The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-08-24
ALL LOCAL
SECURITIES
TAKE DROP
Due to n. Y. Slumpa and Tight
Money Market Public UtiIi-
ties Fall z to 8 Points.

quite a lullOlC III bihC 10 49,
of local securities took place this week.
Bonds and stocks of the different pub
lie utilities corporations lost 2 and 3
points in value. Every one of them
was affected by the depression. North
Jersey Street Railway bonds dropped
from 20 to 81, white Line bonds from
66 to So, United Electric bonds from
651k to SO, and Consolidated Traction
stock from 20 to 68. Public Service GER
tifeates fell from 621s to so. All the
figures quoted are from sales made
Newark Passenger bonds sold weak at
104, and Newark Gas bonds at The same
figure. Hudson ounty Gas bonds sold
at 101, a loss of l point, and all the
gas stock fell off in the bidding, but
no sales were recorded.
There was no trading in bank and
trust company stocks, except that some
stock of the North Ward National
Bank sold between 335 and $40, a loss
of % points. This shows how the stock
of other banks would be affected II
sales were made, but no stocks were
offered in the market. 1t was the same
with life and fire insurance stocks.
There was no dealing in them. Every
line of securities fell off in value in
the bidding.
Low prices caused considerable trad
ing in bonds, however, men and women
who have ready money investing be-
cause they are confdentthe bonds will
appreciate in value when the present
unusual stringency in money passes
away. But the heaviest investments
were in the last issues Of Essex County
and Newark city forty-year 4 per cent
bonds, which are not taxable. One
man drew $50, 900 from his business to
invest in these bonds because they are
safe if serious financial trouble should
come.
Brokers and fnanciers said the heavy
losses in the market value of local Sc
curities was due to W causes-the
unfavorable conditions in the New
York stock market and the universal
scarcity Of money. But local condl-
tions are better thar in New York,
because for more than a year invest
ments here by individuals and institu-
lions have beer light and the banks
have not charged large rates for loans.
They are now cautions In making
loans. however, and even business men
are advised not to borrow too heavily,
But people who nave balances In bank
have been and are buying non-taxabh 4
per cent Newark and Essex County bonds
to hold. This Is shown by the fact that
]. 8. Rippel, investment broker, who
bought the last issue Of county bonds
$500, 900 w~orth-has sold one Sl5O'0eo worth
Mt 1O1. Six years ago county bonds sold
at III. He has also sold nearly one-hai
of the $1,165, 900 of Newark school bonds
he purchased. They are cheap at 1929 10
10s. but this is better than New YORK
city can get for its last issue of BONDS.
The scarcity OF money has something 70
do with this, but another reason is mat
in the last six years New York mas
added over $3.50, 000.0 900 to her bonded deot'
making the total now over $500 O0o,Voo.
Then 1t is claimed by Chicago that New
York owes her 100000 900, and that II IL
should be necessary, that sum coulu 10
drawn from Wall Street and taken west
A Chicago banker told a New Jersey
friend this week that this may happen II
financial conditions do not improve.
nTbe preat scarcity Of money for use In
business enterprises is not confined to the
Tinted States said q local hnancier.
conditions are the same in European
countries. Our big railroad corporations
found this out when, after borrowing nun
dreds of millions of dollars from our bank
md trust and insurance companies on thsH
bonds and stock. they tried in vain to
negotiate big loans in London, Paris ard
Berlin. Then they issued short-term notes
raging 6 and 7 per cent. interest end BEGAN
peddlinE them in cities. WI ana even
villages In the Western States. For a time
people, tempted by tie high interest rate,
r. 4. "a t1,air covipos from hanks and amrtiad
old woolen stockings to buy the notes.
But Western new spapers warned the peo-
pie that they would make money scarce
and business bad IN their States. and bank
ers also advised them to the same effect.
Now few of the notes are sold and the
price is lower than when they were frss
I'VE have been doing business too much
on paper, on promises TO pay, in this
country, and borrowing enormous sums
to put into all sorts Of schemes. Condi-
tions must be changed or we will have
serious financial trouble. / believe the
national banks and the trust companies,
which in large money centres put out the
cash of the big life insurance companies,
can change present conditions for the
better. If every one of these in the United
States would refuse to give spectators
or corporations more than 50 to 70 per cent.
of the amount of the loan asked 1t would
relieve in time the money stringency. Our
conservative Newark banks accommodate
their depositors, manufacturers and mer-
chants before loaning to outsiders. That
should be the policy Of all financial in
stitutions in our country. 1 have strong
hope that money will be plenty and busl-
ness booming by e spring"
Following is the range Of prices and
securities of the local market. as furnished
h., . DfrHaI Te0 DroaI dtraafs