New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-10
Financial.
The Financial World.

Itself. The recovery has been irregular g.
stocks have got back to where thew fan -
and some have failed TO do so; but one faat,,-s
or the week was an accession of actfv,tv 1,.s
rising quotations. in a number of special+i.
such as Chicago Terminal. the Mexican stocL
and some others The bulk OF the weeks To-.
ing has been in Copper Brooklyn Traction ana
the Steel stocks; with ST. Paul Pennsvlvar,,
New York Central. Southern Pacific and INT
Pacific as good seconds. 1t will be seen f,o
this that the market retains It's narrow and
professional character; In other words, IL ia,
traders market pure and simple To all An
pearanees 1t will retain this characteristics sor
some time.
MOST or the little ups and downs OF the weex
nave been worked on war news. or alleged news
On one day. was actually decIared-fro,
San Francisco. The declaration was good ror
ten minutes in the trading and was then apolo-
glzed for Yesterday. the cables had a mora
peaceful look; Japan would still negotiate (pena
ing the arrival Of her recently purchased war
ships and subsistence stores): Russia would still
reason; also the bank statement was fairly good;
so there was some stfrenfng Of prices The com,
ing week has fair prospects for some further h,,
irregular. advance; unless the guns begin TO fire
which is not likely 1t is the rule that when
markets have declined in anticipation of a. war
the recovery begins when the guns open: bu.
there are exceptions to the rule. The Roer war
was ole The market had it's worst tumble then
on Buffers defeat at Colenso which made a
small sized panic. After that. the upward move
ment was nearly continuous
Still the question continues to be asked-hov
will this country be affected If war does come,
and still there seems TO be much uncer.
tainty as ever. even IN the best informed quar-
ters; the reason being that the scene Of possible
conflict Is remote and the conditions obscure
We shall export more products than ever ia
one common assertion. But what products,
Note what the Japanese ambassador at London
said the other day-that he was overwhelmed
with offers Of contracts for the supply OF MILL
Ions OF tons Of food supplies; but none were
wanted, because the japanese soldiers lived on
rice and dried fish. This. by the way, is sug-
gestive OF what may happen when they run I'D
against men who can devastate a shoulder OF
mutton for lunch We may sell some canned
goods to Russia: but certainly not wheat, and
Japan does not want wheat either The action
OF the cotton market shows what Is thought
will be the effect Of war the cotton goods
trade-it slunped. Just as IL was expected to do.
Wheat. IT is true. advanced; but there Is a
strong bull speculation starting IN that: and the
bulls say IL will go UP. war or no war on the
statistical position. One OF the leaders predicts
that there will be more fireworks" IN the
wheat market than there has been IN the cot
ton market.
Perhaps. after ALL the only disturbances thu
war may cause here. will De financial. II Rus
STA has to borrow. the borrowings will be done
in France: and this would certainly cause a
heavy withdrawal from the London market Of
French credits. which are said at this time to
be very large. London being drawn upon would
draw upon this market. Our securities would
come back. and gold would go out This is 10.
a too pleasant prospect for those Of our rail-
roads who still want to borrow. and most %
them do. Everybody seems TO want to borrow
Just now. Even Cuba Is here with trf4s Of
a S5 million loan for army purposes; but since
the original provisions for devottng some OF tna
proceeds to agriculture. and TO taking care OF
present outstanding obligations. have been
stricken out OF the law. IL there was any chancs
for the loan before. this action about destroys it.
So this particular loan may be counted out
1t is pretty safe 20 say that at this time thsrs
are two things which are giving our fnancisrs
and railroad capitalists. cause for considerable
anxiety. One is. the financial situation as COM
plcated by the big borrowing demands referred
to; the other the Northern Securities case in
which an adverse decision threatens to bring
about very confusing conditions in the relations
OF great railroad systems since there IS scarcely
one which could not be proceeded against as
having acquired control OF other roads Elm re-
straint Of trade" Hence It is difficult TO get
much encouragement now IL high banking CIR
cles "a bull MARKET No. There are too many
obstacles IN the way" This is the tenor Of all
the replies.
A bright spot IN the situation IS the way rail-
road earnings keep up. They were expected to
begin decreasing before this. but they do not
and the trafic men report no falling OF in sighs
which amounts to anything. They say there Is
less business than a year ago. but the lessentns
has been only sufficient to keep the lines fres
from the costly and troublesome congestion
which so bothered them last pear. Expenses
are being cut down. and large Improvement worls
deferred-the latter necessity from the state
OF the bond mRrket-but all equipment is ruIly
employed The last monthly report Of ths
Southern Pacific is a case in point The gross
earnings continue their regular increase, but the
great expenditures for improvements have been
cut down Consequently. the net earnings make
q much better showing than they did The only
question IN regard TO this great property Is, when
will the managers think 1t judtcious 10 begin
paying dividends.
1t was significant that the Steel stocks had ma
movement which could be attributed to ina
formal publication OF the annual report. or to
the passing of the dividend on the COM
mon The years earnings footed up 'h'
closest possible to already published estl-
mates and the other was accepted as =
matter of course. Everything. therefore. haH
been discounted. All that appears new In the
report is a five million charge to depreciation ~
the value Of goods on hand-apparently. soods
contracted for delivery with a proviso that th'
purchase price should be the market price AS
the time delivery made. The surplus ZOE