The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-03-12
FINANCIAL AND COMMERCIAL.
SATURDAY. March /.

was pretty largely centred in the Eastern
and Southern railroad stocks. The New
-,-I Central and Pennsylvania group
particularly among the subordinate shares
Of these systems, the Norfolk and Western
and Cleveland. Cincinnati Chicago and ST.
Louis socks the Louisville and Nashville,
Erie Southern Railway, Atlantic Coast Line
and Ontario and Western issues and among
tho indurtrials American Sugar Refining
and International Paper were the features
Union Pacific Southern Pacific, St Paul
and in general. stocks Of the old time
granger clasG were left comparatively
alone. although ihr Northern SecUriti"s
shares on The outside mariet rose sharply
ChefapcaSe and Ohio held il, large gain
Of yesterday. to-days explanation Of the
movement being a recurrence Of the old
story. for which no substantial basis has aver
been found Of a suppc Sod plan of coml ming
The Erie Cincinnati. Hamilton and Dayton,
Ptre Marquette, Detroit Souhernand Chesa-
peake and Ohio lines into a new railroad
eytem connecting the Great Lakes with
tidewater The known probability that the
Norfolk end Western common shares will
he placed on a per cent. dividend basis IN
few months was again urged to-day AS
the reason for their advance in price. Other
than renewed circulation of rumor5 10 which
the market has long lcen accustomed.
principally those relating to the formation
Of holding company for the toclS5 of all
he railways compri-ed in the Vanderbilt
system the news Of the day amounted 10
little. The weekly bank statement was
colorle,s affir showing a small decrease
In loan and deposits. a trihing los in cash
and an incr, @ Of little less than 100000
in the furplus reserve. The statement
naturally vas the subject of only passing
comment
Tho principal events of the week ia Wall
Street have been the decision Of the United
States Supreme Court in tine Northern
Securities case whereby, az now eeoms.
the legality Of the pro-rata plan Of dis
tributng the Northern Securities assets
has been definitely established; further
continued and severe reverses suffered by /
tho Russian army in Manchuria, the reduc- !
ton Of the Bank Of England's minimum rate (
Il discount to "a per cent. and the strike |
on the local subway and elevated lines.
or the,e matters the only one that seemed I
10 exercise any direct influence upon the /
stock market was the action Of the directors /
of the English bank in lowering the banks /
dlGcount rate. The Northern Securities
decision was to the effect that had heen /
generally anticipated, and the character
OF the case was such that financial adj
vantages were presented to both parties
to the controversy. no matter what the
terms II the decision might be II is i'm
possible TO ay az this time that he Russian
General in MGnchuria has suffered such
decisive defeat that he cannot gather his
forces together again and renew the CON
test q another place. and vet the Russian
army seems practically demoralized, and
indication are that it can present but
feeble resistance to another Japa-
nese attack The view taken Of
these developments by European fnanciers
appears to be that they make for peace,
and hence although there was some scat
ter>d selling OF Russian bonds during the
week in Paris the price Of these issues re-
manned little changed at the weeks close.
and the foreign markets during the week
were generally buoyant Doubtless the
most important consideration Of a financial
nature abroad recently has been the grow
ing ease in monetary conditions of which
tho reduction in the Bank of England 3
discount rate forms the best possible illus
tration. This rate is now down to the
lowest poin. in seven years, and il would
hardly have been placed there had the
authorities OF the bank been in any fear Of
unfavorable happenings of a financial ma
ture The event served to stimulate a
speculative enthusiasm here that had in
tho fore part Of the week shown some signs
OF Tagging and confidence in the CON
tinuance Of the low money rates that have
held here for months past is now very
strong in the financial district and un
que5tionably constitutes the foundation OF
the current eager movement toward higher
prices. on or before Wednesday next the
national banks OF the country must Of
course pay into the Treasury the
second and final installment of the
Governments call for public money amount
ing in this instance 10 somewhat less than
sl5.oO0,Ooo. II all this sum were 20 he
withdrawn from the New York banks alone .
the country banks, that is, Withdrawing
from their New York balances their pro-
portion of the required deposit instead of .
taking il from their own coffers-it is con-
ceiVahle that the circumstance might cause (
money rates here to stifen. 1t seems
probable, however that a. the country
banks are in such strong condition they I
will take portion, at least of the necessary .
sum from their own cash in hand and the
gain shown by the local banks in their trans .
actions with the interior of the country .
during the week was perhaps caused by .
remittances of money here from interior |
institutions in preparation for the pay
ment under tho Government call. While
the strike on the marlborough lines made a
good deal Of talk in Wall Street 1t affected !
the stock market but little. II was a scat
terbrained movement that had only failure |
written on it from the first
General business improved during the |
week. Tho railroads began TO recover
from the effect Of the recent storms and or
ders for the spring trade enlarged. The .
month Of February was a short month and .
production Of pig iron during il was thereby .
stats ically reduced. but the consumption /
Of iron during the period was at a rate that
would have taken care Of the normal output
Of the furnaces in blast. Production Of this .
basic commodity Ia, in other words, still
below consumption, although more pig iron .
is being manufactured now than ever be-
fore in or country's history. A fall in the .
price OF wheat during the week was attributed .
by most critics to break up Of the opecu-
lative corner in the commodity that has
long been in operation in the Chicago market.