The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-08
THE FTNANOTAL sIrUATIOe.

NJ NtA - ~ WIN 1880
most Of the week the price movement OF
stocks held steadily within q narrow range.
Speculation could hardly he said to be in
active. inasmuch az the daily volume OF
Stock Exchange transactions averaged
above a million shares, and on Friday the
official announcement Of the contamination
If the ore deal transaction that had 40 long
hung fro bet ween the Great Northern Rail-
way Company and various private owners on
the one hand and the United States Steel
Corporation on he other gave a flip to the
market which sent quotations up very
briskly. Before that time a feeling seemed
to prevail hat on account Of the impending
fall elections and perhaps by reason Of other
causes there would be no great operations
undertaken by the leaders in the financial
world for some weeks to come, and that In
h meantime therefore the security
market might be expected to be dull, or at
least less animated. than IL had been during
the month OF September. No doubt the
buoyance Of speculation for the rise was to a
greater or less extent chilled by the action
Of the directors OF the Atchison Railway
Company in declaring only a s~emi-annual
dividend on the Atchison common shares at
the rate OF S instead Of Q per cent. Up
to within a couple OF weeks ago sentiment
was almost universal in the financial dis
trict that the Atchison common divi-
dend would be raised to Q per cent.
II then become known that while large,
and perhaps the largest, stockholding IN
terests in the company were In favor OF
such a course the active management OF
the road were opposed to IL and approved
only a 5 per cent. rate. The stand taken
by the cement was the one that Is
almost invariably maintained by those
directly charged with the care and opera
ton Of railway properties. Railway
officials usually want to spend, 40 far a.
they are allowed to do so, the revenuee
of their company in improving the property
Of the company. With these men the
wishes OF stockholders are logically a
secondary consideration. In deferring to
the voice OF the management as they did
the Atchison directors have acted in a very
conservative way, as they would have been
amply justified in putting the roads COM
mon shares on a 9 per sent. basis; and the
fair superstition is that IL the Atchison
earnings go on increasing in the present
fiscal year as they have done since the
year began the dividend on the common
stock will be advanced to 0 per cent next
spring. A a 5 per cent. stock. therefore,
in this condition the present price OF Atch-
ison common certainly does not seem
high, and il was noticed that SPECTATORS
sales Of stock during the week were readily
absorbed. Now that the terms Of the lease
Of the ore lands in the Northwest have be-
come public the general opinion of the
arrangement seems to be that both parties
to it have made a good bargain. The
Steel Corporation is placed. as it was not
before, in the position OF having fts future
supplies Of ore secured. and this. too. with
out any increase in its capitalization; and
there appears 70 he little doubt among
In these matters that the rapidly
diminishing quantity Of workable iron ore
lands in the country is such that within a
not IA distant time in the future current
prices FIR iron ore will seem very cheap.
The benefits to the Great Northern and
Northern Pacific railways by the affair
are manifestly great. These corporations
are selling at a price that will net them al
u~ncounted millions Of dollars prop
critics which were originally bought for
a song.
One thing that was very evident through
the week was that the money situa-
ton was easier, and this was really the
most important development Of the last
six business days. Call money sagged
from a ruling rate Of 7 per cent.
Monday to a ruling rate OF 3 per cent.
Friday, and that it displayed this ease
was not a little surprising to bankers who
had believed that owing to the time that
was necessary to elapse before the o
- Al. g. ~ nzN1kz- .,.,.II
to this centre fairly stiff call money
rates would be prolonged quite a little after
the first of the month. The change OF
greatest moment that occurred. however,
was in the price Of time funds. Time
money UP 10 the middle OF the week was
held only at the legal rate by nearly all
lenders. save in those cases, Of course where
funds were asked for upon distinctly poor
collateral or by borrowers in doubtful
credit. In the middle Of the week the Bank
Of England, although it made a poor re-
mort Of condition. not only did not advance
it's minimum discount rate but actually
caused it to be made known that it would
under certain circumstances lend money
at concessions from existing rates; and
this. il was thought. was due 10 an idea
that the English bankers had correctly or
incorrectly formed that demands for gold
from this side Of the Atlantic were about
over. No doubt one matter contributing
greatly toward ease in the money market
was the order Of the Secretary Of the
Treasury for the deposit Of see, 900 900 Of
public funds in the national bank deposi-
tories in different parts Of the country.
When the plan was put into execution the
Secretary discovered. as bankers here pre-
dicted he would. and as he has discovered
on one or two similar occasions in the past,
that comparatively few national hanks
in the South and West either had bonds
in their possession or were willing to go to
the expense and trouble Of procuring
bonds Of the kind specified by the Treasury
as security for Government deposits in
order that they might obtain the money
thus offered; and there was nothing for the
Secretary to do, therefore. IL he wished to
reli eve the situation, but 20 offer to the
larger national banks in the great cities
an increased allotment Of the public money
that he proposed TO distribute. The net
result OF il all will be. probably, that the
ut this centre will obtain the greater
portion Of the 500, 900, 900 that the Treasury
will disburse. II is clear. moreover. that
this dist ributiOn Of this money by no
means exhausts the power Of the Gov
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