New-York tribune., 1906-10-08
THE FINANCIAL MARKETS.
STOCK TRADERS LOOKING FOR MORE ACTIVITY.
oneay Conditions Better but Prospects Do Not Favor Easy Loan
Quotations -Ralroad Earnings
STOCK TRADERS
THE WEEK IN WALL STREET.

reflected hesitancy on the part oL inc P"N-'S -
make large commitments. and unwillingness on
the part of some of the larger speculative IN
terests 10 work actively for higher prices. In
the last few days of the week, however, there
were signs Of an awakening among the bull eie-
ment and the character of dealings suggested
the probability of expansion in stock market
operations in the near future the decision OF the
financial hackers Of the market to resume opera
tons being based on the slight Improvement IN
the position OF money and on the favorable
situation in the country's industries. While the
wisdom OF resurning bull transactions at this
period may be questioned, II is fact that the
largest operators in Wall Street are beginning to
work for higher quotations, and IL the public re-
spends TO this movement securities doubtless
will move to s. better level. The easier ten
dency In money and the belief that n decisive
victory will be recorded in November by the
candidates Of the Republican party, not only on
the state ticket, but the Congress slate IN
New York and throughout the country, are ar
guments favoring upward movement in secur-
tiles values, and It is quite probable that these
arguments. together with the great prosperity in
all lines OF trade will serve to attract money 70
Wall Street from all parts OF the United States.
The Importance Of the election of Republican
Congress is fully appreciated in Wall Street, in
asmuch the banking community realizes that
the policies advocated by President Roosevelt
working for the best interests of the country,
and that the election OF the majority of Demo-
cratic Representatives would be followed by a
setback in the present prosperous condition Of
the nation a factor in the week which encour-
aged conservative investors was the refusal Of
the Atchison directors TO advance the common
stock TO a per cent dividend basis. The rate
raised TO per cent, and this was fully
justified by the increase in the company's earn
ings and the decision of the directors to shove
aside the demands of spectators who wanted 6
per cent ought to increase investment interest in
Atchison securities. while II should serve to
check the current movement which favors the
placing OF stocks dividend basis which can
not be maintained. except in years of unusual
prosperity.
While conditions in the local money market
are somewhat more favorable than they were
a few weeks ago. the outlook does not suggest
the development of a low level for loans In the
near future. Notwithstanding the easing in
quotations the position OF business and specu-
lation warrant the expectation that In the bal
ance OF the year the price of money will rule
at stiff figure, but there is no reason to pre-
dict disturbance In the money market. Pre-
vailing quotations for time money and for
commercial paper have placed a great burden
OIl OuI HlCIN-ldillS, Dut OhiuS W RAOspStOoo
condition Of the mercantile community there
has been no serious objection on the part of
business men to the price demanded for ac-
commodation. There is Indication Of a
change from the present favorable conditions
IN the business world, and I'm consequence busi-
ness men are willing to pay high rates. know
ing that these quotations reflect industrial
prosperity, rather than the boarding of funds,
which in years gone by have been responsible
for stiff loan quotations IN this country. Ap-
parently there is no reason for any individual
or corporation to keep funds idle under
present conditions. and it is encouraging to
know that there is little money in the country
which is not being actively employed in the
channels of trade.
The special United States deposits which
Secretary Shaw is distributing among the
banks Of the country do not much more than
offset the surplus revenue withdrawn from cir
culation in September by the Treasury and the
amount paid for Panama Canal bonds now
held as security for circulation. The increase
IN circulation, of course adds to the general
volume of currency in the country. but it
should be borne in mind that national bank
notes cannot be counted in the reserve of ma
tional banks. The greater part of the $4,000
600 Of government funds offered by the Secre-
tary of the Treasury to banks throughout the
country doubtless will come to New York,
owing to the inability of many of the interior
institutions TO secure the proper collateral
which VIII entitle them to share in the deposits
New York is in need OF these deposits, on ac-
count Of the increasing demand for funds from
the South, which evidently will continue until
the end of November and to the higher rates
for money in Europe. which serve to lessen the
chances Of further heavy imports OF gold The
present DO6itiOn ry1sr lyat xrbf lie
causing no uneasness in financial centres calls
for caution on the part of bankers in the maxi
ing Of loans which represent speculative opera
tions in the stock market. and fortunately the
larger interests in Wall Street recently checked
their transactions the Stock Exchange be-
leving that a little later on in the season
monetary conditions will warrant further active
dealings for higher prices
The national Treasury is absorbing a large
amount Of money from the channels of trade in
excess Of its expenditures. and while the Secre-
tary of the Treasury is willing to adopt extraor-
binary measures. not authorized by law, to re-
turn 10 circulation the money withdrawn for
government account. the relief is temporary in
character and will be of no permanent service to
the general situation. The weakness OF the cur
rency system Of this country lies in its infexibil-
ity, and to remedy this the special committee
appointed last March by the New York Chamber
Of Commerce TO suggest methods Of reform has
presented recommendations which. If adopted by
Congress, may serve TO bring about most needed
changes in the monetary system OF this country.
The suggestion that there be created a central
bank Of issue doubtless will not receive favor
able consideration, while there also may be some
objection TO the recommendation giving the ma
tional banks the power to institute an emergency
currency.
That the laws regulating the operations of the