The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-08-12
NEWS AND NOTES
FOR INVESTORS,

Within a fortnight the banks of Chicago
and New York will begin to feel the pres
sure of the depand of the West for cur
rency for moving crops. Already the flow
to the country from Chicago has set IN,
and during the last week in July and the
first of this month it was almost as great
a drain on the banks MS it was a year ago.
Steel mills and furnaces are running
their full capacity to meet specifications on
current contracts. Within the next thirty
days a general stiffening up is expected.
The London Bankers magazine says
that it is satisfactory to be able at last to
record a general Improvement in the
course of stock exchange values, our rep
resentative list showing a net apere-
citation for the month of July of about
S45, 5000 300.
The New York stock market has been
drifting again aimlessly, values declining
materially. All parts of the industrial ma
chinery ave for the time being been
thrown out of gear, inducing severe ten
sion. Money is scarce, and bank funds
are overtaxed. This is the case not onlv
in New York, but over a wide portion of
the country and quite generally in the
Northwest. The crop starts with the sur
plus reserves of our banks at a very low
minimum.
Following is the compilation of figures
by the New Jersey Commerce and FL
nance, showing the condition of local bank
ing institutions for the week ending Aug lst
10: The combined statements of the Ma
tional Newark Banking Company, the
Essex County National Bank, the Mer-
chants National Bank, the North Ward
National Bank, the Union National Bank
and the National State Bank. made at the
close of business under date of August Z,
show the following aggregate items: Loans
and discounts, $50. 942, 627. 9S; bonds and in
vestments, SO, 116. SS3. 81; deposits, $50, 212,-
934. 40; due to banks, 1855, 81. 70; cash and
reserve, Sc, S52. 51s. 70; and due from banks
(other than reserve agents., 1924. ass. 20.
The combined state ments of the Fidelity
Trust Company. the West Side Trust Com
pany and the City Trust Company, made
at the close of business under date of
August 7 show the following aggregate
items: loans. 81. 1892, 1915; investments,
$13, 715, 449. As. due from banks and cash,
81, 572, SOC. %; due to banks, $2,19S, 700.0 and
deposits, $14 AS. 364.O6.
In commenting on the conditions of the
local securities market a local broker said:
During the past fortnight dizziness dom
mated on a more extensive scale than 1t
has the entire spring and summer. Trad
ing in securities outside of municipal
bonds was very slack. In other words, the
market was almost dead. The heavy de-
cline in the New York stock market
stocks have caught numbers of investors;
therefore deterring buying of New Jersey
securities. There Is only one encoura ging
feature about the local market. and that
Is that holders o securities are not anx-
ious to sell. No change for the better has
taken place in the local money market,
and. in fact. from the reports of the ma
tional banks II seems that the market has
grown harder"
A large iron and steel plant, involving
an investment Of about S11.0O0.0 600. is pro-
jeeted at Augusta, Ga, by George Wilson
and w. j. Moore. III are said to have
the backing of French.an Swiss capital.
The three large electric companies In the
first half of the current year showed an
average increase of more than 30 per cent.
in orders received, and sales billed as
compared with the corresponding period of
last year So far as increased business is
concerned. this establishes a new high
record.
About $780, 900 a week Is to be spent by
the United States Steel Corporation in i'm
| provements and extension to the Pittsburg
district. This is the announcement made
by an insider. and is confirmed by the re-
| port showing the corporation has spent
19.00o.O 900 in six months. and will continue
until the end of the year, making a total
of S3S. 00o. 900 for the twelve months or more
than $4,000 weekly.
]. S. Bache & Co. say: 1.-THE tremendous
effect produced upon the stock market by
the wrenching efforts of the government
have depressed the listed prices of securi
ties to a point where. were the horizon
clear, investment buying would begin with
alacrity. AS it is, only the courageous and
farseeing are a~vailing themselves of OPP
portunities, believing in the outcome-in
the future. Capital, however. takes a long
time to recover from such events as are
taking place, and after some slight steady
ing advances the market should settle
back
Henry Clews said: "The outlook for the
stock market is hardly promising. We can
only continue our advice to our customers
to be cautious in getting into debt. Stocks
even at these prices cannot be regarded
as cheap so long as money commands its
present rates, with the prospects of going
still higher. There is no real cure for the
present congestion in the security markets
except liquidation, which is n painful but
necessary remedy. A considerable short
interest has been developed, the covering
of which may ut any time cause sharp
rallies. No permanent rise in the market,
however, can be expected until money
rates return to the normal. This cannot
be accomplished until securities nave
| touched a lower level"