The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-03
THE FINANCIAL SITUATION.

The stock market last week so far as
prices were concerned maintained its place
in the same narrow range that it has done
ever since the first OF September. A de-
clining movement that had gathered some
small Roadway at the close Of the week
preceding was carried a little further on
Monday, but was checked on Tuesday by a
sharp upward reaction. Thereafter the
market ~iuctuated irregularly without either
decided evidences of Liquidation or OF re-
newed stimulus on the buying side. 1t
was OF course realized bv speculative in
terests hat the week was more favorable
for inactivity in market ventures than
ANYTHING else. II was a period broken by
a holiday, while coincident with the end
OF the week came the end of the month
financial settlements, warranting the fair
probability Of a furry in money rates. The
session Of Congress, too, and the Presi-
dents annual message to that body we're
close at hand. 1t must he SAID that there
was rather less than the usual amoun Of
anxiety felt in Wall Street regarding the
effect from a financial point of view of any
deliverances that the Chief Executive might
make in his yearly outgiving to the national
lawmaking body. General anticipation
Wdt lIdt Ibc IlCfbukc WOuhN NV hNthN AA
character from foregoing u%tterances Of the
President, to which people are o well
accustomed. Stress was expected to he
laid upon the Presidents familiar propa-
ganda for the establishment of an inherit
lance tax and the enactment OF laws
directed in various ways against corporate
power, as well as suggestions concerning
the proposed reforms in the currency sys-
A.. - .hsr .,AasItaa and an
forth; but il will be a matter Of surprise
il the message contains anything likely
either to materially depress or improve
stock market valuations. The shocking
railway accident on Thanksgiving Day
was certainly in a broad sense a market
factor, since it resulted in plotting out a life
that had long been and was likely to be for
many years to come Of incompatible use
fulness in the business and economic world.
The smallest portion Of the real work lone
by Mr.. Spencer was in behalf of the Southern
Railway Company, great and fruitful as
these labors manifestly were. He had
for years done more than n other one
man toward the general upbuilding OF
the Southern country and his advice and
counsel were more keenly sought in the
great problems Of trunk line manage
! ment than were those of any other railway
manager. Moreover, in myriad ways
through speeches, magazine articles and the
like, Mr.. Spencer was, as were few other
men, teaching the people OF the United
| States to think wisely and justly on eco
nomic questions. 1t will he hard very hard
indeed, for any one TO take his place.
As was the case with quotations for stocks
40 II was last week with the money situation;
matters remained practically unchanged.
The strong feature Of these affairs is
lust now the continual improvement oc-
curing In foreign financial centres. The
Rank OF England il making great strides
toward the replenishment of its reserves,
II indeed it cannot be said that the proper
tion of cash held by the bank against liabili-
ties Is not already as large as should be
expected at this season. The banks state
ment last week showed an increase OF SlO,-
600. 900 in its reserve, this i~ngather:ng
OF cash being due partially to the con-
tinually heavy receipts Of gold from the
South African mines and partially TO the
more liberal policy recently adopted by
the Bank of France in regard TO its retention
Of funds. A necessity still exists, it seems,
for the shipment Of money from England
TO Brazil in connection with the yearly
movement of the coffee crop from the latter
country. But it In clear that the inflow
Of money into England during many weeks
to come will far more than counterbalanc
anv outro of funds that may take place. AT
home IL seems as IL for fears regarding
any acute or pressing money stringency in
the near future had been substituted an
impression, or at least a suggestion, that
monetary and busin ess conditions in our
country were such as TO insure generally
higher rates for the use OF funds throughout
the first six months OF next year, at least
than has recently been popularity calcu'
lated. 1t will be extraordinary IL after
the first week in January a portion. at any
rate, Of the large sum of money taken from
the Eastern cities in the last half Of thu
current year does not return there anc
bring about some relaxation in the price o.
current funds. II such relaxation does
take place it also appears entirely reason
able that there should be a corresponding
advance in the price OF securities, since i
IL perfectly obvious that the prevailing
desire of financial interests, great and small
ia to buy rather than to sell stocks. Ye
il must be admitted that firmly maintained
money rates at the present time OF between
a and eHl per cent. for a year and sil
months use, with higher rates for shorte
pc RODS, does not look very much Xix,
prolonged monetary ease even after tn
January disbursements are over. No
has there yet put in an appearance an!
such improvement in the bond market
owing to the customary anticipation a
this time by investors Of their receipt o
January interest and dividends, that or
dinarily betokens that willingness on tbs
part OF people to make investments which
alone can be the substantial foundation
for any general or permanent advance il
security prices. A feeling it can hardl
be called a conviction gained ground
therefore, in Wall Street during the wee
that business in the country was bein
conducted on a scale OF such unparaliele
magnitude that unless some letup in
was TO occur no particular or long cor
tinued alienation of present condition
in the money market could be anticipated
What appeared to be, therefore, last weeI
a lessening Of promise that the propose
ueas,res for the reform of the currenc