The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-10
THE FINANCIAL SITUATION.

A1nk WON VI Oh7ANAO hbhV NoANN 1890
a financial point of view, il was not until
toward the close of the week that any OF
them seemed to influence prices in the
stock market in any degree. There was
no break in the story OF mercantile
and industrial prosperity in every quar-
ter OF the land, the sole complaint
heard in business circles referring to the
difficulty Of getting sufficient and efficient
labor. OF matters directly affecting the
security market last week first place must
he accorded, Of course, to the Presidents
annual message 10 Congress, and yet the
message was 80 in accord with previous
antioipations OF its character that it was
utterly without influence as a market factor.
The general expression OF opinion heard Of
it in Wall Street partook OF the rather faint
praise that il was the most conservative
document OF the kind ever emanating
from the present Chief Executive, although
no little disappointment was expressed
that the President did not urge with greater
force the necessity Of passing a currency
reform hill at the present session Of Con-
gress. Prospects for the passage Of such
a measure are now admittedly less bright
than they were a few weeks ago. The
sensation caused by the failure Of the
powerful G~uggenheim interests 10 exer-
cise their option to purchase what was in
effect a controlling interest in Nipissing
Mines stock belonged really to last
weeks dealings in the financial district.
although the news OF Inc decision Of the
Messrs. CugGenheim was made public in
the week preceding. No clear light has
yet been thrown upon this extraordinary
affair, and so far as has been made known
both the title to the Nipissing mine and
the character Of the mine itself stand as
high as ever. There are some reasons for
believing that. the throwing over OF the
option in question. even although il in
volved a heavy financial loss, was deter
mined by other considerations than those
to which ~sllusion has been made. II has
become evident in recent weeks that the
craze for speculation in mining stocks both
in the curb market in Wall Street and
throughout the country was assuming I'M
desirable proportions, n il is entirely
probable that financial powers OF high rank
in the country were not upon second thought
an xious to openly figure as backing such
a movement. The advance in the dividends
Of many of the Vanderbilt railways and
the proposition Of the Atchison directors to
ask their stockholders TO authorize an
increase in capitalization in the sum OF
nearly tlOO, 900 900 were little regarded, nor
was any concern manifested over the widen
ing circle Of demands for higher pay and
shorter hours OF labor OF many organiza-
tions OF lahoring men. Such is the rush OF
business throughout the country that en-
ployers would in most instances gladly pay
the increased wages asked il they could be
certain that IL would attract more men 10
their mills and mines and would result in
getting the work don that is TO Re done.
What finally affected the market in the
closing days Of the week was obviously
the unrelieved pressure upon all speculative
ventures for the rise in stocks of high rates
for the use OF money. The rate OF enewals
for bank loans OF call money on the floor
Of the Stock Exchange advanced steadily
zach day during the week until 30 per cent.
was asked and paid in this way on Friday.
1t became known that English bankers had
notified borrowers here hat about s2j, 900, 900
Of loans maturing on January 1 would not
he renewed, although il was manifest that
the foreign monetary situation had greatly
improved and although sterling here be-
came so depressed under the high money
rates as 20 afford superficial indications of
a resumption Of the movement of gold from
England TO this side. What these money
rates are can best be judged by the fact that
on Saturday one OF the leading national
banks Of the city made a loan OF $50 ,OOO at
2 per cent for ninety days upon the security
OF the 1 per cent. bonds Of the city Of New
York. This, II must be confessed, rather
disheartens hopes OF any great relaxation
in monetary conditions after the beginning
OF the new year. Losses OF cash by the
local banks during the week were such as to
result in a diminution OF the reserves Of
the local Clearing House institutions in the
sum OF ST., 265, 80O. bringing the hank surplus
here TO So, 1902 IT'S below the legal minimum.
II IL undoubtedly surprising under these
circumstances that the security market did
not decline last Friday and Saturday more
than II did; but the market was buoyed up
by a strong impression that the Secretary
Of the Treasury would loon effectively come
to the relief Of the money situation. The
Secretary's Offer made earlier in the week TO
pay in advance SI2 900 900 Of interest money
due on Government bonds in the first two
quarters OF the coming year was held 70 he
an extension OF a very small amount Of
help indeed, since the money thus dishursed
nv the Government would be scattered all
over the country and was not to re dis
Eursed anyway until some time hence. II
ia a matter OF common knowledge that nj
some time previous to July l arrangements
must be made for refunding the $40 900, 900
Of Government 4 per cent. bonds due on
that date, these arrangements also neces-
sarily including the paving of Of a con-
siderable portion Of the bonds in cash. No
one would be surprised il plans of this
nature should be announced by the Govern
ment at any time. 1t is to be remembered,
however. that the execution OF such a project
would dehar the Treasury from extending
any relief 10 the money market for some
time thereafter and that il it is meditated
the Government can hardly contemplate
IN the meantime any large ont and out
deposits Of public money with the national
inks.
IL is easy to see, taking n review Of the
entire situation in Wall Street az il has
existed since the first Of September, that the
security market there has been during this
period in a state of deadlock. Although
fluctuations in il have often been active and
~ :oa,onoaa haa ring upon the mn riot ha ,a