New-York tribune., 1906-06-22
STOCKS GENERALLY LOWER.
BREAK IN UNITED STATES STEEL AFFECTS ENTIRE
LIST
Aggressive SeLCan IL Easy but Time Rates Firm
Sterling Near Gold Import Point.

success of the Pennsylvania loan in Paris will
serve to encourage other concerns 10 apply TO
French bankers for funds. but IL should be borne
in mind that few corporations in this country
have the standing abroad that is enjoyed by the
Pennsylvania Railroad
Time money is growing irner and sterling
exchange shows an easier tendency The Bank
of England has reduced its minimum rate of
discount to 3l5 Ser cent this action rejecting the
improved financial situation abroad and fore
shadowing the probability of large foreign lend
ing in the New York money market. 1t is not
unlikely that this market will be compelled 10
depend in great part on European capital in the
summer months, and that foreign bankers al
ready are willing to make loans here is reflected
in the increase in the amount OF finance bills
which have appeared within the last few days
With relatively easy money abroad and firm
rates in New York foreign capital naturally
seeks this centre, and local borrowers quite
convinced that maturities of foreign loans will
be easily settled later on in the season by grain
and cotton bills and offerings on account of ex-
ports of general merchandise. 1t is improbable
that further large transfers of money recently
sent to San Francisco will be made to New York
inasmuch as the Pacific Coast city will need
tremendous amount OF money in it's rebuilding.
which is now under way. an indication of the
demand for this purpose being presented in the
application of San Francisco banks TO the Fed
eral Treasury for government deposits which
will be made Just soon suitable collateral
is provided. Rates for money at interior points
continue 10 rule above the prevailing level in
this city, and ii is therefore unlikely that
New York will be able to draw much money
from the West and South in the immediate
future.
The increase in the dividend on Baltimore g.
ONO stock following the advance n Pen0SyI-
vania companys stock and Panhandle" stock.
has created the impression in Wall Street that
the Norfolk & Western, which is controlled in
part by the Pennsylvania Railroad, will make
a large disbursement at its next dividend period.
This company has outstanding S64. .469.2 200 COM
mon stock, of which the Pennsylvania and its
subsidiary companies own more than 500 ,O00,-
OO0 In 1908 the stock was placed on a per
cent basis and its current earnings justify an
increase Of . per cent. especially as the indi-
Gated surplus for the year is equivalent to 10
per cent on the stock. For the twelve months
of the fiscal year, the last two months estimated.
gross earnings will amount to upward OF S2S.-
100000. compared with S24,OS9,2 ,259 IN 1905
While the balance. after charges and preferred
dividend, will aggregate $64OOOOO, against S4.-
103,332 in the preceding year. The company
has adopted the policy of spending large
amounts on the physical betterment Of its prop
erty, and the same thing may be said OF Chesa-
peake & Ohio. which, according to Wall Street
ought to advance its dividend TO a per cent
basis at least. Increased dividends mean more
money TO investors, and it will be interesting to
note the influence of the increased purchasing
power OF investors on the stock market In
vestors may prefer to place their money in per-
sOnal luxuries rather than in securities which
are selling at prices which return at present
figures relatively small dividend returns.