Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-10-11
BULLS AND BEARS

1 - - !. - ~
| NEW YORK, October 11-As an addi-
/ tional argument for a somewhat different
| relation between banks and trust compa-
mics on the question Of reserves the Wall
! Street Journal says:
THE trust companies of Greater New
| York hold only about s27 900 600 in cash.
| although they have deposits of over $1,100.-
| 100000. while the clearing house banks. with
deposits Of s1.O59. 100000. carry reserves of
| s2G9 100000. If these two classes. of insti-
! tutions are to be brought together into one
| institution under rules which will enable
| each of them to carry a satisfactory
business, 1t will be necessary to settle this
| question of reserves. Either the banks
holding the reserves OF the trust compa-
| MES must increase their proportion of re-
| serve against deposits or else the trust
| companies themselves must increase their
cash hand.
"One thing is very clear the enormous
growth OF credits in this city as a result of
| the remarkable growtal of the trust COM
panies has led to copdition in which the
| actual amount of cash held as a reserve
| against these credits has become a matter
! of very serious Importance. 1t Is possible
| that IN the progress of time and with i'm
proved methods of banking in this country
1 banks can do business with a lower per-
| centage OF reserve than has hitherto been
| necessary
But as things are now. with the banks
| and trust companies generally having in
! terest on their deposits and going extensive
| Iy into financial operations, there should be
| no reduction in the amount of protection
winch is AFFORDED by reserves. The con-
| clusion Is plain that there must be in some
| way an increase in the proportion of re-
| serves in the city of New York. Even in
| England, where the conditions are some
what different than this cor
| is for larger bank reserves
|
Dick Brothers & Co. say:
| 1T Is the relief from high money rates
that is helping the market and encouraging
new bullsh activity. 1t is by no means
| true that the danger of money fiurries has
| passed, but there seems to be a distinctly
| better feeling to the money situation
both at home and abroad. Having seen s
| per cent money, Wall street will consider
per cent call rate relatively low and
therefore 1t may not interfere with further
| bullfSh operations"
Some very heavy earnings have been re-
ported by the Pullman company the last
two years. Since the last melon was cut
the surplus has been increasing in a graft
flying manner, and it is now rumored that
| an extra dividend of 30 per cent will be de-
| clared on Pullman company STOCK at the an
| nual meeting on October 49, 1t is said that
out of a surplus of over s21 .0O0, 900 the COM
pany has banking balance of not less than
So, 100000. Nothing official can be learned
at the offices of the company here.
X
While the enormous outlay incident upon
| the conversion of the motive power and ter
minal changes of the New York Central has
greatly increased the interest-bearing in
l
view with satisfaction recent reports of the
increase in both gross and net earnings Of
| IS, LOG. 296 for September making the total
S62 SIT coo for nine months, against $57 49,
600 last year and So, 464 600 in 1902. This is
| an increase of S.S5 per cent over year ago
| believed that the earnings of the system
will exceed all previous records.
-
Some idea of the crops this year and their
| commercial value can be obtained from a
| comparison with the situation of eight or
| ten years ago. The wheat crop this year
| is in excess of 675. 100000 bushels and prices
| are around So cents bushel. few years
| ago the crop was about $500, 900, GOO bushels
| and prices 20 cents and below. The present
| corn crop is placed at 100000, 600 bushels
| and Is bringing 43 cents and A cents a
| bushei. while few years ago the crop was
| less than 1000 600 bushels and prices We're
|
| Tilden once said the time would come when
| the country would need most of its wheat
| crop for domestic consumption, but its corn
crop would swell to 3,000.000.000 bushels
| AS wheat exports running only 1,000.-
600 or 100000 bushels week, and the
| present crop comes within short distance
| of the large total predicted the far-sighted-
| ness of the observation is self-evident.
\
After the annual meeting of the stock
| holders of the Wisconsin Central in Mil
! waukee yesterday the following semi Off
| cial statement was made:
New and strong interests have come into
| the Wisconsin Central property. No change
| is intended in the plans or policy of the
| company. On the contrary, the company
| will be enabled to push Its plan more Wig
| orously. Two changes have been made in
| the board of directors to give these new in
| terests representation. Newman Erb of
| New York and G. M Cummings, president
| of the United States Mortgage and Trust
| Company of New York, the new mem
! bers of the board of directors. Among the
| largest stockholders present at the meeting
| We're Newman Erb and Rudolph Kleybolte
| of New York"
Rumors were current in local financial cir
| cles here that q new transcontinental sys-
| TEN will be formed with the Erie railroad