New-York tribune., 1906-11-12
THE FINANCIAL MARKETS.
HIGH RATES FOR MONEY RESTRAIN SPECULATIVE
ACTIVITY
Lo and Little Chance of Easy Loan Quotations
Rest of the Year-Trade Conditions Sound.
THE WEEK IN WALL STREET.

THE WEEk in WALL SlhEE1.
There was no evidence of bull enthusiasm in
J last weeks stock market notwithstanding the
/ defeat OF the candidate for Governor OF the
| state whose views on public questions not
considered by financial men safe or sound. Per-
haps however. the refusal of the market to re-
spond Mr.. Hughess election was based in
part upon the fact that the results of the voting
not only in New York State. but throughout the
country. showed falling off in Republican ma
torties and an increase in the number Of persons
who are opposed the so-called avarcious
tendency Of corporations and individuals TO con-
troll the productive forces of the country in
manner somewhat opposed to the general vel
fare OF the nation. There have been many
abuses in the management of corporations In
the last few years, but il is quite probable that
the interests TO whom is intrusted the handling
Of so-called trusts will. in the future. strive 10
conduct the operations of the concerns in which
they are interested in a manner more agreeable
10 the general public whose money they are
using. Politics, while undoubtedly a factor in
the weeks movement of values the Stock
Exchange not tho governing influence In
the market The position OF money was the
| leading argument advanced by the advocates of
lower prices. and the strength in loan quotations
was the principal influence in inducing liquida-
ton in all parts Of the general list Of securities
This liquidation was conducted in an orderly
manner and ii was not accompanied by heavy
losses in values. though the general movement
OF quotations in the direction of lower
figures. There appears to be little chance OF
stock market expansion at present but. on the
other hand. il is not believed that liquidation
will be followed by serious trouble the Stock
Exchange
Another factor which served to depress specu-
lative sentiment was the retirement Of Mr. Fish
from the presidency of the Illinois Central and
the election his successor Of the candidate OF
the Hartman interests who now in control
of the company. The concentration OF railway
ownership in the hands of few men is not con-
sdered conducive TO the best interests Of the
transportation business and the fact that the
Hartman party practically large pro-
portion OF the railroad mileage IN this country
suggests many minds the possibility of legis-
lative enactments which will curtail the one man
power in our railroad industry. while it also sug-
gests continued agitation in favor of govern
ment ownership OF the countrys transportation
companies. Such agitation naturally is disliked
in Wall Street, and even the remote possibility
Of the political success Of men who are in favor
OF government control Of railroads creates u
sentiment in Wall Street which is distinctly op-
posed to advancing values in the securities mar
ket. Notwithstanding all the alleged unfavor-
parting with their possessions. while on all de-
cnes they are adding to their lines and ad-
vising their friends to buy stocks on reactions
Prices we'll under the best figures OF the
year. and the chances are that with a return OF
normal conditions in money there Will be a
sumption Of bull activity which will carry values
many points above the current level
Money market conditions the world over are
being closely watched by fnanciers particularly
all the leading cities in this country and
in Europe rates for loans quoted at high
figures, with little prospect of decline of i'm
! portance in the immediate future. High rates
for accommodation have been brought about by
unusual activity in all lines of business and in
the speculative markets, and not by actual
scarcity of funds The amount of money in the
United States and abroad is increasing. but
credit facilities have been strained to un-
usual extent and there is good reason for the
argument that a contraction in loans must at no
remote period be brought about in order TO
strengthen the general position Of the financial
markets. In the last year there has been an
/ increase in the amount of money in circulation
in the United States of S213, ,751 ,20S. but not
withstanding this large gain the local banks
/ show a small percentage OF reserve to deposits.
and there is now no prospect OF bringing in
gold from Europe cash holdings of the Clearing
| house INSTITUTIONS can only De increased
/ through further assistance from the government
| or through a large return OF money from the
! interior Regarding the latter, the prospects at
present are not particularly promising, do
mestic exchange is uufavorable TO New York
and doubtless will continue SO. especially in New
| Orleans. for number Of weeks 10 come. It IS.
| therefore, believed that the Secretary of the
| Treasury viii again take steps TO relieve the
situation at this centre. either by making fur
ther deposits Of government funds with national
banks or else by paying in advance the govern
ment bonds which mature next July.
Inasmuch as government receipts are running
| well ahead of expenditures and federal Treas
| ury holdings large, there is no good reason
| why the Secretary should offer TO pay off
] part at least OF the per cent bonds OF 1907
| of which there outstanding S116.155. 500. OF
this amount. S34 $50 30 is held by the Treasury
| In trust for national banks against national
banknote circulation and United States deposits
leaving in the hands of the public $50 4O5 300
| Undoubtedly holders OF these issues would be
| willing TO part with them with interest TO jan
| uary l at a price which would be equivalent to
| their payment at par With April interest. So
far in the current north government receipts
| have exceeded expenditures by than So
! 100000, while since the beginning OF the fiscal
! year the excess OF receipts amounts 10 more
| than S1l,por.cO. The Treasury has a working
balance OF S74,000OOo, Notwithstanding the fact
that national banks hold $147o00OO0 of govern
ment money, and II may readily be seen that
the government is in easy financial condition
and would be warranted in taking steps to
| lieve the monetary strmgency which now pre-
| walls in New York. If current conditions in the
money market continue. business throughout
| the country will be adversely affected and
| Secretary Shaw has always shown a disposition
| TO protect our commercial activity against ex-