The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-03-08
FINANCIAL
IN|'..|E|WSI,0|Fl'|yQE /: ] /: |
Stock Conversion PldnOfSteel
Trust Put.lnto Effect.
WANTED a CURRENCY BILL
Wall Street Would Have Welcomed an,
X Extra Session Of the House as Well a
As Of Senate. Sentiments
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4 (spectal ID The Times. nlspatch)
NEW Z 8 h1, March 1.-THE nnnounce.
tn,ent OF the decision Of the directors Of
< The United states Steel Corporal ton to
but the stock conversion, plan Into effect
WAS tho feature Of tho devlopmen Y OF the
week In industrial quarters. Tho inser-
lion Of the clause prohibiting tho nstitl,-
ton OF legal action II tho case OF default
III Interest unless such default sha last
for Il period or two years was an error.
pf Judgment that was quickly apDrcciat-
5rd BY enemies Of the new bonds. Tho
Il Impression prevailed In certain quarters
that the insertion Of this clause was an
A bdrnIsson Of weakness on tho part OF the
Steel Trust officials. The reason for
X It's insertion 1t was sta ted, was the de-.
Z Sire Of the bankers to tide over T. period
OF dullness which might he encountered
In the steel trade. 1T was believed that
\ by Inserting such 8, provision the default
Z hf tho payment OF the coupons OH the
!. bonds for one ycar would carry the COM
I,any over into a more prosperous season.
such a condition Of affairs, however.
would mean also that during this time
There would be no dividend declared on
Tho preferred stock. @
Tho improvements announced BY the
\ United states Steel Corporation while
discounted by previous publication IN
part, assume gigantic proportions when
Assembled. AS presented by Chairman
Gary the programmo is attractive to
y reholders--an expenditure Of {S5, V9.-
+ 6D1 IN additions and Improvements with
+ p resultant Increase OF earnings and cav
4 ing In the cost Of production Of si2 00o, cog,
b remarkabl return from the investment.
5{a$sf RIC, &RC)RROWINGS. 3SJ5t A
The vast sums OF money which the
Steel Corporation and the great railway
companies arc preparing to spend IN I'M
proyetmerits Is a pretty good Indication
y that tho shrcwdest financlers III the cotlti-
try believe prosperity will last some time
and the expenditure OF these scores Of
millions OF dollars In tho employment Of
I labor ana tho purchase OF material will
90 tar toward insuring the continunce Of
prosperous conditions. It is, however,
Unfortunate that the bond Issues which
are made necessary by these improve
,nents should be placed on the market at
Il time when the money market Is In such
EtstriEgent condition, sa$j$
Ef Tho extraordinary borrowings Of rail-
roads during the past few months have
played an important part In the monetary
sltuatio and have done much to pre-
vent banks from recovering from the eff
fects OF lie usual autumn stringency.
Thc new stock and bond issues recently
authorized amount to more than D,oop,
rO; this estimate Is made without taking
4 into consideration the proposed sl0. co.
4 700 increase In the capital stock of the
Pennsylvania Railroad. which will ms
brs,t nor does 1t include the. large issue
THAT will be made necessary BY the Rock
lslands acquisition OF the st. Louis and
ban Francisco road. tt is safe to predict
that with the improvements, extensions
knd onsolidatlons planned by the large
trunk lines. the amount OF securities that
will be issued during the first half OF
the year will reach the unusual total OF
}GoO. 0lo. 600
h, WANT LEGlsLAT1ON,
The close OF tho recent session OF Con-
gress was not marked by the feeling of
relief that the financial community usual
~ displays when the lawmakers depart
from washington. On the contrary wall
Street and indeed business generally
would have welcomed an extra session OF
both houses In order that something 4
might be done to relieve the money mar
ket The defeat OF the Aldrich bill
handful OF Its opponents In the Senate is
a. keen disappointment to those who arc
acquainted with the delicate position OF
the money market. not only IN New
York. but in every large city In the Unit
cd states. It was taken for granted a
week ago that this important measure for
financial relief would be passed during
bion and the failure of the National Leg
1slaturc to accede to the demands Of the
business interests of all sections OF the
country was therefore the moro eXas-l
peratlng. At present there Is no imme-
fliate relief III sight for the strained con-
HItIon Of the money market; the prospects
for the present month are not reasHuring.
March has always been q period Of de-
creasIng reserves, and this year the ull-
procodentcd JOSS OF cash In February has
placed local banks IN a position where
they are not AS well prepared as usual
to withstand the drain. Vi
4 Currency shipments TO the Interior have
again run we'll ahead of receipts. and a
largo additional loss must conseq uently |
DO expected from this quarter. This Sc
we're drain upon the markets. active capi-
tal was naturally reflected IN the week
Joan transactions. \ number OF matur-
ing time contracts We're called IN during
the week and tho banks as a rule refused
to renew for less than't6 per cent, The
stringency was felt toBa less
extent In call money, but this class OF
funds were bid for at q minimum at 4
per cent, throughout the week. S.
SENIlNlENT STILL BEAR1SH.
Gold exports from this side ara now out
Of the question and the course of the ex-
change market indicates that sterling
loans in large quantities are being nego-
tiated here. Tho large increase In I'M
ports Of raw material, shown in the for
eign trade y statement, proves that our
home market is still onr! largest customer
and that this domestic consumption is
proceeding at a. rapid rate.
Notwithstanding the general market
1ecllne and the fact that 1t has continued
now steadily for several weeks, senti-
ment In Wall Street Is still distinctly
bearish and the belief seems to he that a
lower range OF prices viii be .seen before
the spring rise sets In, This belief Is
based wholly on the unfayorable money
developments and the congested condition
Of the bond market, d The condition Of
the money market might be viewed with |
but with reserves now down |
Is the lowest figures at this time Of year
A1,A r,,o takaa m a MIRA SariotlH a snNck |