The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-01

done ana that may YET ne accomphsheu
In the way OF Government aid Of the money
market IL In dinicult to zee what particular
grounds there are for fear Of such a period
OF tight money during the remainder of the
year a. should retard Judicious purchases
Of securities. There are observers who
maintain that they see signs OF what Ia In
substance speculation for the rise In money
by various banking institutions, chiefly
those in the interior Of the country, OF q
nature analogous to the holding OF cotton
or wheat by the planters and farmers for
higher prices. II Ia said that many Of
these interior banks have on deposit here
and in the other central reserve cities con-
siderable sums OF money that they will not
loan except as e1orbitant rates are paid
to them. Money, however. will seek its
level, and any undue holding OF funds OF
this sort will be checked by the force Of
events. Some attention, II 10 true, should
rest upon the conditions disclosed in the
return, published during the week, OF the
national banks to the Comptroller OF he
Currency OF their condition at the close
OF business on September 4. As compared
with the state OF Affairs a year ago the
loans of the banks nave increased $780,
OOO, 900 and their cash reserves have de-
creased $50 900, 900. As it Ia known that
during the twelve months preceding Sep
TENDER I the amount OF money in oircula-
ton in the country was increased in new
gold and new bank notes by $50 900 900,
the figures given show that practically
500, 0OO, 900 in cash funds has sun out OF
sight somewhere in the ourse OF this time.
The only way OF accounting for this phe-
nomenon Is that the unparalleled pros
perity of the country has led more and more
TO the use of cash in business, the carrying
Of larger sums Of money in p~ocketbooks
and the like.
But all this, again, only emphasizes the
fact Of the exceeding prosperity Of the ma
tion and OF the huge earnings OF our rail-
way and industrial companies that are
entailed thereby. II commercial paper Of
the best mercantile firms is selling at 81l
per cent. and time money is held between
Q and 8 per cent. for different periods it
means that the people using this money are
making all the way from 10 to 80 per cent. or
20 per cent. in their own business; and it il
the intimate knowledge OF this immensely
profitable conduct OF business that makes
financial interests Of the first rank, with
hardly an exception, optimistic in their views
and has led them to invest in stocks while
the market has been sagging during the
last thirty days. Discussion about the
Cuban situation and the Hearst scare has
been and is regarded by all these powers
as mere die talk in view Of the essential
fact OF the unprecedented current profits
of corporate undertakings Of every kind
and the promise, based on the coUntry's
bumper crops, that these profits will con-
tinue for another year. What reason q
there for sales OF Union Pacific Common
stock at 1888, a railroad security now on an
established 10 per cent. basis and whose
earnings for the present fiscal year seem
likely to be at least 20 per cent? Some
question has been raised whether the direc-
tors Of the Atchison Railway Company
will lift the annual dividend rate on the
Atchison common shares to 0 per cent.
as has hitherto been expected; yet it is GER
tain that the dividend rate will be advanced
to 5 per cent. anyway, and is not a stock like
this worth los when in the last fiscal year
il showed earnings available for divi-
dends Of 1871 per cent. and. il the opera
lions Of the first quarter Of the present
wear are any criterion, is likely TO show next
wear much larger earnings? h orders
placed by our railroads with the locomotive
making and car building concerns now
surpass all previous records and must re-
suit in an increased distribution upon the
stock Of these equipment companies before
very long. The copper companies are get
ting higher prices for their product than
they nave received for twenty years and
most of them have made sales of the metal
for many months ahead at these figures.
Increases Of dividends in the cases OF these
companies are inevitable. After whatever
small speculative congestion now existing
in Wall Street is relieved such facts must
tell.