New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-09-03
THE WEEK IN WALL STREET.

hogan with the placing Of Union Pacific common
stock upon 10 per cent yearly dividend basis
became last week irregular movement the
automatic danger signals ~ the money market
compelling a reluctant 'essening n the pace WIN
occasional recession But despite the daily ad-
vance IN the call money rate which on FRIDAY
reached - per cent. a figure NOT before touched
in August for many years. ard the daily increas-
ing loss ~ cash from the hanks To the Sub
Treasury a movement foreshadoving the dis
arrearance ~ the surplus reserve If the Associ-
ated Banks which at the close If the preceding
week had dwindled n the smallest total recorded
in August week I'm ten years. each day ~ me
week lust passed witnessed determined efforts on
the part Of the hull leaders to advance stock
prices. efforts fully successful on only one day.
when violent break ~ about 20 points in ster-
ling from an already low level gave the promise
Of money marker relief through the importation
Of gold from Europe. on FRIDAY. however. an
initial engagement Of about 3 half million gold
in Paris was arranged by local hank and IL be
came a practical certainty that several millions
in all would he brought from Europe. in spite
Of the advancing ~ the price of both gold hsrs
and coin IN London and the small amount of new
gold due 70 arrive az that centre in the irnmedi-
ate future.
The movement Of money 70 the interior for
moving the great crops of this season is already
under way and will continue for many weeks
and the tremendous volume NJ business being
transacted all over the country calls for the en-
ployInent Of vast funds. For time money not less
than per cent is now asked. even on the best
mercantile paper: and Stock Exchange Dor
rowers ara obliged 10 pay substantial com
mission in addition 10 that rate Brokers are.
as a rule much more amply supplied than they
We're year ago with time loans running through
the crop moving period when each year money
market stringency develops; but the require
ments Of a riotOus speculation are excessively
large and the pinch has already come in Wall
Street in spite OF the borrowings from Europe.
II can he relieved I'm one OF several ways. II
great amounts OF gold were available for i'm
portstion and il obstacles 10 the transfer OF the
metal 10 these shores were not being interposed
by Europe. inflow of gold in volume would
offset 10 a safe extent the drains on the New
York money market: but. unless New York is
prepared TO bid high in the foreign markets. the
import movement which has just begun will not
be a large one. The Secretary OF the Treasury
recently diverted S3000.O00 OF government rev.
enues TO depository banks, dividing IL among
a number of the lesser Institutions; he could.
according 10 a competent authority without en-
barrassing the Treasury. place in circulation. by
retiring bonds. from S30o00O00 10 S50.OOO.O0
additional Thus far. however. he has let il be
known that he does conceive the situation
to be such as 10 make il advisable for him to
take further measures OF relief but undoubtedly
the placing by him of several millions in depOs-
itory institutions would come grateful and
thrice welcome relief 10 the men IN control OF
the bull campaign in the stock market and 10
the host Of their followers having commitments
on the long side.
For the alternative is liquidation of stocks.
and there is abundant evidence that the power
full interests behind the present market are not
yet ready for wholesale liquidation. Union Pacific,
10 be sure. has had b point advance since its
dividend was so sensationally raised; but surely
there ought TO be room for a considerable ad-
vance from 1874. allowing profitable opportunity
for insiders To transfer their holdings TO out
siders. before the real value of 10 per cent
dividend payer which is a standard railway is
sue can be said 10 be fairly measured. Great
Northern with which Northern Pacific moves
pari passu. has in the last week advanced on
the 'ore deal possibility, but the formal an
nounceTnent Of the terms of this arrangement
SO many times exploited and 50 wrapped about
in mystery. Was according Street gossip
surely To be made in September. and cruel would
he The disappointment OF a multitude of worthy
men if a period Of forced and widespread liquida-
ton should set I'm before that suspicious day
And so with many another stock which has re-
Gently Deneuteu 10y az y d hitShcNbANS bNii~iA
ciary Of the abounding national prosperity
Atchison. Norfolk q Western and Chesapeake
& OHIO have .een among the issues which have
had partial advances in anticipation Of the prac-
teal certainty that their dividend rates will he
increased and which. unless the money market
shall become I'm the near future too tight to
make it possible for operations for the rise 10
continue 10 he carried on will go higher.
Even Pennsylvania. with its colossal eXpendi-
lures for improvements from which returns will
not he had for years 20 come. is being sought
10 be swung into line for a bigger dividend. and
| n now seems pTOha bic that the rate viii he ad-
vanced. unless President Cassstt shall express
his emphatic disaP2roval of the proposal
The hank statement Of last Saturday seemed
entirely likely to he distinctly an unfavOTable
one showing the disappearance 81 the surplus
| reserve II proved 10 be far different from
what had been conservatively expected Joss
| i'm cash OF nearly S7000fg0 had been figured
from the known movements or money. but the
| loss was less than S4500oo6 In the loan item.
| in spite of the excited speculation OF the week,
a decrease Of nearly S1.JONp was shown, prob
ably due I'm the main 10 tTansferrence Of loans
10 foreign bankers. and deposits decreased nearly
So 0oaOGa There remained as surplus reserve
50 S(5.9 400. a figure which although much lower
| than that al the beginning Of September I'm any
preceding year since 1913. is manifestly better
than no surplus reserve al all. or deficit. That
consideration. with the continued prospect Of an
| nouncement Of gold engagements this week was
enough TO put fresh courage into the hearts or
the market Inanipulators. and prices were again
/ rushed confidently up with every indication OF a
! further advance during the FIRST part Of this
/ week.
The movement for larger dividend returns is
I IN itself no for apprehension, but what is
| 70 he reprobated Is the apparent determine tion
| az the stock market leaders to push their cam
paign, based largely upon the fact of increasing
dividends. I'm disregard of conditions which
should be recognized as making il the part Of
/ conservatism aud safety 10 call a halt in the
speculation. Tremendous harvests OF corn and
wheat and cotton are assured. railroads are
! taxed 20 provide rolling stock to transport the
! traffic Offering, manufacturers and merchants
| everywhere are doing a highly profitable bust