The Washington herald., 1907-04-04

ments Of great substantial importance TO-
the stock market appeared in the morn
ing newspapers to-day. The election IN
the city of Chicago. which took place yes /
terday, resulted in a decided rOut Of the
advocates OF municipal ownership. and
was il the nature of the most signal
condemnation that has ever beeIA given
IN this country TO the practical applica-
ton of socialistic theories. The city of
Chicago. as all people at al familiar with
public affairs well know. is the one place
in the United States where the municipal
ownership idea and general economic
propaganda of similar sort has long held
greater sway than anywhere else in the
nation; and so vigorously have these
theories been pressed in Chicago that for
a considerable length of time. the expert
ment has been made of running the city.
TO a great extent. along these lines.
The people of Chicago have become
thoroughly Disguised with the trial They
have found as all other communities IN
our own and other lands have found, who
have tried TO put such IDEAS into practice
that the end of them All was costly fall
ures; and the election In Chicago yester-
DAY, taken in connection with similar eX-
preston of public sentiment in recent
months IN England and Germany shows
that whatever may be said in socialistic
newspapers on the subject, deep-seated
reaction is in progress in the public mind
against these theories that have SO long
troubled the financial peace of the world.
Nay Affect Presidential Vote.
The vote in Chicago affords convincing
testimony that radical views are not like
y TO find favor with the people of the
country at the next Presidential election.
IN the second place. the Secretary Of the
Treasury promulgated to-day his long-eX-
pccted notice to- the public of the ar
engagements that have been decided upon
for providing for the payment of large
amount OF government + per cent bonds.
maturing ON July 1 next
The Secretary declared his intention of
converting $4,000 coo of the bonds into
per cent government issues and of paying
of the remainder Ia cash. There are to-
day aboat $9S,00o,eo0 of these per cent
bonds outstanding. and of this, S2S00010)
in round numbers, is deposited with the
government by the national banks to Sc
cure circulation. while SlDJ00. 600 is also
held by the government as security for
deposits of public funds.
The decision of the government there
fore to convert S50.000.000 of the bonds
into . percents means, in effect, that the
government viii allow the banks to make
substitution of new per cent bonds for
the Cancelled percents; that there viii
De no retirement of bank-nOte circulation
or enforced transfer of government money
-Om the banks TO the Treasury as a re-
suit of the operation.
Much win Go Iato Market.
About $4S00.Ol0, therefore, viii be paid
into the money market on or before July
i next in cash. for the redemption of the
bonds I'M question Not all of this money,
Of course. viii be taken from the vaults of
the Treasury proper, but great portion
OF it viii be so taken, and is, indeed now
being placed in circulation through the
Secretary OF the Treasury's offer on
March IA last to redeem at once SO, 900
OF the bonds.
Up 10 the present time fun response has
not been made 10 this offer because many
persons holding the bonds We're ignorant
of the terms upon which a possible re-
funding on a more advantageous basis
might take place; but now that the terms
have been disclosed and it is seen that
there viii. be small profit for any but a
national bank IN an exchange of the old
bonds into new per cents, the presump-
ton is that the $l1,000000 Of bonds that
can still be turned over to the government
under the Treasury's offer OF March II
viii be quickly presented and the money
market benefited thereby.
Money Market DemOrnIiHed.
Whether as a result of due reflection
concerning this. or upon consideration -of
the fact that the local banks have gained
SS,2#,O 0o in the week thus far, and that
the indications are that the bank state
ment at the end of the week viii show
an even larger increase than was re-
ported last week, the money market to-
day was practically demoralized.
Call money rates fell to I per cent. the
lowest of the year; and although a nom
inal quotation of 80 per cent for time
money for long periods was maintained.
only one or two Instances were known
where lenders managed to put out funds
on this basis. For the shorter maturi-
ties. time money was offered toward the
close of the day at per cent, without
finding takers. and il was the prevailing
opinion in banking circles that for an
indefinite time in the future il would be
hard to lend any time money above a
Per cent rate.
Naturally, in consequence Of this, a
sharp advance occurred to-day in the
price of all the different railway short
term note issues, while there was a most
decided quickening in the general bond
market
Gold ResOId in London.
Because of these developments. there
was a reseuing in London to-day Of some
of the gold recently bought for export to
this country, and in consequence Of the
same general conditions, discount rates
both in London ana Berlin to-day we're
lower even though the Imperial Bank of
Germany made a poor weekly statement
Owing, as il seems, TO the circumstance
that technical market conditions to-day
favored very strongly a reaction rather
than an advance in prices-this consisting
chiefly of the fact that the market in the
last week had risen with great violence
and without any recession-aIl these ben
eficial influences failed to exercise the ef-
feet that they logically should have done
and must exercise, of course and in due
season. The speculative Imagination OF
the moment. too. was led captive by the
thought OF the big row in progress be
tween the President of the United States
and the president of the Union Pacific
Railroad Company upon the matter Of
financial contributions TO the poiacal
campaign OF 1904. and in general. the ad-
verse Influence Of this affair ia the mar
ket appeared 10 consist mostly of spe-
cles of broad disgust that people of such
high position in the country should be en-
gagcd in such cat-and-dog wrangling.
nu.sEr