The sun. [volume] (New York [N.Y.]) 1833-1916, 1904-10-02
FINANCIAL AND COMMERCIAL.
SATURDAY. Dot.

plus reserve of $9337 900 II leaves the
surplus reserve at si9,9i3,l25, as compared
with a surplus at this time last year OF, In
round numbers, $l4, 900 900, and of u surplus
six weeks ago of $5S,813O75. The Satur-
day bank statement il not now In Wall
Streets eyes, or rather, in the eyes Of specu-
iators in Wall Street, matter Of any i'm
portance whatever; principally because
money can be borrowed on call at per
cent. and "over the end of the year" at 81
per cent, and because the weakness Of ster-
ling exchange indicates that gold imports
In case OF any advance in money rates will
afford a means of relief. Gold imports, how
ever, never Kept alive a speculation that
was tagging because Of scarcity Of money:
and the comparisons Of the bank return
just noted are worthy Of fleeing remark.
They show that the bank surplus has d.
unfinished, owing to the coincidence Of an
active demand for money for speculative
use and to the shipments out Of the city OF
money on large scale for the pur-
Ipose Of moving the crops. with ra-
pidity that is almost, II not quite, unpre-
cedented: and that this diminution Is
now going on at rate which makes
the comparison with former years much
less fiattering than 1t once was. But
little time ago the reserve was over s3s ,0Oo,-
900 In excess of what 1t was a twelvemonth
before: to-day the excess is but about
81, 900 900. Usually, bank reserves touch
their minimum about December /. With
two months more of loss in cash and an
increase in loans at the same pace as that
which has been recently kept up state OF
affairs would prevail that would hardly be
called nice by anybody in Wall Street.
OF course this pace will not be kept up,
for, as money rates rise, the total of bank
loans will be reduced by shifting good
many OF these loans to the shoulders OF
trust companies and similar local lenders
while, moreover, foreign money will be put
out here,son large scale. Even so, the
prospects, not pleasing. 1t is said that
the s or g. per cent. money market which
may cons is not a matter that should
trouble anybody. and the fact is recalled
that some of the most active periods OF
speculation for the rise in Wall Street have
been. accompanied by money rate ruling
even higher than the figures quoted. But
there is one phase of those occurrences
which reminiscent optimists forget to
state. 1t is, that at those times business
In the country was booming and that its
as to stimulate and support in the strongest
way the enthusiasm of Wall Street over
higher prices for securities; and even so.
tight money soon brought the stock
market TO grief. To-day the huge e1-
pansion of bank loans, far outrunning all
previous records, has been caused almost
| solely Enthusiastically by advances to specu
\ iators on,the collateral of stock certificates.
II there is wide revival in business, with
4 it's peremptory call for the use Of funds,
these loans must be cut down; and II this
revival is not experienced Wall Street
win once more hear sadly told the story
Of the house of cards To-day's bank
statement, it may be added, was disappoint-
ing in this respect: that so large a loss In
surplus was shown despite the known
fact that money belonging to European
bankers was lent here during the week
very freely and was even forced upon the
market. Indeed. the chief responsibility
\ for the great cheapness Of money at this
centre recently has been laid by many
i competent authorities at the door OF foreign
banking houses. This indicates that the
speculative borrowing that is going on is
greater than appears on the surface.
The stock market to-day, though some
what more quiet than Yesterdays, was no
less strong, and the closing prices of all the
prominent stocks showed gains. On the
curb market Northern Securities stock
again advanced vigorously. which had the
effect of stimulating the Union Pacific
common shares on the Stock Exchange;
but these shares were. on the other hand.
subjected to the drawback OF not very
favorable criticism of the Union Pacifics
plan burdening itself with the purchase OF
the Alton preferred stock at "a after it had
lost, as is now understood, the control Of
the Alton property. The notable rise in
Northern Securities stock in the last few
DAVIS is now said to be due to the currency
given to a r,imor that "a "only SIS, 900. 900"
4 stood between the parties at issue in the pres
/ emit Northern Securities litigation, 1t was
4 fair TO assume that the pending lawsuit was
on the way to an amicable adjustment. The
story does not on its face, seem to have
any plausibility whatever. What caused the
4 great struggle in the railway world, which
Il led to the formation Of the Northern Securi-
A ties Company, and which is now going on
4 In another way has not been dispute over
SIS 900 900, or even a much larger sum.
i but over the possession Of the Northern
Pacific Railway. There are no signs
yet that the controversy is ended or
Is in the way of ending; and il it was
A sadjustedr privately by the parties in
interest, law suits over the points at issue
would undoubtedly be begun by other
litigents. The great differences concerned
must come to a court settlement The
only other matter to-day that engaged
interest was the report Of the New York
Central and Hudson River Railroad for the
year ending June 80, which indicated more
clearly than have the reports OF many
other great railway systems for the fiscal
year what the railway lines Of the coun-
try have51iad to struggle with in the shape
of increased operating expenses, The
New York Central cut down its expendi-
lures for maintenance Of way and struct-
ures, and only increased in a small way
the money spent by it for new equipment;
vet its expenses increased over 81 800 900,
Of which much the largest item was the In
creased cost of conducting transportation.
As the gross earnings of the company
only increased s78,4+353. net earnings de-
creased nearly $2225.OOO The reflection