New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-08-30
Financial.
The Financial World.

II the big men of the Street desire as n ,,
said they do that the market shall remain opia.
at this time. they had their desire the past week
1t was quiet enough to suit anybody Bushes,
fell to merely nominal proportions Thurssa,
was about the poorest day Since then there
has been slight improvement. which was a.
companied by stiffening in quotations.
The cause of this was. apparently the An.
nouncement of Secretary Shaw that il the cror
movement in the next two months should drain
the bank reserves so far as to threaten troubls
in the money market. the Treasury would put 44
millions into the banks &c relieve the strain
This sum is available from accumulated internal
revenue receipts. The Secretary is expected n
be willing TO take "municipals'' in place OF Gov
ernments. for security.
1t may be that not dollar Of this sum viii b
deposited. or need to De; bur it being ready 80
wanted. is the important thing. Because OF thu
Secretary's offer. bank managers will not in az
probability. depart from the line Of policy thew
have already determined upon for the fan ana
early winter months; they will simply regard
the Treasury help a sort Of reserve forca
only to be called upon in an unexpected emsr.
gency. Therefore the loan rates are not uksly
to fall appreciably. nor lOanabIe funds flow mora
freely from the banks than they are doing now
The sentimental effect OF the offer OF the
Treasury is to relieve the Street OF the anxist,
which has been felt. and rather acutely, as 10
what going to happen when the banks
were drained down by the crop movement IN
few weeks. it has been argued. the banks VIII
have to call loans severely TO meet the western
Withdrawals; and then, what will happen 20 a
stock market already weakened and made
nerveless by the occurrences Of the summer.
More liquidation and perhaps additional fall
ures. by concerns barely able to weather tbs
last storms?
The answer to this is that 40 millions are IN
waiting to NIL the depleted reserves. il needed;
and such as this is equal TO all require
ments, assuming that the bank people continue
the same conservative policy that they are now
pursuing. The Street. therefore. sees smoother
waters ahead than it did
The stffening Of quotations since the an
nOuncement of the Treasury Department was
logical consequence. After the bank statement
appeared yesterday, the market came to a firm
close Loans were increased and deposits still
more; but the surplus reserve remains above
20 millions. as against less than 10 millions in
the same week last year. and Is millions the
year before. This would seem to make the pO-
sition of the banks a pretty sound one.
Let it be assumed. then, that the danger OF
severe money squeeze during the crop movement
is averted it still must follow that the future
of the stock market must turn mainly the
crop yield. Corn and cotton are the uncertain
elements now. The wheat output is already
pretty we'll known. As both and cotton
are late and an early frost is the danger which
everybody seems talking about, it is possible
that the stock market for a while viii Be a
weather market, that is, that the weather re-
ports will influence speculation in more than
ordinary degree, and that the speculation will 30
limited anyhow
If he b1II
ron 1nust reach a crisis before long What COY
ton remains unused of the old crop is apqar-
emily entirely controlled by the bull clique, wr1
make the prices for it, and have been able II
carry it with surprising ease The supreme test
will be applied when the new crop comes pour
ing into the market; which, In the nature OF
things, cannot be far on
Among the few features OF a dull week, there
NAV he mentioned the easy way in which Union
Pacific recovered it's dividend on Friday Ihere
was not a great deal done in the stock that day
hence it might fairly be inferred that the stock
is getting little scarce in the market after the
late extensive liquidation in it. II viii not be
forgotten that the recent publication OF the an
nuaI report. showing earnings Of about 10 per
cent on the stock, the signal for sudden
and determined attack on it, which sent down
the price with rush from 40 to near o.. This
latter price was made the Sth inst fester-
day it was above -. ex dividend OF per cent.
Generally. the market shows that the recent
liquidation has had some effect In making
comparative scarcity Of those railroad stocks
which had the worst pounding They are, tenn
norarfIv at least. off the market. There is also
tendency observable TO speculate more IN the
low priced stocks, as Erie and Rock Island.
rather than the higher priced ones; although as
a fact. many Of the latter are intrinsically much
cheaper at current quotations than the others
In the lndustrials, there another spasm
Of lIouidation in Realty preferred; due. 1t was
alleged. TO more margin being called for on a
large loan in which this stock figured as cor
lateral The Steel stocks have been compare
lively neglected. Debate is revived again IN Re-
spect to the payment of dividends on the COM
mon. The next dividend is not in doubt; ru'
the price OF the stock is pointed TO as PROOF tna
r. will not have successors. Nine times out OF
ten. the argument Of the tape is conclusive
4 per cent stock quoted about % would be con-
sidered to have virtually announced the passing
Of it's dividend. the formal announcement beng
received later as a matter of course
There are. however. exceptions-just enough
TO prove the rule. These exceptions are TO %
found in the Industrial list. When Sugar slo'A
was new to the Street, it often sold az a pr'C'
which. with railroad stock, would certainly
have presaged a reduction OF passing OF dlvl-
dend Nevertheless. the company went stFalsH'
on paying its dividends; and the Street was 80
scepticaI about these being paid from ac'U@
earnings. that it only believed IT after IL was
proved that the company was not only not
borrower of money, but actual Lender o.
very considerable amount. II may be said OK
the Steel stocks that If the argument OF tHs
tame is good for the common stock, 1t IS equa'''
good for the preferred stock and the nonoS -
With the ; per cent bonds quoted ABOUT o..