New-York tribune., 1907-09-09
THE FINANCIAL MARKETS.
STOCKS HIGHER AND CONFIDENCE APPARENTLY
Return
Increasing MoneyTrode Recession Likely To Be


of rising prices on the Stock Exchange and Of
money market ease very unusual for TINS time
Of the year There has been extensive covering
Of shorts. which, indeed, has supplied the prlncl-
pal part of the buying demand, and this cover
ing movement has represented an acceptance py
the bear party of the fact that confidence IS
gradually being restored and OF the propaplhty
that ease, compared with fall conditions IN pre-
vious years. will prevail IN the money market
during the next few weeks. although occasional
periods Of stress are not unlikely the appre-
hension over the outlook until recently SO gen
orally felt induced merchants to come INTO the
market as borrowers on long time of amounts
much larger than they ordinarily would nave
sought. and a movement to withdraw funds
from the banks gave the officers Of those 1nstl-
tutions much uneasiness. The turn came Win
the Presidents assurance in his Provincetown
address that il was his purpose, in carrying out
his policy of prosecuting law violating corpora
tions. not to infiict unmerited hardship upon
innocent investors, the impression having since
then been gaining ground that the prosecutions
were not likely 10 be extended much beyond the
present list.
Then came the announcement by Secretary
Cortelyou Of his decision TO deposit large sums
Of government moneys with the banks in var1-
Gus parts Of the country during the per1od OF
the moving Of the crops. a policy the ADOPTION
of which has done much to better the situa-
tion, assuring as il does a virtually continuous
replenishment of the banks funds absorbed in
providing for the crops. In compliance with the
express desire of the Secretary. the banks have
withheld all information as TO 1he amounts
which they have received or expect TO receive.
but il has been understood that the deposits
have thus far not been large, the lateness OF
the crops this year having caused postpone
r77ent of the urgent demands from the interior
An indication of the extent OF the deposits made
TO date is given in a washington dispatch or ,
Saturday, which said that there had been LOGGED
with the Treasury s2.297.0o0 bonds as security
for special deposits under Secretary Cortelyou's
plan. and with the New York sub-Treasury
s. .S04 ,000 The announcement Of that plan has
had an excellent effect not only here. but also
In London, the English bankers believing that
II would go far toward preventing severe strin-
gency in the local money market in the fmrnedi-
ate future, and in that belief, inclining again to
look with favor on American finance bills
AS a result partly of the action of mercantile
interests in supplying themselves with funds
we'll in advance of the usual time for arranging
for loans, partly Of the greatly lessened de-
mand for stock market purposes and in part
also of the backwardness of the crops, time
money is now in fair supply and at lowered
rates for all maturities. The banks are IN a
decidedly stronger position than year ago.
Surplus reserve now stands at S1.3t2,3eo, Whhe
at the corresponding date in 1906 the bank
statement showed deficit Of s6,577,e2o Loans
increased last week only s611.s0o. although a
larger figure had been looked for, while year
ago they showed a decrease of SIlsoo'o0o'
considerable part of which probably represented
shifting of obligations to Europe. Deposits
decreased s170,So0 against shrinkage OF SZ'-
sA3 100 in the first week Of September last year.
An increase of nearly 100000 in cash had
been figured the preliminary estimate nut
the statement showed instead a decrease OF
sl,426 500, which. however. compares very IaVcI-
ebly with the decrease of 100 reported In
the statement of the associated banks for sep
ten1ber S, 1906. One of the results OF the I'M
provennept in the money market OUTLOOK mas
been the virtual guaranteeing OF the success OF
the citys s40o0O,000 bond Offering DIGS Tor
which are to be opened tomorrow, since with
conditions as they were a month or SO ago tile
big banking houses and institutions which are
relied upon to take the issue would hafoly nave
felt II prudent to enter upon the TRANSACTION.
And the floating of that great issue II saus-
factory prices shall be obtained. viii In lts turn
aid materially in strengthening commence
Next week, following the payments TO be MADE
IN the New York City bonds, the nleinpeis VI
the Union Pacific bond syndicate VIII nave 10
nav the final !nstalment Of more than tnlrty
roiI,;on dollars due on their holdings ana VIII
a;I,a from the managers of the syndicate. Whlch
&C. tbAn m be dissolved, the blocks representing
their respective subscriptions LOT the julius %
+he s75 coo 900 (par valUe) OF "hlch the 9S Hui III
-. +oox 573a per cent, almost al OF "hIch II
-:1I pcIds The payments for the city ana Union
1oc.6c honds however, are expected 10 ne ar
-sryed with little disturbance 10 lhe money
market
The occurrence Of two failures lasl .s
f.ile6 10 check the upward tendency OF the
- ,,orlxa+ One was of a speculative STOCK
Eobsnre house which had been known 10 DE
bu1lisb on the Hill stocks during ther trelheh-
since last DecenlDcT anu
80, ,,,os renorted also to have suffered severe
80. an wheat The other failure was or
tor stool cornpany which had never been IN
a.necIa11v good standing and the troupies Oh
1,,b,ch cannot reasonably be regarded as an IN
z;oo,io,, os coming disaster TO better situated
ornorot,ons in the iron and steel field Ihat
o,bar Wall Street failures may come, OF hrfhs
aaLe,ed tv the long liquidation in the stock
market is not impossible; and that not ie"
other commercial failures VIII occur Is not III
h.ble The August record shows total or
e5o commercial failures. with S1519I, ,i49 ma
tilities against 7SS in the same month of 1870
nth total liabilities of SS.S21, 154. the increase
in liabilities having occurred III inc Grass en-
brac,ne manufacturing insolvencies. But TRACE
is everywhere reported good, and the faliroaos
are still reporting increased gross earnings Ill
though signs of a salutary recession IN business
activity are unmistakably evident ana the
stock market, with prices at around thelr pres
ent levels would appear TO have discounted the
moderate industrial and business reaction winch
is now in progress.
The week has seen the hating of the copper
market st 1S cents decline of seven or eight
cents from the recent high level and predic-
must be granted before consumers will come
into the market as heavy buyers. The fall in
the price of the metal is one of the outcomes Of
the tightness OF money during the last year or
two which was caused by the rapid expansion
of business and which forced railroads and in
dustrial concerns to suspend extensions and i'm
except at practically prohibitive rates But it
nc hat <arerc was re-