Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-10-01
Financial News Letter
By W. G. NICHOLAS.

1
/ By W. G. NICHOLAS
! >>~
| Special Correspondence of The Star
| NEW YORK, September 30, 1905.
With everybody looking for pinch in
the money market the pinch fails to mate
rlailze Money Is working snug but there
appears to be plenty to go around Least
| wise there is a suff1ciency for legitimate
purposes, with moderate surplus avail
dpie Tor SPECTATORS in the stock and COM
monty markets. Most people are seeking
convincing explanation of the unexpected
ease OF the money stipulation. What seems
most satisfactory, is that supplies of cash
are more widely defined throughout the
country than at any time in our national
history. More than ever before localities
| are able to meet home requirements for
| crop moving and business purposes. This
| Is especially true of the west and south
west, which are In a remarkably strong
position. These great geographical Sec
tions are more nearly out of debt than
eVeI before and more Independent of the
| east rms condition leaves New York Bos-
| ION and Philadelphia with larger reserves
IMAM usual for employment at home. The
| real strength of the New York situation is
| not correctly reflected in the weekly bank
| statements. These exhibits do not show
| the condition of private banking institutions
| or trust companies, which in combination
| are Wealthler and more potential than the
| banks included in the clearing house re-
turns. Such houses as J. p Morgan e Co
kuhn, Loeb & Co., Blair & Co. and the
opeyer BROS, each swing enormous capital
anu eiere are dozen other concerns in
New York controlling resources which a
lew years ago would have given them place
| IN the first rank. The capital used by
.hese houses only figures in limited way
IN the statements to which the public has
access. There is In reality an immense
amount OF money available for Wall street
uses over and above that of which there
| IS ohc1al record. The pressure of these
nu.us Upon the market keeps interest rates
WITHIN bounds and gives fair assurance of
smooth sailing around the turn of the old
year.
The import movement of gold is now
under full Roadway ENGAGEMENTS thus far
approximate 100000 and estimates of
shipments during the last quarter of the
year range from 100000 to $4,000. 600
Ihe one thing certain is that Europe is
ready to let US have all we want The
Bank of France has an accumulation of
$6ooOO0.00O in gold and every important
capital in Europe has the precious metal
IN vauit-bursting quantities. These NAM
moth accumulations represent provision
against every possible need which may arise
for account of the several governments
Inc restoration of peace between Russia
ana Japan relieves the international situa-
ton and makes available great stores of
goid which otherwise would be kent in
hanos. Inc money supplies of the world
are still further being fortified nv the in
flow of gold from mines everywhere Ans
traila Is contributing $90,00O,OOO this wear
In gold, South Africa $50 600 600 and fhe
continent OF North America s125, 900, 900.
Australian gold is beginning to come d.
rectiy into San Francisco, and will continue
10 pour into that port for several months.
Inc United States is now receiving from
o ooaginaI sources gold at the rate of $780,
wv week, an infusion which imparts a
comfortable glow to the entire situation.
although It's cause may not be generally
underS TODD.
The basic impulses of the stool, ,,.r,,.+-
are bullfsh although difference of oninion
stlil exists as to the wisdom Of encourag ing
speculation for rise until the return tide
OF money. sets in from the west and south
The funds sent from New York and other
eastern centers into the harvest fields are
sun performing their mission and will NOT
ma their way back in any considerable
amounts for several weeks to come BulIs
are impatient for the return movement TO
begin. but they will have to contain their
souls In patience and await the operation
through this way about the middle of No
vember, the attracting force being the need
of collecting funds in New York for the
payment OF Sloo'0Oo,00O in dividends and in
terest on and about the LIST of January.
The steel shares have for some time mast
been leading the market in point of
strength. There Is greater activity in the
common shares than In the perferred. but
for the latter steady and growing invest
ment demand is the feature. The insiders
of the big corporation have been increas-
ing their lines of preferred, and confidently
nxyya1 H. -@D ayx
next few months and remain on that mini
mum level until the time arrives for an
other upward movement to $50, which
might be fair price for a permanent per
cent industrial. The minor steel stocks are
also strong for the same general reasons
that influence the securities of the greater
corporation. Speculation In railway shares
is being earnestly directed into the low
priced issues. Less money is required to
finance trades, and the argument is used
effectively that there is a greater chance of
profit than in the standard stocks, most of
which have made phenomenal advances
during the last year and a half.
The iron and steel boom promises to run
on forever, or at least to become chronic
situation. The uses to which the metal Is
being put have multiplied SO marvelously
that with all the increased facilities for
manufacture productive capacity continues
to be taxed far beyond it's limits. This is
true In almost every branch and depart
ment of the great industry The output OF
the United states steel corporation is at
present in excess of what the entire pro-
duction of the United States was few
years ago and the giant company Is extend
ing Its business at a terrific rate. With
every mill in the country working at high
pressure it is impossible to fill orders This
is particularly true with structural iron
and steel and in every large city of the
country building operations are greatly en-
barrassed on that account. In no conmu-
nifty Is this fact more apparent than in
New York. where hundreds of buildings
are dragging along weeks and months be-
hind time because of the Inability of manu-,
facturers to deliver material. In some in
stances stupendous building operations
which were to have been launched ere this
have been held in obeyance until the pres
sure on the mills relaxes somewhat.
Mr.. Frick himself is said to have suspend
ed plans for large buildings because he
knew 1t would be impossible for him to get
his iron and steel for many months to
come. In some quarters this action of Mr.
Frick was construed as meaning that he
expected to get his structural material at
lower figures by waiting. and some of the
bears in Wall street promptly sold steel