The Washington times., 1903-10-31


the prospect of a bad bank statement.
The fact that the new bonds of the
Pennsylvania Railroad We're over-sub-
scribed four times is Significant to the
money and stock markets. 1t indicates
that the fiotation of the securities was
not really an adverse influence, as first
believed. but on the other hand. created
a favorable impression.
The opening OF the market was the
tamest in many months 1t was obvious
that nobody cared to deal until some
thing was known about the bank state
ment. When this was published at 1880
O'Clock trading became more active, and
prices advanced.
A special dispatch to Mcintyre & Mar
shall. Of New York and Washington.
announces the London money market is
feeling strong pressure from Egypt
and New York. Should this continue.
the cablegram sets forth. it Is probable
the open market discount rate will ad-
vance per cent. and perhaps higher.
Activity in the stock market is not
likely to be resumed for several days.
While the shipment OF money TO the in
terror and distressed communities has
not had a serious effect on the market
the trading element seems inclined to
transact business on narrow scale for
the present.
Rising money rates are viewed differ
entity by borrowers and lenders. To the
borrowers it seems extortionate if not
malevolent misuse OF power. To the
latter the higher rates for money seem
a benevolent act. adopted for the pur-
pose of making both domestic and
foreign markets tributary 10 needs OF
their ct,-ytemers.
Everybody" said a local broker to-
day, seems TO be waiting for the market
to go down, and perhaps that IS reason
enough why 1t shouldn't go down. The
shorts are afraid to sell any more stocks
and are hoping the market VIII break
20 that they car buy back the stocks
they have already sold. and those who
feel bullishly inclined are waiting for
price recessions on which TO 90 long Of
stocks Those who do not come under
either of these heads are waiting for the
election. and there you are.
New York ought to feel proud of the
/ fct that its financial strength is the
backbone of the financial situation in
this country Indeed. IL is the main sup
1 port Of the general indust.trs-of the
United States. and. despite the fact that
New York is the point where the heavi-
est payments are made to the Govern
ment on customs and internal revenue
] account. also the point whore require
ments for speculation are the heaviest.
| It has always been able and always will
/ be TO send funds to the South. West.
East. and North. to say nothing of ex-
porting goldN to Europe when the fo~-
eigners need the metal.
The fact that large amounts OF bonds
viii be put out for improvements at
this time is not well received in some
quarters. but many good judges accept
the action by the companies as an in
dication Of an improved investment mar
ket and confidence in high railroad and
| financial circles in the stability of the
/ general situation The demand for bonds
has shown wonderful Improvement in
J the last two weeks. and it is thought
! likely that other railroad companies will
/ feel justified in continuing Improvement
work through new issues Of bonds or by
the sale of bonds already authorized
The most favorable feature OF the gem
J - "a SiendNlDi at BIrStIit tONSlStSs as. IL
/ has for some days. in the weakness OF
foreign exchange. due to the offerings OF
commercial bills drawn against pur-
| chases OF cotton made By foreigners at
| the ruling high prices for the staple.
There now seems to be little doubt the
/ seasons cotton crop will be less than
last year and will be marketed at "A price
! considerably higher than seemedi prob
/ able a few months ago. The trouble
about all this is. however. that the Aasi-
ness Of financing the cotton crop at
these high prices is thrown upon our
own shoulders until such time as by
pure main force we can compel the for