The sun., 1903-11-22
FINANCIAL AND COMMERCIAL.
SATURDAY Nov. ii.

Quotations for nearly all other active shares
were practically unchanged from yester.
days final figures, prices in some instances
showing very small advances and in Others
equally small declines. The days trading
was extremely listless and presented few
features worthy OF comment or almost OF
notice. The rather surprising calling OF
bank loans yesterday and the marking up
OF rates for call money to per cent In
dlcated rather plainly that to-day's bank
statement would not be as favorable as had
been expected in the early part Of the week.
These premonitions were justified by the
bank return, which showed loss in cash
by the banks Of over 81, TOO oOo or 5000 900
more than had been calculated upon; q
decrease in reserve Of So ,747 500, leaving the
bank surplus at $3,911 $50. as against S6,-
Iss, ,425 last week and $40 ,529.975 last year.
Speculators for the fall were inclined, II
anything, to take profits upon the publi-
cation of the statement, as they judged
that there had been accomplished by 1t no
more than an evening UP OF the somewhat
too favorable reports Of bank conditions
last week and the week before. The reason
for the calling OF bank loans yes
terday was the subject of much mys-
tifcaton yesterday afternoon and to-day.
various theories were brought forward to
account for it, of which the one that ac-
quired greatest prominence was that GER
tain banking interests were accommodating
foreign exchange in preparation for the
Government remittances of $4,000 900 later
on to the French stockholders in the Panama
Canal Company. 1t will be many months
before the Government will be called upon
mt ,f hn
Panama Canal matter; but there has been
a good deal Of investment by our bankers
recently in thirty and sixty day bills OF
foreign exchange, the idea being, OF course,
to resell the bills as demand exchange
slightly before maturity. The low price at
which long bills of exchange can be bought
and the high price at which demand ex-
change can be sold give unusual chances Of
profit ON the transaction. The effect Of
this on the local financial situation ia to make
an additional call upon the cash held by the
banks. At the present rates for the use
Of money, too, the trust companies are loan
ing money heavily and are withdrawing
their deposits from the banks for the pur-
pose. This, in turn, forces contraction of
bank loans. Agreement Is almost univer-
sal In the banking community, on the other
hand, that the movement OF funds to the in
terror for crop moving is practically over,
and that the return flow Of funds may begin
at any time. The arrival Of 50, 100000 in
foreign gold at this port to-day will, of
course, cut a very respectable figure in the
bank statement next week, and these cash
additions will be swollen by the receipt of
several millions more in gold before the
week is out.
The cold weather which spread over the
country in the last four or five days has
been regarded joyfully by merchants and
others to whom the regular occurrence
of seasonable weather is always an ad-
vantage. Another very favorable develop
ment has been the ready acceptance of the
wage scale reductions by the employees
in the cotton mills in Fall River and
in similar manufacturing establishments
throughout New England. large advance
in pay was granted TO these men few
wears ago when the cotton manufacturing
business was extremely profitable. With
cotton at the present exceedingly high
prices the mill owners, of course, find sales
II cotton goods difficult, and, indeed, find It
i-.,possible to continue business save at
heavy loss if their employees pay schedule
remains unaltered. A curtailment of this
pay was therefore directed, and the en-
ployees Immediately and clearly recog-
nized the justice Of what had been done.
While what happened at Fall River is
perhaps an extreme instance, it must
be said that it Is fairly characteristic of
the way wage reductions are now received
in the country as a whole. The cutting
down Is bei:g & accomplished with very
little friction, far less. anyway, than was
predicted by pessimists few months ago,
and the reason for it is simply that the
laboring men Of the country realize that
read justment in business Is proceeding
and that they must stand their part in it.
Regarding the iron market, on which every
body's eyes are fixed, it cannot, perhaps,
be said that there is general confidence that
the low prices for iron and steel products
have been seen and that a turn for the
better in the trade has clearly arrived.
But in the Western part Of the country,
where whatever business slackening there
is has been less than in the Eastern portion,
all reports are that there is brisker de-
mand for iron and steel than there was a
month ego, while in the East what pro-
ducers call more inquiry" has undoubt-
edly developed. 1t is the expectation of
most good judges of the situation that after
Jan. l railroad requirements for iron and
stool will make themselves felt in no small
degree. Some OF the railroads are in
cned to hold back their orders, but the
great mass of the railroad corporations in
the country are viewing the matter in
broad light speculative understanding in
Wall Street to the contrary notwithstand-
ing. Our railroad managers generally feel
that they are not without some responsible
il les Just now. All last summer and the
year before they obtained from the steel
producers rails al SIS ton when they them
selves could sell their old rails for old iron
AT that same price or even at higher figures,
and when the steel manufacturers might
easily have demanded S35 or SIS ton for
new rails. Vt would lie with rather poor
iaee tina, these railroad managers would
ask for any great concessions in the price
of soei rails now, and they appreciate the
fact. The upshot of the matter will almost
certainly he that the steel producing inter-
csts will make IA slight concession in prices
of s,eel rails and that at this price the rail-
road companies will make contracts for
new material with free dom. The wise
and friendly tlisDoSit ion of the rairoad