The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-09
TEE FINANcIAL sfTUATIoN.

was still upward, but it was also clear that
this rising tendency vas checked for the
time being by the counteraoting forces
OF high rates for the use OF money and
uncertainty as TO the outcome OF the labor
dispute in the coal fields. Transactions
on the Stock Exchange were the largest
and prices we're the strongest on the first
day of the week. Thereafter the market
backed and filled with an evident tendency
toward q contraction of dealings and a
slightly lower range OF values. So far
as the difficulty in the bituminous coal
mining sections was concerned it did not
amount to much from a stock market
point of view. The fact that so many
operators in that territory had signed
or it was known were likely to sign an agree
ment to pay their workmen under the 1908
wage scale, which represents a slight adj
vance over the current rates, and also
that such a large number Of
mines would continue their full production
made it manifest that while there might
be some relative scarcity in supplies Of soft
coal there would be no absolute shortage
therein and no resultant material injury to
general business interests. 1t would be the
best thing, of course, if there we're no coal
strike in any part Of the country; and yet
those who should he best informed about
conditions in the soft coal trade say that the
root OF the difficulty there is that the
trad is suffering from overproduction and
that 1t is impossible to frame a uniform
scale Of wages by which all producers
OF soft coal should pay their men. II
this is the case the adjustment that has
been made of the difficulty would seem a
very fair one, as the price of soft coal will
no doubt be raised somewhat, so that even
tually operators who have closed their
mines will dispose Of their unsold stocks
of coal at a profit and then may desire to
resume operations. Other operators who
by reason of the existence of profitable
contracts with various consumers arc
anxious to work their mines at an increased
cost are allowed an opportunity Of doing
30. In the anthra cite district the situation
appeared to be still unclarifed at the end Of
the week. The operators are to make
answer to-day to the proposition of the
miners that all matters in dispute shall
be submitted to arbitration, but from I'M
official statements that lave been put out
it does not appear probable that the opera
tors will consent to n arbitration on
the question of making a forced collection
at the mines out Of the wage of the miners
Of the dues owing to the local labor unions,
as this procedure would. in effect, establish
a supreme control of the labor unions in
mining matters and make the mines CLOSED
shops Moreover. the operators seem
inclined to take the stand that they do not
propose to be continually called upon to
rearbitrate matters that IA We once been
arbitrated and settled. Nevertheless, Wall
Street still holds to the opinion that either
there will be no strike of anthracite miners
or that il the miners do leave their work
will not do so for a very long period.
Public opinion is plainly that the demands
made by the miners are of totally in
admissible character, and a strike which
does not have the sympathy of the pub
lie enlisted on iIs side is foredoomed
to failure. Moreover, the anthracite opera
tors have a larger supply Of coal on hand
than has ever been known in the history
of their business.
The first matter of interest in the financial
during the week was, however, the
in the rate for the use Of daily borrow
ings OF money on Stock Exchange col
and az this advance in rates was
carried to high figures and was altogether
unexpected both by bankers and specula-
lors, it sufficed to stop the rise in the security
even if it did not produce any very
notable decline in prices. The call money
rate Of 20 per cent. on Thursday and Friday
was the highest rate paid for money in
April since the year 1889, and while in the
earlier part Of the week time money re-
NAMED easy Offerings Of funds for long
being, in fact, made on Monday
below ) per cent it later on stifiened de-
,idedly. Every one had considered 1t
probable hat for two or three days around
he first of April the money market might
Je in a state Of strain owing TO the prep
lrations of the banks for the disburse-
nents of interest and dividend money
on that date. But when the first
laws of the week passed and the April l
disbursements were completed, and the
strain upon the market was not only
Indiminished but increa sed. it was evil
lent that there were other reasons for
money ~stringency besides those pertaining
,%ondholders and shareholders. There were
,everal especial" explanations for the
strength Of money which. although they
we're not WITHOUT sOIHt weight, ulu NOT |
recount for the high rate charged. 1t was
,aid that many Of the country banks and
,ther out Of town institutions, seeing that
he tendency Of money rates here was
oward a higher level, had sent in orders to
heir agents here having the care Of their
unds not to loan money except at high
'ates. and thai this neceSsitated the calling
If loans by these agents; and it is also proba-
BE that, inasmuch as a call from the Comp
roller of the Currency for a statement OF I,
,ank conditions is due now at any time.
he banks are all anxious to be in a posi-
TO make good showings Of cash on
1t was admitted that an enforced
borrowing by the city of New York Of
Is. COO 600 to meet maturing revenue obliga-
ions had something to do with the strin-
;ency. The financial authorities of the
ity could, no doubt, have renewed these
Maturing obligations at a rate of interest
lightly higher than that previously borne
" them, but this they were naturally I'M
Wiling to do. An arrangement exists, as
8 not generally known, between the city
authorities and the great banks with whom
he municipal funds are deposited whereby