New-York tribune., 1903-08-16
Financial.
The Financial World.

out TO be a determining factor After 5rsss
hesitation Monday morning. waiting Tor -.
Clearing House sheets 10 90 through. which tha.
did all right and no failures being announces
the market began 10 improve. The improve
ment became an upward rush, a reaction AZ
rapid. or more so. than the fan had been; ana BY
Friday. the whole list OF active stocks had
bounded up from six 70 twelve points IN som.
cases the advance was even greater. The shor.
interest must have been enormous.
The covering of this. and buying for long ac-
count sent the market up just about as it haa
gone down that IL. without reaction. From
six to twelve points recovery in five days gave
no time for backward movements After a stsr1
had once been made. the pace continually BE-
came hotter first under the lead Of CANADIAN
Pacific. then OF Reading. followed by St. Pau
and Atchison. and lastly Union Pacific. Yests-.
day the pace sIackened, and the market becans
irregular After the bank statement appearsi
there was enough realizing TO put prices Of
little The statement itself was all right TAsrs
was a loss in cash. but the surplus reserve cen
tinues at the respectable figure of 21 millions Cas
against only millions last year; and there was
| a decrease in loans
Has the situation changed in any degree just-
| fvtnr the rise. or is this only due over
| selling? The situation has changed-in This re-
spect. Concerns which had become too deeply
Il
under, and their accounts are no longer a
/ menace TO the market; other concerns which
/ were also heavily involved. have been able 70
| right themselves, in the more important cases
by private sales OF their securities to those who
! could better take care Of them SO far the
! road that way is cleared. More important it r.
/ that companies which had bankruptcy staring
| them in the face have been saved-at more or
| less cost. 1t seems to be conceded that the Viz
| ginia- Chemical company would have had 10 90
by the board had 1t failed to raise the five or six
/ millions needed; and the Seaboard Air Line
! went to the Rock Island people when il must
! otherwise have gone on the rocks.
1t is easy 10 see that il failure OF corpora
b tions had come on top of failure of firms a very
bad situation would have developed. The diff
I culties in which these corporations were IN
4 volved. and the collapse in the Realty securities
/ largely explains why many firms were talked
i about as being in difficulties Any house which
/ was known TO have the stocks or bonds Of these
/ companies in considerable amount became an
4 object of suspicion; and in the frame OF mind
i people were in. suspicion became conviction.
The concern was was going going to to fail; fail: sur sur
One Of the effects Of the great decline has bean
TO cause extensive Teadjgstments, both q &C.
eaEnts aud properties. " fact, the last SIX
weeks might be described as Pef9d Of re-
L
| the situation Is coTTesponangE eieaTsd; and
to this extent Jussides q recqvsgy IL the WsTkst
The process has been cQs;Iy. There IS some
| unfaYorabIe eonusHt on the fast that the Viz
ginia Chemical company had 70 nay Per gent
interest and 10 per cent bonus Tor lis loan This
has been called extqrlop- 1t does Eat appear
SO, The risk is rot small. and The difficulty Of
II getting that amount OF money al such tine
II EaEy great. Great Inducements had "a be e.
II fsysd. hut without the money the company was
gone. Sixteen per cant was g99d deal cheaper
than a TeGeiversbip- There is FeaseR fqr BE-
lsyiAs thai the spp9paRy BeiG HqFs teaa ~
/ teen per cent.
| on what terms the Seaboard Air Line was
| turned pver to tf1e rocz fsf4n1 are nor krov1
except TO me parties -nesorfatfns enc may -
| Iieved the very shrewd gentlemen Wnor run tre
/ Rock Island OUTFIT raads theff 0vh bargain.
knowing fhe necessities OF TIE ser1er. The road
| could not go to the other Southern lines, ts-
/ cause Of State laws IT had TO so soEheWh5rs
and the Rock Island fned the gap me &c.
sHiFsnlaRt Of tAjs property puts the last touch
of cempleyity on the Rock Island sySleB- a
nap qf that system noE Raqst look Las csazY
gullt
The rapid rise OF the marfsta A h4s 3 alssp sectsd
/ change in the public temper. so that neopls
/ again believe stocks can go up as wer as 60
i down, and even faster, which they had almost
! despaired Of And furthermore. IT IS already
possible again to talk OF earnings and intrinsic
I values, and be listened to. which was quite out
/ of the question when the publication Of good
report was Immediately followed by a i've OF six
point drop in the price OF the stock-as Union
Pacific, for example. II was not earnings. but
bank accounts which were in question.
II the market holds. there viii he talk OF the
amount company is earning on it's stock, what
the B. & o. can show. how much Missouri Pa
cifc. what the surplus over the dividend is IN
Union Pacific; what the forthcoming Erie re-
port will show TO justify the rise in the stock IN
short. the Street Will be talking Of values again.
instead OF apprehended failures
This is a contribution Of no small importance
to the bun side. and consequently factor m
sustaining the advance As 70 whether rae
market can rise further. it may be remen0erea
that in the second week of June il had sIea1
break. the lowest prices OF that week OSi.s
(omitting fractions), Atchison SO. St Pau1 &c &c
Missouri Pacific loo, Erie So Pennsylvania l-''
New York Central 124 (Which in July oroNs "
112). 3. & o. So. Reading 46. Union PaciAc 81
Southern Pacific As. Steel preferred ~ eoll.-' ~
81, Copper 81. These be it noted were tns - ~,
est on a day when the stock market looAsu "a. "a.
going all 10 pieces. Some OF these s'ocAs e.. a..
been carried higher than this level by the fiss
of the past week but Others are we'll below X
and ought TO get back again-whlch Is N0' -
ing much.
Much depends upon the corn crop.
come out with normal crop, and tne sans
Spring wheat. the June prices VIII LOOK ci7aE, -
view of the extensive clearing out and re1D1-s
ment of things which has since taken p'@s9
Wall Street. If the crops turn out l@-.--~
they will not by any means look cneap--'~' y"
need not anticipate trouble. -