The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1903-02-15
LIVESTOCK MARKET STAGNANT.

In the treasury grows 10 difficulty every
year with the growing scarcity and aug
mynted price OF government bonds, upon
which all measures ~ relief depend under
The device Of purchasing government
honda az premium N the open market has
GENE 70 cause a dlspla cemeut OF bonds de.
posted to secure circulation thus operating
to contract the circulation at ono point IN
the proportion II l. Expanded az apothet II
is With great relief therefore. that thr
financial world secs the prospect of the de-
post Of government surplus funds with
banks % ~ per cent Interest 10 the secuti'
" OF State, municipal and approved rail
road borfs The removal Of the Inhibition
agFiust deposits ~ customs receipts with
the banks Is also calculated 10 be OF special
heneft 70 New York hanks as the bulk
Of tho customs are payable ~ this port.
The making available of the bonds To- bc
issued for the construction Of the Panama
notes and government deposits is an addi-
ticna factor for expansion Of circulation,
But this promise OF alleviation OF possible
mercy strlngency again this fan may not
poste side For one thing the payment OF
100000 TO the Panama Canal company
shareholders and of SloOoQ.0OO to Colombia
must he provided for In the case OF the
passage OF the Panama canal bill. II Is not
considered probable that bond issue VIII
he authorized for this purpose, In view Of
tho large current revenue surplus enjoyed
by the government The accumulation OF
an additional cash balance In the United
States treasury IN preparation for thes.
payments or a withdrawal Of government
deposits with banks is therefore Indicated.
The adoption this week of tho require
mcnt by the New York clearing house for
tho additional cash reserves on trust COM
panies clearing through that Institution.
calls attention TO another phase OF the
financial situation last fall. The pressure
for credits and the withdrawal or deposits
for circulation, II will ho remembered kept
the clearing house banks near to their legal
reserve limits and materially expanded the
gtanI lie hn sNN1t %.
serve maintained by tho trust companies
was on deposit with the clearing house
hanks and the reserve Of those institutions
therefore constituted the ultimate reserve
for meeting demand requirements, not
only from their own depostors. but those
Of the trust companies and banks away
from the reserve centere. This weeks nc
ton by tho cleeling house formally con.
dennis the conditions or last fall as un-
sound. A conformity with the new re
quirements calls for the accumulation Of
companies by June l, next; ~ per cent
by February / next, and 10 per cent ny
June l, 1904 II s reported ny authorlue e.
in the Foreign exchange market that many
millions Of obligations 30 foreign lenders
have hcen paid on since January TINS
correcting the over.eNtenslon Of credits IN
that direction which loft the local money
market vulnerable 80 calls There rs eYi-
dence In the bond department or the St"cF
exchange that bold underwriting syndicateS
witch weathorcd the stress ~ last f1ll s
money market have been marketing their
holdings, the market price in one instance
running four or ave points below the syn
dicate subscription price TO the bonds. The
recupera ton Of the financial position thus
Vnriously indicated may be matter OF IN
crease OF confidence, but It gives evidence
of the diversion Of resources released By
the rehux Of funds to other purposes than
stock market commitments, and may help
TO explain the quiet stock market New
requirements for credits are largely shown
also The railroad situation plainly re.
quires the employment OF additional capital
TO handle the volume Of traffic onering and
70 avoid freight congestion. The loan OF
nearly S4O00o,0O negotiated by the Penn
sylvania road To push It's bettermenr work
and the decision Of the Erie TO Issue $40 &
OOO.oo0 bonds and to authorize S4oOpOVp
more, are concrete examples Of these needs
which arc likely TO be repeated in other
cases The present ease In the money
market is taken ADVANTAGE OF for these
various purposes TO the detriment OF the
ovaiIahle supply Of funds for stock market
The movement Of bond prices has been
Irregular this week and the principal nc
tlvity has been In speculative issues IN"
large dealings IN st Louis aud san Fran
cisco Funding As wore attributed 70 ~"
dissolution OF the underwriting syndicate
United States Be, coupon, and new As, reg
istnred declined u per cent the ,od As
and Is ~ per cent. as compared WIN inc
closing call q week ago,