The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1906-12-29
WALL STREET NOTES
Denied Greater Stringency
Exists Than Last Year.
PRAISE FOR CASSATT'S WORK
Remarkable Growth In business of
Pennsylvania Held to BE Due to
Ills Executive Force-Gossip as to
Successor-SImOn GuEgenhcim De-
cIares He VIII Quit the smeiters.

Successor-Slnon GuESenheam De-
cIares he VIII Quit the smeiters.
New York. Dec. 2S-An unfounded ru-
NOR that a Western house was in trouble
on account Of the slump in the Hill stocks
received wide circulation in the forenoon.
but without any effect on the general
market What really happened was that
the last of the weak accounts in those
stocks was taken over by strong interests.
II was not a Western account, and the
position of it was so well known that few
people were surprised when it leaked out
that a private sale Of the stocks had been
arranged. With this out OF the way. the
whole situation appears to be entirely
cleared up.
CAL money rose as high as IS per cent.
and renewals 10 carry over until Monday
We're made at Is per cent The bulls ex-
pressed satisfaction with the action of the
market under the adverse money condi-
tons, and the hope was expressed in
many quarters that extreme stringency
might not after all be felt over the end Of
the year. When the bulk Of the demand
for call money was satisfied the rate
oased of until it touched per cent, where
IL remained to the end Of the day
Il have heard a great deal about the
strngency Of money this month as COM
pared with December last year." said the
senior partner in a large commission
house. but il does not agree with my
own observation. The experience of this
house is that there has been a better supply
Of money this season than toward the end
Of 1885, What has happened is that lend
ers have made fuller use. through agree
meut or otherwise. Of their ability to ex-
tract high rates from borrowers than fin
past seasons
1t has never been our policy TO borrow
from our own bankers. but twice last De-
cember we were forced to do it. After
eNhausting every other means Of obtain
ing our money requirements. we were
forced TO call up our bank and tell them
that as a last resource We were forced 20
ask loan from them until the next day.
or course. we got the money when we
res0rtod 10 this. for us. an unusual meas
urc. nut there has been no condition this
year 90 make an appeal or demand Of the
same kind necessary"
All this talk Of an international
agreement 10 protect the money market"
aid member of one II the most prom
inent international banking houses in
New York. is the sheercst kind Of non
sense. The only possible foundation for
it Is that the Bank Of England notified
q ~.
endeavored TO draw gold it would At
once put up its rate 10 per cent. or even
higher I am afraid that is too much of
"a one-Sided affair TO be called an agree
Ecnt. but Il is the nearest approach To
one there is. But by whatever name il
may be called L have no doubt il viii be
kept. In my school days l knew a case
where a small though very smart boy
WON whole lOt of marbles from a bigger
one, but when the winner asked for them
the loser said: Unless you agree TO say
no more about them III punch your
head That agreement was reached. and.
what is more. * was faithfully kept
The international agreement in money
is very similar. What has happened IN
our money market is that Secretary
Shaw has given the banks to understand
largely their creation, in them rested the
necessity Of developing the remedy and
applying it or bearing the responsibility
before the country. There is no more
money here now when the call rate is
per cent than there was when the rate
was 50 per cent Liquidation has been Of
some use. but the relief was given by
the Secretary Of the Treasury when he
read the bankers a lesson on the re-
sponSibilities Of banking"
In the forenoon it was reported very
definitely that at the Pennsylvania an
nual meeting next March Mr.. Cassatt
would retire from the presidency TO ac-
cept new Office as chairman of the
board TO be specially created in order
that the company might retain the bene-
mt Of his advice while relieving him of
a large part Of the work performed by
him heretofore. Death has interviewed
TO make the creation Of the new office
unnecessary II is said that Nh. Frick
viii be the next president OF the com
pany, and many people think a better /
choice could not be made, although /
there are not a few who, conceding Mr. /
Tricks great ability, doubt if his selec- I
ton would be entirely satisfactory. 1
These contend that Mr.. Frick is ROW
often spoken Of in Wall street as an /
operator in the stock market sense. and /
that 1t is not a stock operator, but what 1
in tie railroad world is called an oper-
ating man that is wanted. Wall street |
is, beginning TO think that in z. a. Har-
rfman it has all Of the stock operator 1
railroad president that it wants
In 1900 at the beginning of PennsyI- !
vania's capital expansion the road earned |
SIS, 100000 gross. In 1905 the gross earnings |
were 33,Ooo,O00. an increase of slightly |
more than 30 per cent in five years. For /
the ten years preceding the increase was |
50 per cent. Thus in the past five years /
the road increased its business to an ex-
tent which it would have taken it fifteen |
years TO attain under the average rate 1
Of increase for the preceding decade.
IL may be too much to assume that on /
account OF the expenditure OF new capital /
the road has attained in five years a |
growth which it would otherwise have
taken three times as long TO attain, but /
there can be no denying that the improve
ments made to the property have resulted !
in an enormous increase in the business
of the road.
The most notable feature Of the whole |
matter IS that the growth OF business has
been brought about without any i'm
pOrtant increase in mileage. The length |
of main track has been added TO only to
the Insignificant extent of about 200 miles,
so that Pennsylvania, instead of going
outside of its territory for business has