New-York tribune., 1903-07-12
Financial.
The Financial World

theFe IS quite active business aeai, - orossn
iaiI IN prices which is making uao,l..,i'ah wa 1
'he drop which took place on the -. sainxot
month That drop, it will be rerpar,ss.f rs q an
On wednesday, and it was follov,nS an.
oOuho which on Saturday had pu, 49, -
10 "here they had been on the satr-ss - uack
Jus since then we have had a SLOW - Hesi
now prices are very close to where tba.-s.' ars
'ne June break A few are below !, q
WITHIN traction or SO Of II; and the q
couple OF points above. Presep, ao'u,
are that next week win see tbi. -, ,e'els
vantage disappear. ami practicable tLa a.
Hst go below tn lowest Of last month aas
Ihe June break was precipitated ~.
tinuous selling of ST. Paul; but VIII. - "a.
erai market was most demoraIizad 80 ssn'
buying of this stock exerte6 cousiderabi. a'ss
ing power. Its low figure was 147ls 'S-
the rebound 1t went TO 154. Yas,arsa--
14412- Quite evidently the stock bo,,nL. Us
big break has been peddIed out since -, ~ =
break Of the past two days has been sp-...~,s e
driving down Now York Central For -
son Central scarcely moved in the I'm .
1t stood quite steadily about 124. ana - ss1t
covery Of the market went easily 10 10
thing has occurred since to make il vuIDa-,..
1t dropped more on Friday. and more - -
yesterday. when it struck I14%
Here was break OF over 10 po,nt. q, -.
days in one Of the leading solid stocks; ana J,
course the effect on the general list v.s
moraIzins as was the big drop in St Paul y.
month. When st. Paul was breakins. thu e..
had it that new issue of stock was cou,..
and 1t was also hinted that the dividend ru,,s.
be reduced-neithel o: which things have -
pened. The Street has t now thar Nau, ".
Central will issue new stock; or viii issue ma,
bonds; or has already. or intends 10 bo-.,-
$1S.OO0.OOO on a IL months note at Der cent
To all of which the officials Of the road ma.
straight answer. that some time later the s,-
pany will raise money for the rebuilding q, h.
terminals In this city; but at this time tbev /,
not even know how much money will have n \.
raised, for the reason that the plans for the nan
terminals have not been decided upon.
The real situation, therefore would seem -
be that in general way it is known that IA.
company viii need to raise not less than rivs.
sum of money. running into the millions, aus
that some people who have the stock have be,
selling 1t. in anticipation of the time when th.y
will be called upon for subscriptions for a usr
issue Of securities; while certain other gentls.
men discovering this have been helping II.
price downward by bold short selling. This
about what happened in Pennsylvania
significant point in the stories circulated
was that the rate at which it was asserted the
borrowing had been arranged for. was usr
cent. Still more significant of the mOnetarz
situation was the assertion in conservative
banking circles, that if the Central did want to
borrow any such sum as $1S.OOOC9O for a year
it would probably have to pay per cent They
did not believe the story at all; but money was
worth that Indeed, It was somewhat doubtful
whether a large undertaking could be finances
at all at this time.
Now If bankers in the best position to know
the money market talk like this; declare thar
money in bulk is worth 8 per cent. and sag
that even at that rate. it is doubtful II maca
can be got together-is it any wonder that u
have declining stock market? Is not ths
state OF the stock market sufficiently accouut1
'or by the exigencies of the money market?
Assuredly there is nothing in the crop repors
he state of general trade. or the railroad can.
ngs, to explain the continuous dropping away
stock quotations. The Government crop repOr
IF Friday was better than had bee, anticipated
and indicates full average yields this season q
all the great staples: the earnings of the raE-
rade is active everywhere. but more particularly
in the West. Nevertheless. every week sees the
stock market little lower than before. with rs
long drawn dullness broken at intervals By
sharp declines. 1t does seem a little odd; but
Wall Street has seen the same thing before.
The explanation would seem to be that hs
money market has given the stock market wan
ng and the latter is adjusting itself to the con
iitiOns as TO which the warning is given When
A long period of expansion, industrial. CONNER
,iaI and financial. reaches the point where loan
abIe funds become scarce. it is the invarable sign
hat the conversion of floating capital into fI4
has reached it's limit; expansion can 90 10
farther There is no more room for new enter
prises, because lOanable funds 10 finance then
are no longer to be had; or. if had al all, only
prohibitive rates of interest. Then the CRY
,eard that we have not money enough TO DO us
business of the country.
This complaint is heard now. Nevertnees'
We have the money of all the world to ara.
Ipon- The Ioanable funds of every ctviilEa
country are just as much ours for this purpos'
Is are those in our own banks. And as mar
er of fact we do draw upon them, and nav
irawn upon them up TO the limit When i1
big boom started, 1t was kept going not aia7
by loans or Investments of home capitalists ".
1y streams of money from Europe. Wnen
asst ali reserves are drawn down 20 daAsa
point no more are 10 be had The more um's
u the more prudent investors call their loaaA
II sell out their investments; and the s'uA
market, being. the most sensitive point. fees ~
process of contraction first We have sem
Europe the past week. over seven millions
money. AS it was not sent as loan. II A's
nave gone tO nav debts
II may be objected that we are doing tas' =
much business now as at any time in the -
-our years. and so there ought TO be as 81
prices for securities. True. but IL IS tns -
hings which make boom. II Is the ne" -
-Oad or extension OF the old one. the new -
ory, the new mine the new farm created -
he waste lands, the new ships; in Woi-'
expansion from the old, which makes the 60