ended
Sept, 30. The report exhibits an increase
In gross earnings for the year OF 81, ,5s4, ,23l,
a decrease in operating expenses Of Sis .e2l
and an increase in general surplus Of
81 ,397 1888. This Is equivalent to over 81
per cent. on the capital stock Of the Man
haitian Railway Company, the volume of
stock now being $55 200 900. For the same
per cent on only S4s 900 900 Of stock. An
alysis of the statement shows that the
largest gains in earnings made by the system
were during the last sfx months. a period
which is normally the poorest season Of
the year for the elevated system, and it
proves what gains in gross revenues and
economies in operating expenses are now
being made by our local transportation
lines.