The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1907-01-02

Now That the New Year Has Passed
and Dividend Money VIII Ere Long
be Pouring Back Into the Banks
Some Pessimists Yet Left, However,
Wild Speculation Would Soon Tighten
the Money Market Again-The Why's
and WherefOres.
The stock for 1907 starts in to-day
with some prospect that prices will be
lifted higher.
The pressure of tight money, which
has kept down prices, will, in the opin-
ion of many, be ameliorated as soon as
the $1S0,OOO,OOO of dividend money just
paid out finds it's way back to the
banks. The general conditions of bus
mess are splendid and no let-up Is in
sight. Net earnings Of the big railroad
systems, as a whole, show little signs
of falling off despite the increase of
WAGES.
In few instances, however, there
is falling off. Statements Of the tat
lantic Coast line, of Central of Geor-
gia and of the Chesapeake and Ohio
are among the number of those which
appeared Monday emphasizing this
feature.
The price Of copper metal is so high
that big copper companies must be
making barrels of money
OF course if Wall street rushes into
mad speculation the price of money
will shoot up again, as there is so.
much Of it needed in business, to say
nothing Of mining speculation, real es-
tate booms. etc.
The question is asked in view Of the
big demand for money in the United
States, can Europe, without impairing
it's own financial status go on placing
at our disposal resources which 1t APP
parently needs for use at home? If it
can. to what lengths is our own ex-
plotting process destined to go? II it
cannot. and if it recalls them, will net
our own position be affected as it was
by similar causes during 1902? Or if,
in spite of an effort at recall, the
American market bids so high as to
retain them, what is to happen on the
foreign market?
Loans of the New York clearing
house banks are about $5O,0O000O in ex-
cess of deposits, but 1t is thought that
the liquidation which has been under
way in the stock market will be re-
Aected in substantial reduction in
the loan item in Saturdays bank re-
Il, Fottv o1y 1,,oY,
contraction and an increase in cash
will narrow materially the margin now
existing between the two leaning ac-
counts in the statement of the lending
institutions While the outlook does
not favor an easy level of money rates
there is good reason to predict less
ening in the strain under which the
market has labored for so many
weeks, and it may come to pass that
quotations will decline to a level that
will attract an active inquiry for Sc
curities, especially as the greater num-
Der of issues show marked declines as
compared WITH the high prices of 1906.
Various Wall street brokers, speak
ing of the money question, were of the
opinion that the strngency would not
be materially eased for some days yet,
and looked for the market to reflect
this condition, perhaps more pro-
nouncedly than it had done already
Southern Railway is being tipped for
"an important advance but the net
earnings are not panning out big ow-
ing to the expansion of operating ex-
penses.
Bullish views on the traction stocks
come from interests who are believed
to be speaking not altogether for effect
or from personal motives pure and
simple.
The London statist continues to adj
wise caution regarding the money stu
alton over there, and says; "There is,
then, absolutely no need for anxiety,
provided only the banks and the dis
count houses here at home act with
ordinary prudence that is to say, if
they compete madly with one another,
of course, they will give the impression
abroad that the stringeney IN London
Is at an end and therefore that Lon
don can spare a good deal o. gold IT,
on the other hand, they cooperate
with the Bank of England, and make
the per cent rate effective, every
body will understand that the Bank
of England cannot afford to part with
gold and therefore Mr., Shaw will full
fill the promise he has made"