The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-09-14
STOP
LOANS TO
B. & |.
Money Tight and Investors
Cautious. Buying Only
GiIt-edge Securities.

Stringency in money continues in
Newark as in all financial cities, large
and small. in this country n in Euro,
pean lands. and there is no assured
prospect of a loosening of conditions II
the near future. The great bidding fol-
the $4,000, 900 of New York city BONDS
thrown on the market at Az per cent
interest gave promise of a revival ol
business in the local and outside mar
kets. But it was only a flood in the
pan, and after the entire issue of the
bonds was 1oated the other securities
that had risen a little In market value
fell away again.
Those who bought in the Newar
market this week invested in what is
known as safe securities, such as New
ark City and Essex County 4 per cent
bonds, and a large number of these
bonds went into the strong oxes OF
men and women who keep cash bal
ances in local banks to their credit
and who therefore IA draw u money
even If the banks are short of ready
money. There was only fair buying of
trolley. electric light and power and
gas ScCuTlllcSs anu li0 PAiSC
advanced a fraction, while there
were small declines in others from the
closing quotations last week.
Newark banks and trust companies
have been forced by money conditions
to decline to make loans to local Dullu-
ing and loan associations. Some OF
these have been borrowing money from
the banks at 4 per cent. to loan to mem
bers on mortgages that paid 6 per cent.
interest. Building and loan associa-
lions should moi loan more money to
members than they have in bank TO
their credit, but they have, in some
cases, beer borrowing large sums above
their receipts over expenses.
Banks have declined to loan any more
to some associations on the excuse that
they have no money to spare. one BANK
has already cut off a total of $OO,OO0 OF
loans to such associations, and other banks
have reduced such loans from 100000 to
$4,000 each. If the stringency in money
shall continue through the winter, and the
Indications at present are that II Will,
any association that porrows thousands OF
dollars in excess of the amount Of cash
it receives in the monthly payments on
shares of stock would be in trouble If
serious financial times should come. The
safe way Is to keep within the amount OF
money paid into any of the building and
loan associations in a month or three
months or more.
Local banks have to make loans on
good securities to manufacturers and
others who are depositors, and this takes
A very large sum each week, for Jewellers
and other manufacturers of articles for
the Christmas season must have cash to
pay for raw material and to pay their en-
ployees, for collections on bills, for fin
lshed goods sent out are very light, ane
therefore conservative business men are
curtailing the output sold on thirty Il
slxty-day credit.
A disturbing factor In the New Yorl
Stock Market and the West this weel
was the antics of copper stocks. Anal
gamated stock, which had been boone by
Standard Oil and other big holders ano
manipulators, has deprecated rapidly, ant
Friday fell to 90, closing on a slight rally
at 81, though picturesque Thomas w. Law
son, the Boston broker, who had beer
twice wrecked by the SYSTEM" as hi
named Standard Oil, had advised the pub
lie to buy at so and below and hold for
rise. Now spectators are asking II a
son is training with the Standard OF
crowd again or has been tricked once more
The price of copper metal had been run III
TO 81 cents a pound, which is far abov'
its intrinsic value, and, of course. 1t ha(
to drop, and 1t fell to 10 cents when /
came out that instead of a shortage of thu
metal there Is a surplus of 20O,OOO,0O
pounds for sale. Local securities wer'
alphabetically depressed by the tumble
in copper securities.
In the local market this week Consolida
ted Traction bonds sold at 101 to 102, a gail
| of half a point, and the stock sold at IS I
10. though one sale was made at g.
white Line Traction bonds went up
point to SO under a fair call for them, an,
North Jersey bonds remained at 81 TO 6S
Public Service notes sold up half a poin
to 80 and the certificates at 60 and COZ
United Electric bonds were dull at 62la t
63ls, and there was no change In the quo
tatlons of bank and insurance stocks, non
being traded in worth comment.
As predicted in this column for severs
weeks, the big railroad companies hav
not got all the money they hoped for fror
the millions of dollars of short term note
they issued at the high interest rates of
and Z per cent, and therefore they hay
stopped improvements and extensions. Thl
will cause a reduction in the orders 70
steel rails and the new steel cars 1t WI
proposed to build, with the result that tn
steel trust and other producers of stet
products for railroads will be curtailed to
very large extent. The railroads canno
get the money they need from the bank
nor from the people, and the promised dis
tribution by Secretary Cortelyou of $50
100000 among the national banks from tn
United States treasury has not material
lied, and even If 1t were already in th
banks it would give but very little relic.
as predicted in these columns from the frs
and now admitted by New York papers.
Following is the range of prices an
securities of the local market, as furnishe
by j. S. Rippel. 100 Broad street:
COUNTY AND CITY.
Bid. ASKED