The morning journal-courier. (New Haven, Conn.) 1907-1913, 1908-06-29
MONEY AND TRADE
Unsatisfactory Condition of
Railroad Affairs Still
Remains.
UNCERTAINTY
Clearing House Returns Make Better
Showing--NO Clouds In None
tary Outlook.
AL UNCERTAINTY

New York, June 2I--In anticipation
idency, the stock market underwent
considerable and prolonged advance,
Upon announcement Of the event
prices AS usual, reacted: early buyers
having taken profits and left the mar
ket with inadequate support. With
the Denver convection close at hand, ana
the probabilities OF Mr., Bryan's nomi-
nation daily strengthening, there Is
moro or less shrinking In values. and
the market Is discounting his nomina-
ton by a display of weakness, much
In the same fashion that It anticipated
Mr.. Taft's nomination by show Of
strength, Moreover, all persons are not
equally confident of Mr. Tafts election
In November next. A goodly number
consider the outlook still doubtful and
act upon their convictions; and While
they may be in error they are SUN
ciently strong numerically to give tho
political situation a moderate degree OF
uncertainty
In the business outlook there Is little
change, and very quiet summer for
all lines of industry is In prospect II
is quite evident that further period
OF rest will be necessary for GONZALES
cence after the severe crisis Of Last Oc-
tober. Recovery will require more time
than some impatient people will admit.
The situation Is steadily improving, and
the outlook Is hopeful. The unsatisfac-
! tory condition OF railroad affairs Is still
an element to he reckoned with Latest
reports OF earnings continue unsatisfac-
tory; the gross returns OF railroads re-
| ported In May showing a loss Of over n
per cent. compared with less than 90
per cent. loss In April, IA per cert in
March, 10 per cent. In February and .
per cent, IN January. II has thus taken
seven months for the railroads TO feel
the full consequences OF the panic,
Those consequences have grown stead
lily worse. The first effect was TO rem
der II impossible for the railroads TO
raise money for carrying out projected
improvements: the next effect was n
decrease In earning power, and COM
pulsory cut-down In expenses. Then
dividends began to decline, and now
the companies find themselves In q
somewhat serious dilemma. out NJ
which there are only two ways OF es-
cape, either recovery IN earnings
through business Improvement, or n
still further retrenchment in expenses.
Should the latter be necessary, It means
cut-down In wages or withdrawal
OF the advances granted to labor In
1906 and 1907. The most favorable fea-
| ture In the railroad situation Is that
the number of Idle cars Is beginning
to decrease Clearing house returns are
already making better exhibits; the de-
clines now running In the vicinity OF
is per cent. compared with 90 per cent.
and over few weeks ago. and this
In spite Of diminished speculative ac-
tivlty.
There are no clouds In the monetary
outlook, and We seem more likely to be
afflicted with redundancy OF currency
than scarcity. Interest rates are low
the world over: both domestic and for
eign banks are steadily increasing
their reserves. and gold exports from
at least on the first ~ August nearly
6i.o00,000 OF Spanish war per cent.
bonds became due. Whether these will
be refunded al lower rate OF interest
or redeemed In part or whole has not
yet been disclosed. In view OF the re-
dnrtinp In tbn tranui,rv and tho
fact that the fiscal year about to close
Is likely TO show deficit Of over 1852,
100000, the entire payment Of this deb
seems unlikely; the treasury, however
still has surplus OF over 1926. 5000 900
and OF this SlS5. 100000 Is on deposit II
national banks. II Is, therefore. To b.
presumed that the treasury will befor,
long make considerable call on The
banks: n contingency for which some
Institutions are already preparing. Mex
week nearly SlS0,000,000 interest ant
dividend payments will become due, A
result Of the panic this IL nearl!
s12 000,0 900 less In dividends than n yea
ago. Owing, however, to the Increased
output Of bonds and short term obliga
tions, interest payments are consider
ably larger than q year ago; so tina
the net decrease in interest and div
dend payments combined will be only
about 100000 There are expectations
Of q slightly better bond market baseC
on these large disbursements, but in
vestment purchases generally are beini
conducted on strictly conservative