The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-15
GOSSIP OF WALL STREET. a

monetary COnUlIlOH5 db ColHpdlCh Nv thooO
which prevailed at the end Of the preceding
week, very few people looked for such a com
plete recovery In the financial situation az
was presented In the figures published yester-
day. The statement did not make its APP
pearance as early as usual. and this pro-
longed the hesitation on the part OF traders
who did not know Just what TO expect, al
though some shrewd operators, seeing the.
consistently good buying, reasoned that the
cause OF 1t would probably be shown In the
accommodation OF q large surplus reserve
by the banks and took the bull side forthwith,
But the rank and file could not make up their
minds as to what they should do, even when
they saw that the deficit OF the preceding
week had given place to q surplus OF nearly
S5. oOo, 900. They thought that advantage
might be taken by those who had previously
bought stocks Of the favorable showing 10
take profit, but q few minutes sufdoed 70
convince them that not only were large In
forests indlsposed to sell. but that they con-
tlnued to accumulate on the favorable turn
In monetary AFFAIR.". From this time the
market gained In activity and breadth. with
the shorts covering freely on the advance.
Apart from the bank statement there were
two matters affecting the money situation
which attracted o good deal Of attention.
The first OF these was the engagement OF
IS, 900, 900 additional gold In London by tho
National City Bank. while the second was
the fact that this Institution had obtained
from the Sub-Treasury. acting under au"
thority from Secretary shaw, a5.ooo.oQo
representing the gold which the bank had
engaged In London earlier In the week ana
which was already IN transit. The engage
ment Of an additional large amount OF golo
for import caused genuine surprise. Inc
banks had apparently such difficulty early
in the week in securing gold with the rate OF
exchange well below the import point thas
1t was taken for granted that on the recovery
In exchange no further imports could DO
arranged for some time. In many places u
was believed that the transactions had proba-
bly, been something like the exercise of an
option and that while really completed yeSter:
day It was TO all intents and purposes based
on the conditions which prevailed In the
exchange market earlier In the week.
Western houses were quite aotive in biddfn8
for stocks and were influential In making ad"
yances In a number OF issues, but In the
opinion Of many keen observers II would Do
wrong to credit to them the strength In the
market generally. II was apparently Q case
where large interests. treasured as 70 the
money situation, had resumed the buying OF
stocks where they had left Of when apprehen-
slons were aroused by the threaten ing money
market OF O week or two ago. Among move
ments In which the Western interests were
supposed to have taken q prominent part
we're those In Northwest. St. Paul. the equip
ment issues, Anaconda. and to some extens
Amalgamated Copper.
The FIRST cut in the Amalgamated Copper
dividend was made at the end OF 1901. and
by the beginning Of 1908 the rate had dropped
from 0 per cent. and 2 per cent. extra 10 2
per cent. 1t remained there until the be-
ginning Of 1905, from which time there have
been several small increases up to the present
rate. Many people think they can see q
good deal Of similarity between the decline
and the recovery. All that is needed, they
say, to make the similarity complete is the
restoration OF the . per cent. extra feature
Of the original dividend. which With the pres-
ent regular Q per cent. basis would make
substantially Q per cent. per annum. This
restoration. II is commended, would AFFORD q
complete yindloatlon Of the dividend policy
inauRurated at the outset Of the companye
career, which had to be departed from on
account Of O disturbance In trade conditions
which has now completely passed away.
Should the extra dividend be restored Thura-
day next the period OF recovery Will have
Just eQualled the period OF decline.
There was plenty Of bulllsh talk on South
ern Pacific, but the stock did not respond
readily TO efforts to move it upward, and ap.
parently there was q good deal OF scattered
selling on the theory that the company's
main line would suffer considerably from the
threatened competition OF Rock Island q
New Orleans and Galveston connections
With the Western Pacific parallellng the
Central Pacific and the Rock Island as q com.
petitor in Gulf territory It was argued the
Southern Pacific must lose considerable busi-
ness. Some conservative interests. however
took the ground that the growth OF traffic
stimulated by the increase In facilities would
be 90 great as to tax the capacity OF all the
/. lines by the time, still far distant. when the
, new ones could handle a fair share.
A good deal Of attention is now bestowed
|, upon the possibility of the passage at an early
date of the appropriation bills. which vii
/ nut a good deal of Government money In
circulation. Contractors for all sorts OF
supplies, river and harbor work. and FOL
services Of various kinds rendered to I'M
Government are naturally anxious TO re-
3 celye payment as soon as possible and thet
| anxiety ia shared by every one interested II
the financial and commercial stability Of thu
country. In view of the comparative soarcit!
NJ money at this time. Many people ar,
s a little impatient because Congress appear
3 to a X more interest In Statehood bills. 10
S instance. than in measures for the relief o
s the money strlngency.
= couple OF weeks ago the city OF Chlcag'
o failed to sell a block of municipal bonds
Q Another large Western city has Just had
3 simflar experience. In the case OF Chicag'
o municipal socialism may have operated t
9 deter bidders. but taking the two cases to
oSther, It looks as II cities generally are con
q Sronted with the question OF increasing tn
. rate Of interest on future bond issues. NeN
I Work. has had to do this with Its corporal
: etook. The lesson should be taken homo b
|. tbose who fail to sec the need for the enact
l ment Of measures to secure for our ourrenc
!: that elasticity so much favored by our bank
y ers and which would have prevented IN
money strln gency that has been responsioi
= tor the apathy Of bond buyers. 1t Is not har
, to see What this tend ency must lead to. Highe
u interest on municipal bonds involves hight
F.. taxation, and this In turn means higher rent
Z y. othor words. the masses must In tin