The sun. [volume] (New York [N.Y.]) 1833-1916, 1904-10-09
FINANCIAL AND COMMERCIAL.

cash If te,iss, 800 and decrease in bank
surplus OF S7,278,525. This leaves the net
bank surplus at present ut 81, $780, 900, the
smallest fgures OF the kind reported by
the Clearing House institutions at this time
In the season, with the exception OF three
years, since 1897. That Is to say, the con-
dition of our local banks Is now weaker In
stead Of stronger, as has been the case all
through the present summer. than the
average condition at corresponding dates
In years preceding The reserves OF a num-
her of our large institutions are now below
the legal requirement. AS II In defiance
Of the state Of affairs thus exhibited, the
stock market, which had, previous to the
publication OF the bank statement, been
firm although an unfavorable return was
expected, became very strong While no
startling advances in any particular quarter
of the market were made, the closing prices
Of all the active stocks were considerably
above yesterdays final quotations, the
greatest activity centring In the so-called
Gould issues. 1t has long been matter
or remark that these stocks have not shared
as others have, in the markets advance,
and to-day there was manifest effort to
bring them into line. Missouri Pacific rose
IN points, Wabash preferred ~, st. Louis
and Southwestern preferred ~ and 80 on
Indeed, the price Of all the Southwestern
railway properties rose sharply. The larg-
est advances were made in the Missouri,
Kansas and Texas common and preferred
stocks, which rose ~ and points respect
lively. There are more substantial reasons
than the circulation OF rumors for believing
that the Missouri, Kansas and Texas Rail-
way Company is about to be the object OF
certain financing" and the speculative
argument brought to bear in favor OF all
these properties is that the present promise
of a large cotton crop In the South is greatly
in their favor.
To-day's bank statement was bad, how
ever considered and it should have been
accompanied, logically, by fall in mar
ket quotations. for it points unmistakaoiy
to higher rates for the use, OF money ex-
acted from borrowers on speculative col
lateral. 1t is quite true that sterling ex-
change here .hovers at the gold Import
point and that we are even now importing
gold, by Triangular" operation, from
Australia Our exports Of cotton are un-
doubtedly making exchange very rapidly.
and relief from an overstrained money
situation here can manifestly be had, with
no great difficulty, in the shape of metal
remittances from Europe. But this is only
another way Of stating Chat the money
situation here must be in a state OF COM
parative tension before the relief comes
and that is not welcome development.
Experienced observers Of international
financial conditions do not believe more
over, that the foreign markets. England
especially, will be willing to spare us very
much gold this fall in view of the political
complications, whose menace everybody
recognizes It is true that, as has been
30 often pointed out, a slight advance in
money rates would bring the trust COM
panies and :Ssipiilar Institutions into the
market as lenders, which would have the
effect}of keeping down bank loans and
reducing the amount OF money re-
auired ,,as: reserve against liabilities. But
this would not affect at all the outgo
OF money to the interior which is now
40 notieea,,ly In progress. We we're told
az usual, at the beginning Of the sea-
son that this year for singular and especial
reasons the Western and Southern banks
were full of money and would not need to
trouble the Eastern financial centres for
funds with which to move the crops. Yet
the movement OF money from our city Tor
this purpose has been greater thus far this
wear than it ever has been before, the reason
being Of course, that the high prices of
the commodities that the farmers are
selling necessitates the use of larger sums
OF money to pay for them, and that during
the dull business days OF the last eight
months the interior banks have kept great
share OF their deposits in the Eastern banks,
chiefly in this city, where, in spite OF the
low er money rates prevailing, the competi-
ton among the banks for the possession
of Western and Southern funds has been
acute It has also escaped the attention
of Wall Street, it seems, that within little
more than fortnight $10,0o0,000 In cash
must needs be sent from this city to Cuba
In payment of the bonds OF the Cuban
Government bought by our bankers Ac-
cording to all precedent, the movement OF
funds to. the interior should 60 on for about
two months more and how all this money
drain can proceed, even II mitigated by
occasional gold shipments from the other
side, along with continual expansion
OF bank credits afforded to spectators,
seems a puzzle that makes rather hard
reading. -a..
1t may be that the expected gratifying
tenor Of the Government crop report for
Oct, /, which will be issued by the Depart
nfelt of Agriculture at, Washington at
o'clock on Monday afternoon was being
discounted" to-day in market prices. IL
is commonly believed that this report will
indicate that the seasons corn crop will
not be materially below the Governments
previous large estimate of the corn yield
and that, taken in connection with the Gov
ernments favorable report on cotton
issued few days ago. it will give final
testimony to the fact that our country is,
in, general, blessed with large crops this
year which will sell at good prices On
the other hand, the great rise in the stock
market that has taken place since July
has clearly measured to a considerable de-
gree the beneficent force Of these conditions.
The Union Pacific Railroads statement for
August to-day Of an increase in gross earn
ings of s27o,40S, nearly all Of which was
saved in net, was, Of course, pleasantly
received and taken as n whole the reports,
weekly, monthly and annual Of the opera
tions of railway and industrial companies
that have been published in the last seven
days have been favorable. The reports Of
industrial companies like the Steel Found
ries, the American Car and Foundry, the
Distilling Company and others have showed