The sun., 1905-10-29
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~ y orufo srtioua udi.tu.u ~ .ifpturi tr
lNiiou' 'hnu etrn W. thru.uti. . dt,.., .ntI..
Woh' regarding II ttu.I.t pfr ui ftIIiU.N
hulldiut Iho luprrffluu Nta u. W.
llfffiuHH ~ fro iiuu u. he .rtrtvI.t vt8
s'Il arrrtrn'I No \ ruili'uu. . uiui vIrtu
htrtwcn'e nnd urgnlIt'rou4 ,pnh ir urHu
hN"'iirr. VhercIs VI iill u ,di.iilnr l.a
orr"non' iudl,r'cd mt hr htd nIlIsbi .ui
tho hnlo pu,uiuu. iu,luduM. iru p,u,a,uurr.,s
~ 'trtv rossihlr moND. rul $50. rtrptt.d
~ meet fra,ilia tlr hnd dcfrntrd itnttiwnu
~ oNotN wu,' w. ihp Nrtihrtr sr.urIir4
ninlior nnd nni d",rlal ad u trltnr 'rvttd
hia ruitsouia' uhirh hnttrtrd nu ,tu,uwr
y "ur If't"' r,p'uaauI u o.. Il.,.'
NJ" had h""n s.trcd ur ", Iln,tu.w ,0r.
ni"1s 'h'm" HNd fuuurl H., Iiill et.iI lIna'
iho l'''t ln'"utf,iua 'ha tratl' ~ Nro uihol
The street u,rl 0l,nrt,lll, iuol, N tla bat
10 iho toul lu N'utrittu smoothing rud WcUulur
W'N'h maintained tho rtiur " that sr,utliy
NJ rrr'liorl', ~ lhrhrsi tccrri uout ~ taco
n t"1r'ionnrr toudon', 40 M" general
lis' md pronounced vcH',uo~e M spnc uiIot
s'wks which had loutcd mrgc M l,pncos m
tho rnst week ~ two. \ ,uouiithutfut fnciur
~ the strength uf this security Vua uudutlh'
"dlv the t0putt that the t"Ictnl Muiuu aud
Sm"liinr COMPANY, witch Through Sn"ltcts
Securities IL controlled hy American Smclt
ins and Refining had secured for s1 600 poO
Nlcn" country. making thcs" tntorcals
supreme in that region. Tho nrrncss n
the stock was taken IA u strong Indication
oi public con nfdcnc" cnRcndcrnd 10y the almost
uninlinR regularity with which predictions
as to price movements have "mnic good
since largo interests IN the company first
began to advise purchases at figures very
much below the present lovcl, The stock IA
undoubtedly TO very large extent in the
hands NJ those represented in the board NJ
directors and Of their close friends. so that
the floating supply in the street IL quite small.
Some prominent bankers take the ground
that the postponcment of the RUSSIAN loan
does not necessarily imply n hardening of
none" rates or the continued need on the
part of the great European banks to retain
large cash holdings in preparation for the
event. The removal of issue OF the loan to
later date Ia even expected TO work he
other way by permitting such loosening of
funds as will ease money 40 as to limit the
drain on this country at least until he return
flow OF currency sent out for crop moving
purposes assumes considerable proportions.
The belief is even expressed that the pro-
posed loan. which was largely for the rebuild
ing OF the navy. may never be issued. as the
Cars Government may decide that the
present time is too unfavorable for the rails
ing of money which after all is not needed
immed ately.
The break in METROPOLITAN was on a re-
newal Of the attack which had proved sue
cessful earlier in the week. The ostcnsble
reason for the selling was simulated alarm
over the Hearst candidacy for Mayor. and
stories of the extent to which the labor vote
would be thrown for Hearst Were passed
around with telling effect. But apart alto
gether from political considerations. it is ur-
doubtedly fact that liquidation has been
in progress for some time. and result
of this selling the floating supply in he Street
was probably quite large before the recent
attacks by traders created something of
short interest. Questions as to the value Of
the guarantee of dividends under the lease
to New York City Railway have also revived.
One very favorable factor. however is fur
nished by increases in earnings. which have
been well maintained since the beginning
of the present fiscal year. and this inspires
the hope that the company may yet increase
its bus ness to such an extent as to insure
continuance of dividends without any assist
ance from the gtarantors,
Little or no realizing seems to have been
attempted in Norfolk and Western since the
declaration of the increased dividend, and
the belief prevails that with the return of
settled conditions az to money aud inter-
national affairs this stock is likely to work
up to higher level. The company is enjoy
ing very considerable prosperity. and the
increasing popularity of Pocahontas coal
tends to keep tonnage well up to the roads
capacity There Is no necessity on Norfolk
and Westerns part to solicit business, and the
only anxiety felt by operating fIlcials con-
Germs ability to handle the volume that comes
to their line without any solicitation.
A member OF a prominent Stock Exchange
house says: Il am told that in France bonds
Of the Russian Government have been made
the basis of credit on which business in the
republic is TO great extent being carried on.
As understand it. French holdings of these
securities do not represent the surplus funds
OF the people, as In too many cases manu-
facturers, the commercial classes and even
the peasantry have mortgaRed their prop
erty to purchase the bonds. which they then
placed with the banks as collat eral for loans
to within comparatively near the market
prices. As a result. am told. the banks hold
lar ge amounts OF the bonds, and the declnein in
prices may cause the calling of loans with
serious disturbance to the business situation.
Prices have been artihcially held up by bourse
re equations. which practically prohibit short
selling, but fear that unless n change for
the better soon appears in Russia financial
conditions in France are not likely to i'm
prove may be misnformed in this matter.
and in any event there is the consolation that
the volume Of our securities held in France
ia comparatively small, that financial
trouble there would have only an indirect
effect on our market We can sympath ize
with the French, and the feeling will be all
the purer because we are not directly con-
cerned.