Lewiston evening teller. [volume] (Lewiston, Idaho) 1903-1911, 1907-02-14
BRIEF RESUME
MONEY MARKET
Henry ClewS Tells Why
Markets Are Now
Unsteady
Special Correspondence.

checked, and a moderate recovery en-
sued, largely the result of short COW
ering and somewhat easier conditions
in the money market
Recent events disclosed the fact
that big holders after selling quite
considerable quantity of their securi-
ties had encouraged the decline and
bought a part back again on the low
er market. Under present conditions
operations OF this sort are probable
and profitable, and while continued are
likely to keep the market in a fairy
active condition.
ices have now had a decline Of
about ~ points in the leading shares.
individual stocks showing a much
larger fall. The element of greatest
depression was the continued offering
Of short term railroad notes.
Many Bonds Are FIoated.
Last week it was stated that nearly
$40, 100000 Of these had been issued
since the first Of January.
This week an issue Of $6.5o0oo
Rock Island notes was announced and
rumors are current that the New
Haven, Pennsylvania, Reading Erie.
Baltimore & Ohio and other roads
would also he in the market the first
onnortunity with additional amounts
OF these notes
The placira ~ $40 onr 600 New yor,,
o'tv bonds IN an income basis Of
Der cent Illustrates very nlajnIv the
erect Of continued demands upon the
money market. 1t Is worth noting that
none Of these new issues was over
subscribed as. is the case under or
dinarv conditions
Means Firm Money Rates.
To what e~tent these demands will
run It is impoesihle at tre present mo-
nent 70 conjecture. The requirements
OF the railroads. however. in many
cases are extremely urgent. being nee
essary to provide for traffic exnan-
sion.
Of course this condition of affairs
means firm monev retes for some time
to come. the effect will be Inevitably a
restraint upon general business and
new ventures. Such restraint was
needed and will he wholesome AL
ready there is p much more conser-
V1tiUa cTni1-if IN,
dustrial circles. and the same is mani
Testing itself amono railroad ma nagers
Conditions Are Unsettled
The New York Central has practi-
callv announced tbot IT'S nrotect41 i'm
provements VIII be curtailed as far
as possible. urtil conditions IN the
money, raw material and labor mar
kest are more settled
ads are also annorn r.
a policy of retrenchment in order to
anticipate the effects of present con-
ditions. Many of them are now under
heavily increased operating exuenses
due 20 advances in wages ana incress-
! en cost or materials.
The effect of these already on net
earnn~S is most startling. state
ment has been published showing that
out of 30 roads reporting more than
! 30 show a decrease in net
Among those showing diminished
net earnin@s were Erie. Chesapeake q
Ohio, Grand Trunk, Canadian Pacific.
Lehigh Vale Norfolk & Western.
Hooking Valley Southern Railway and
others.
1t is we'll known in railroad circles
that managers are Great 1eal cor
cerned over the future II net earnings
and more or less "a < is heard Of
slight advance in .'ates to offset in
creased expenses
is probable that very small per-
centage of increase in rates would
make a decided difference I'm net re
suits, but at the present state of pub
lie opinion railroad managers hessi-
tate to take such a step.
Money Market Conditions.
The possibility OF a business re-
action has also heen considered as
this would he Quickly reflected in the
smaller gross earnings.
Somewhat easier conditions have
prevailed in the money market and
the imports OF moderate amount Of
gold tended to improve local senti-
ment. At the moment. Eurone shows
no pronounced opposition to the m ove
ment of specie in this direction: and
the Indications are for further moder-
ate imports.
Should, however. American de-
mands become heavy or persistent.
resistance would probably oulclr,v