The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-08-17
No Foundation for RumOrS
Of Bankruptcy Of COn-
Germs in This City.
PRECAUTIONS BY BANKS
Metropolitan Situation Affects
Newark, but Financial In
situations Are Acting
Conservatively.

The tone of the local securities mar
ket remains dull and %stagnant. There
has been very little buying OF selling of
any account, and the market is almost
dead. Money remains tight, with the
maximum rate of 6 per cent. in ex-
~istence, but it will probably ease dur
ing the coming fall, because of the
enormous depreciation in the values of
stocks and bonds. therefore not re-
curing so large a capital to transact
business. 1t is said that in all prob
ability Secretary of the Treasury Cor
telyou will help the national banks by
depositing about $50, 900, 900, relieving
the money market.
Transactions were very few locally
during the past week, and of an in
vestment nature only. Municipal bonds
after being somewhat active have
slumped again. Some Essex County
As were disposed of at 101, while the
Hudson County As brought 1902. White
Line bonds sold for IS, North Jersey
As 6S, and United ELECTRIC bonds fell
off to 66. Life and fire insurance and
bank stocks remain quiet, prices vary
ing very little.
Nothing could be learned definitely as
to what effect the amalgamation by the
Public Service Corporation of it's sub
sidiary companies would have upon
the local market.
The financial situation in this city has
begun to approximate the conditions which
have existed in the metropolitan centre for
some months. All Of the local banks are
well supplied with money, but they are
carefully restricting loans and only their
hest auGtonaarc ara allowed tn borrow In
every direction the money situation looms
up as the important factor in the present
situation of the stock land bond market,
and it is believed by all local investors
that every financial transaction for six
months to come must be undertaken with
an understanding that nc relief to high
money rates is possible for at least that
period.
Up to the present local banks have called
few II any of their loans, but several local
investors who found 1t convenient some
months ago to secure loans from Jersey
City banks have been asked within the
past two days to liquidate their accounts
This was accomplished without serious in.
convenience through local brokers.
The danger to local interests in the pres
ent condition of the market exists In the
possibility of having loans called. Such
action on the part of local banks would
result III the HlhtlhS III tHe ihd net VI ihiSt
blocks of local securities and a possible
big break in their selling price. 1t is not
considered possible that the institutions
who nave made the loans will be forced
to resort to such an extreme measure, as II
would be n serious blow to practically
every investment security quoted by the
local brokers and might possibly force a
| number of investors into insolvency.
Rumors emanating from New York city
that a large industrial corporation in this
city was on the verge of bankruptcy have
been shown to be absolutely baseless and
untrue. At the banks in this city today
the information was obtained that no New
ark establishment, either large or small,
was in any danger of bankruptcy.
Following is the rarge of prices and
securities of tho local market, as furnished
by ]. S Rlppel. 760 Broad street: