New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-02-01
finanriaI.
The Financial World.


tons seem to have reached sort Of equilibrium;
and equilibrium is the negative of activity. Mo-
ton ceases at the perfect balance This means
for the commission houses-nothlng doing The
large operators seem to have drawn off: some
because they are waiting certain developments
at Washington because they have
schemes in hand to bring out later: and in the
of one, Mr.. Keene, because he has been
sufficiently under the weather indspose him
for business
This is not condition peculiar to Wall Street.
The cables say the London MARKET is as stag
nant own: and the arbitrsse houses hav.
almost gone out of business. Both markets
have TO be at least fairly active to enable them
to do their International sealping.
In this state of things money, OF course. ~
pilng up i'm the banks. With speculation tor
pid, and no bond market-for the investing
classes seem to be neither willing 70 buy nor
sell-the demand for money has slackened; and
lenders have to make corresponding concessions
to borrowers. The banks were ioaners OF sew
eral millions Friday at 31a per cent. and the
rate got below 3 before the day was out.
Yesterdays bank statement shows the surplus
reserve TO be somewhat larger than 1t was
the same week last year and the year before
1t is, naturally. below the figures Of preceding
years best or worst. known for lack OF business
activity; when. of course. the demand for money
10 move commodities would be as small as the
demand on the equipment of the railroads to
carry them. 1t would appear that the Penn
syivanias So million loan is more or less re-
nected in yesterdays statement; otherwise II
is not easy to understand the large changes in
the loan and deposit items.
II is generally understood that while the loan
was made at Az per cent 3 per cent is allowed
on balances undrawn. The company having inn
mediate need for but part Of the total, II pays
only IL per cent interest the portion left
with the banks subject to it's call II cannot
be said that the news OF this loan transaction
was very well received by the public. This
was shown by the way the stock sold.
The fact is the public staggered by the
magnitude Of the borrowing. coming right on
the heels OF the 80 million issue made for the
great terminals in this city: and coupled with
the announcement that the stockholders would
be asked TO authorize a doubling of the whole
capitalization of the company. The things
came fast each other that very per-
ceptible tone Of alarm was observable ir the
comments of spectators and investors alike
rs the company going to try TO do everything
at once?" was the usual form Of dubious in
quiry.
We have it from the highest authority in TIL.
company that there is absolutely no other
course to pursue than move along the lines
laid out although 1t may temporarily deprsss
the market price of the stock. The Pennsyl-
vania system is not only unable to properly do
the work which the public is pressing on il, but
it is becoming more That is. the growth Of
traffic on the system has become greater than
the increase in means for carrying it: and this
growth is increasing. The public demands that
this increasing work shall be done with the
highest efficiency. To meet the imperative d.
mand capital expenditures on a scale corFc-
system. have become absolute necessity. II
the market price of the stock suffers temporary
", in the end the stockholders will get the
benefit While the dividends per cent. it
must not be forgotten that valuable rights
will come with the new capital creations
In the Erie issues the buying has been NOS.
observable in the first and second preferr~G
stocks which have been boUgh. in q way in
dicative Of a desire to set the stock with the
least advancement in price. The common has
been good deal manipulated, without giving
much sign of eventual direction. The December
earnings of the company we're fully Up to sntlei-
pations showing a very heavy comparative in
crease gross and net over last year, and being
at a rate equal TO dividends on the preferred
stocks and about per cent the common. II
is claimed that such increases will continue
be shown in the manning months OF the fiscal
year.
A considerable advance in the price Of Della
ware & Hudson stock. and the evident desire
to take all offering. has last started rumors
that it has something to do with Erie One
looks askance at these. since ID. & III. has been
manipulated several times before a food Of
deal rumors. In former cases however. the
Street has been so flooded before the stock went
up. This time not word heard. and il
was only the way the stock was bought which
finally set the traders to specializing on the
causes; of vhich-a sufficiently sound one
is that the earnings of the road have been very
heavy since the resumption OF coal mining
All question-if there was any question
whether the Union Pacific dividend was was
be increased, was set at rest by the deCls-
ration Thursday of the regular rate of Per
cent, semi-annual 1t would of course. have been
very agreeable to stockholders to have received
more; but every reasonable man must agree
that the time inopportune for an increase
talthough the earnings warrant it,. wien Ia Dor
is in such state OF unrest in the L. T. terri
tory. The earnings there. and the stock
holders will get them eventually; nevertheless.
the labor situation is unsatisfactory. and it viii
take time TO straighten IL out which generally
means cost also There vas much hasty selling
of the stock on Friday. Omaha dispatches
which seemed to Indicate general strike COM
ing. The stock found good support, however.
The traction. stocks have been weak since the
reconstruction of the Board of the Brooklyn
Rapid Transit. though this may have been
coincidence rather than d consequence With
Mr.. Winters assumption Of executive ecntrel,
vice Mr. Greatsingsr, Mr.. H. H. Porter may hs
said to be to the front, since Mr.. Winter Is his
nominee. He is moi street railroad man. his
railroad experience having been gained on che
Northern Pacific and other lines; and he has