The Washington herald., 1906-11-11

start gold exports. In the most conserve
tive quarters il WAS assorted that con-
tiluance Of high rates for 4 comparative
! y short tine would bring into Wall street
q good supply OF funds from ali over the
country, and that A condition Of normal
ease would thus be restored in natural
way.
tt is. of course, q well recognized fact
that money VIII flow 70 the point OF
greatest demand-which at present is
Wall street-bUt the question arises.
What viii become OF the business inter-
ests Of the localities from which the
flow Is relatively heavy?" Conditions are
such that absorption By New York may
AFFECT the commercial activities OF other
parts Of the country. the circulation Of
money being as essential TO a healthy
cono.ton IL these as a natural circula-
ton OF the blood Is 10 the health Of the
animal II Wall street sucks the vitality
out OF the commercial centers, then II
win be necessary for Secretary Shaw to
afford relief where il will do most good.
Discussing the probability that what
ever reduces the money rate here VIII
send gold abroad, q weII-informed broker
says, Should the treasury decide to To-
/ tire bonds Of 1876 10 the extent Of $780,
100, il would make little difference If we
were obliged TO send Sl0.00.JGO abroad
I The tension I'm London is the result, very
/ largely. Of conditions which We have
/ imposed, and the foreigners think there
I is a moral obligation on us 70 take care
I Of the situation What relieves London
[ relieves US, and Il the relief comes
through US It benefits US In the last
! events. We see that there is no intcu-
| ton on the part OF SIR. Shaw % do any
( thing ~ present but the same holds
good TO matter from what cause money
/ here may work oasier-gold must. go
abroad, or American stocks viii be re-
turned 70 this country.
with the surplus reserve wiped ont. and
| q deficit OF N.5IA125 created. the bank
statement could only DO regarded as q
bad one, Notwithstanding the decrease IN
loans. nut IL IS Interesting to note TIA,
I the deficit is not as large as the similar
/ item at this time year ago. on Novem-
/ Der II, 1875. there was a deficit OF S2,24S,S5l
cali money having leaned IN that week as
/ high as Il per cent. or about the level
/ touched last week. There was a good deal
Of similarity between the conditions ot
the two years, and y remains 90 Dr. seen
whether there will be equal similarity be
tween the coming week and the core
spending week IN 1855. In the week end
/ Ing November = last year. call money
rose as high as . per cent, but toward
/ The close OF tbe period dropped down %
/ low dEures- st tho end OF that week
thc banks showed instead Of a deficit @
surplus reserve Of $2-sI515o. and By Nc.
gcWbcr - this rad risen 10 S9.lsT.IG0 sl-
though t.gu weeks later !J was aga IN
wiped out. The high rates in Novombsg
/ last year drew money TO New York. but
Whca the RACES here declined the move
mtnt turned the other w2v. and the same
+ may Occur this year
Everywhere around the street one hears
tae questions asked whether X is true
/ that T. II. Hartman has solo n large
line OF stock IN the expectation o. get
ting it back ten or twenty points lower
! but nowhere Is cny one found who Is
ready to make c direct assertion or tho
point The people who ask the question
DO not leave themselves open 70 a.,
I charge Ct making false statements. but
/ 4 course there can be EJtle doubt Of The
/ impression which tley mean 20 create
I Il would be interesting 20 know Why il Is
) desired 10 create such an impression. and
perhaps % fair inference Is thot scnie one
/ IS anxious for al opportunity 20 Get
( stock. although o. coUrsc Z must not bc
/ Tor gotten that similar r1imors have al
ways been among the weapons used by a
I group OF speculative operators now sus-
pccted 81 operating on the bear side O.
( TIE market.
/ \ large trader says the only reason e
suppose r. 4 Hartman has changed
I bis attitude toward the market is that the
elections on Tuesday last may not have
gone % his liking The results" this
! trader says, were nos favorable 70 Hears
or Hartman, TOT the former did not cap
/ ryITe New York ard the hitter did not sue
| c1ed in gaining control IN any state tha'
/ know Of.
Tho street has q new argument or
! Southern Pacific. So many lemons ar5
I handed out every day that the road is
/ sure OF a tremendous traffic in this class
Of freight
"Witb the insiders al or the outside, p
! said a close observer Of the trading, II DC
not see who is concerned in putting Penn
( syivana I'D. The interests which sold out
/ do not want a rise before they get theh
stock back, and there Is 10 group OF
traders strong enough to put up the prices
! Those who sold out knew they could gel
! their stock back whenever they wanted
/ il, in view Of the enormous supply, ana
/ they kuew-what the general public had
/ 10 knowledge ot-tkat a voluntary in
! crease in the wages OF employees would he
granted raising the question Of the road
ability to maintain the new dividend rate
under all circumstances. BY the time the
general public have satisfied themselves
on this point the insiders will have thei1
stock back with quotations founded on q
doubt For which there is no reason.
! Apart from the expectations OF rights
the remarkable growth of earnings fur
/ nlshes a reason for the recent strength
/ in Northern Pacific stock. For the fisc3
year ended June 80 last, the road showed
| Il per cent earned on its stock, and the
! monthly statements published since thc
/ end OF that period have been uniformly
/ favorable. The statement for Octobel
/ shows that the $7,0oo,e00 mark was passed
I 10 that month, with an increase OF
$3.50 in gross over the corresponding
month last year. For the four months
/ OF the present year the showing is rela.
! lively better. the aggregate gross earn.
! ings OF Sz5,05S,9S0 being s5.S1S.655 in excess
/ OF those for the same period a year ago
/ The gain last month was 10is per cent,
I for the four months il was 49, per cent
/ Possibly the net earnings Tor October
/ %%-S4-%~-AS]-~-<%-e-~ -