The Washington herald., 1908-02-10

New York, Feb. Authorizations in
prices Of stocks last week continued TO
present-up TO the last two days Of the
period when a rather sharp decline set
in-oniy the tiresome and desultory rec.
ord Of narrow and trivial speculative
movements. Commission house business
was almost entirely absent, and all COM
petent observation was 10 the effect that
II it had not been for the transactions
of perhaps a dozen room-trading opera
tors the market would have reached as
low a point Of inactivity as ever in its
history.
As it was, dealings contracted progress
sively and the general tendency of prices
was 10 sag. Some little hardening IA
money rates in the foreign markets was
noticed, owing, as il seemed, to new is
sues OF securities there and 10 the large
demands for gold now being addressed
to London from various quarters. Al
the same time the investment markets
abroad, though duh were firm, and were
generally the scene Of a more confident
country. Indeed. the bond market here
last week was specifically depressed. OF
at least placed O. a waiting attitude, by
the natural desire on the part Of dealers
and buyers Of investment securities 10
await the result of the city of New
York's forthcoming sale Of $J000.019
municipal stock on the 14th instant.
City No borrower.
These enormous issues Of New York
City bonds in the last six months long
and justly considered as being second
only in point Of security 10 the oblga-
tions Of the national government, have
unquestionably played decided part in
whatever general weakness in bond
prices has ieen visible in this period;
and everybody in the financial district
VIII be overjoyed when it IS positively
known that for six months or a year
ahead the city Of New York is no longer
to be a borrower.
y somewhat more cheerful face ap-
peared TO be placed last week upon GER
tain aspects Of the business situation,
but such evidences of Frightening pros
poets were not strong enough. il must be-
confessed, 70 constitute d material stock
market factor News Of the re0peuing Of
certain factories was coupled with state
ments that other manufacturing plants
such as particularly the great Baldwin
Locomotive Works were likely soon Z
be shut down. Railroad earnings were
better in some respects and poorer in
others
The money market. strictly so consid-
cred. seemed 10 pass entirely out OF
financial reckoning. and although in the
fore part of the week there WAS more or
less speculative selling Of stocks which
was attended with rumors affecting bank
ing credit this development was after all
relatively Unimportant.
Banks Are safe.
The stories In question were scsuda-
lousy false, and il may here be said that
there is not the slightest danger now o.
the failure or suspension in the near fu-
ture OF any financial institution in this
city that is solvent In either the popular
or banking sense. Banks that are solvent
in the popular sense are. OF course. those
that either have such large cash reserves
on hand or are In possession Of securities
which can be readily converted into cash :
that they are able 10 meet with little or
no outside assistance All demands that
may be addressed % them within rea-
sonabIe length Of time. There are other
banks that may not be solvent in the
sense just described, but are solvent from
"a banking point Of view. that is thar
their assets are sufficient 10 meet all their
liabilities, but may Is of slow character,
or. in other words, not marketable.
So far as influences originating on the
floor OF the stock exchange itself were
concerned, the decline in the securities
Of certain railroad companies. especially
that OF the Rock Island Company, vas
undoubtedly as powerful a market factor
as any other one cause. It would not
surprise most people If e reorganization
Of the Rock Island Company-not. Of
course. Of the old Chicago Rock Island
and Pacific Railway COmpauy-was iu1-
pending, and. indeed. il IS practically ad-
mitted by the Rock Island interests them
selves that the holding-c0mpauy scheme, +
as il was matured and established sew
eral years ago, has now been disclosed
as possessing many faults which deserve
10 be Temedied..
Scheme Not Popular.
The scheme has never been popular and
has excited what is i'm many WAYS an
unjust and unwarranted prejudice against
the Rock Island property: nor has it been
found possible 10 allay this prejudice by
pointing out the indubiiablo fact that the
market value of all the Rock Island
stocks and bonds to-day presents a lower
capitalization per mile than that Of any
other of the great Western railway or
carnations.
The chief matters Of discussion in Wall
street last week We're. however. those Of
a political or semi-poliUcaI nature The
Presidents special message TO Congress
was still the subject of d financial inter
est that was strained TO the point OF
intensity; and during the week William
J. Bryan made two speeches in tho
city which were probably listened 10
by a larger number than ever before Of