Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-17
Financial News Letter
BIZ W. O. NICHOLAS.

i AAsSAASASSA q
z By W. q. NICHOLAS.
W,&%xe@xexxeSxxRRxxxx x~Hsss4 MN
Special Correspondence of The Star.
NEW YORK. September 16. 1905.
After being in eclipse for couple OF
weeks those much-advertised "underly-
ing conditions have been much in evil
| dence IN the recent past. The moral effect
/ OF the Importation Of little gold the first
| Of the week was most salutary. The
| initial transaction may have been forced.
but Its effect was to open. the eyes of the
| public to the fact that the gold supplies of
| Europe were easily available, and that un
| limited metallic money can be had almost
for the asking So much had been said by
market oracles about narrow banking re-
serves and loan expansion that many peo-
| pie began to have serious apprehenslons
| lest there might be actual scarcity of funds
between now and the end of the year.
Much stress has been laid on the claim
that there might not be enough money to
| finance the heavy end of the crop move
ment and leave anything for the specuIa-
| tive markets-in other words, that stocks
of money and credit were insufficient to
| simultaneously finance bull stock market
and the rush shipments Of grain this fall
[ this, of course. In addition to normal de-
mands for business purposes. Apprehen-
| sions were also felt of large Withdrawals
| against the deposit account of the Japan
| csc government In American banks. The
ease with which gold can be brought from
Europe to supply any deficiency which
| might arise was Illustrated in the moder-
ate shipment from London to New York,
engineered by a big speculator who hap
pens to be at the head of foreign ex-
change house OF itself and standing alone
on its own feet the transaction would be of
small consequence. but as timely object
t. f,,1,n 81
| market tonic. of which there was urgent
need, and the elixir administered at
| the psychological moment. An honest diff
ference of opinion has existed among bank
ers to whether not there was any real
danger of money stringency, but the fact
that time arrangement could be made two
| months into next year at per cent tended
to allay alarm on that score.
Europe has been very coy in the matter
of extending financial favors to the United
States. Rarely at this time of the year
has the short interest in exchange been
as small as now. 1t is quoted also that of
the $12o. 100000 to $50, 100000 of American
money sent to Europe subscriptions to
government loans, in payment of the Pam
anna canal and in tourists expenses, almost
nothing has come back This line of action,
or rather inaction, only postponed the day
of settlement, however, for the time must
arrive when the old world will be
/ obliged to pay for the cotton. grain and
provisions drawn from this side. 1t will
be seen. therefore, that this country is
SO situated that it has only to express
our way which Lazard Freres set in mo-
ton.
There is plenty of material upon which to
feed bull enthusiasm gluttonously. The
country is especially fortunate in having
bumper yields of every kind of grain and
bounteous production of nearly everything
that comes from the SOL, even cotton pan
ming out better than had been hoped for.
The mercantile feeling throughout the
country is healthful and buoyant; man
ufacturing is a, high pressure, building
opera tons in nearly every large city are
on a great scale. the mining industries
booming and there is every possible assur-
ance of record-breaking earnings for the
next fifteen months. The gold production,
estimated for 1900 of fully $40J,00O,OO0, is
practical guaranty that there will be money
enough to swing the worlds business with
out check or inconvenience. This enor
nous gold imitation will carry with it n
corresponding volume of paper money and
credit expansion. The mighty forces are
seemingly all working for higher prices.
Where the end of this unparalleled infia ton
will be is hardly given thought. While
everything is booming the whole world has
money, but no time for bad dreams about
the cold gray dawn of the morning after.
X
Eugene Zimmerman'ss Cincinnati, Hamil-
ton and Dayton-Pere Marquette combila-
ton of railroads in Ohio, Michigan and In
diana has been sold three or four times
during the last couple of weeks. AT
time it had been taken over by Erie. Then
Pennsylvania and New York Central bought
the system for joint account. George Gould
| nod rJ,a
chaser, and Louisville and Nashville was
identified the real buyer. At last ac-
count gossip favored the New York Cen
tral-Pennsylvania suggestion Ever since
Zimmerman Fred Prince and Newman Erb
effected their combination Zimmerman and
Prince have been hawking the property
about trying to get rid of 1t. Erb found
early opportunity of cutting loose from his
two associates, and for several months has
been doing business largely for his own
count He is supposed to have big finger
in the Wisconsin Central pie. Erb is very
adroit and successful railroad promoter in
his peculiar line, and generally succeeds in
landing upon some substantial buyer any
| and every kind of old junk he can get hold
Of Pere Marquette his last conspic-
uous success, and Boston capital carry
ing the load. Eugene Zimmerman seems to
be principally f1gurehead. Whether the
New York Central and Pennsylvania have
really taken the white elephant off the
hands of the Boston-Cincinnati crowd is
only a surmise, for nothing positive by way
of confirmation is given out.
| Col. w. G. Green has had another pipe
dream. This time he imagines he has sold
little Mexican railroad to the Rock Is
| land system. The colonel telegraphed the
| dream on from Mexico and it was prompt
| ly and emphatically denied by the Rock
Island spokesman, who characterized it as
absurd and utterly without foundation. BY
he have
| again struck that wonderful placer mine of
| the colonelS.
CUMBERLAND, MD.