New-York tribune., 1908-01-06
THE WEEK IN WALL STREET.


GINNING of another period of business acuNig
and prosperity; although, as the causes ~n,sA
resulted in the panic were al "ofh te -
vance of the month of convuis1oh' recovery .ly
reasonably be expected to De CUT .i
slow The currency premium has finally olsap
,.,rad having persisted for weeks after Sooo
iuaees of the situation had believed tnat i'S
end was at hand, their judgment naNiie 49,
based upon misapprehension OF the sad'e ~ -
mind of the country bankers VINO long dlIei 'iie
crisis had been passed continued 10 naHi'alh
,ba;r rasarres at figures far above the amounts
raouired bv law But the premium Slowly
but stead dy declined the bankers Oh INC iieelo
gained reinsurance, and now their suipiu Auiuo
are being forwarded in heavy voiun'e 10 .ni'
centre, movement which Is eAlS0'u " ~
tinue for weeks TO come
Tho high rate for money has been powerlul
in bringing out the boarded funds
of the Interior for which prohtaple employ
is boped to be found here: but TOWARD Ile S'oS9
of the last week the first signs OF ease III 'l0
money market began to appear, the ruiihs la'3
for call loans having been as low as pei ceii'
on Friday, and time money, althousn sun II
scantv supply, having been aVallaole IN rdtlei
larger amount than previously since the oesii-
ming Of the panic. The Secretary Oh 'he
rry who at the height of the panic gave Ni'ei
relief 10 q desperate situation by putting more
than s3Ooooo00 into the local money MAJ net
,aducinp the Treasury's working balance 10 an
exceedingly low level has judged 1t expeo1ehi
IN recall about s5.00o,000 Of the speciai oePosi's
from depositary institutions IN TINS city' idtoI
than levy upon depositarles throughout 'ii0
J-nited States: and so much confidence Is felt IN
~; I,dgroenf that this action has become
contributing factor in the Strengthening OF con
6dence Further Withdrawals are prooap!e
within short time, as the needs OF 'le gov
ernment may require. but they can easiy Dc
sustained by the local banks Inc "eek!y ST.
rnent Of the Associated Banks on SATURDAY
showed the deficit In reserve to have oeen re-
duced during the week by nearly ssooo'oVp'
standing now at only s11,509,55o, agahsI 'he
vast total of s54.1o3.6o0 on November z'' anu
with New York gaining each week from tAe
interior and the demand for money continuing
to slacken. as business slackens the dencit VIII
rrobs bly by the end of the current monIh De
transformed into surplus
The operation of the Clearing House certlh-
cate plan has been a successfully guaroeo Sc
cret but ii is known that the volume OF cel LII
Gates has been greatly reduced, ana ProliiliieHI
Clearing House bankers look for the cancellation
and retirement of the last of the certlhcaleS
before January is over. The certlhcales pear
6 per cent interest and with the approach Of the
money market to level under per cent the
retirement of these obligations will be hastened.
view from a distance is more comprehensive
than me from a point close at hand. and per-
hans for that reason the action of the Bank OF
England in reducing last week It's minimum raLS
OF discount from to per cent alded mate
rally in the Improvement OF SeiitliiIeIl
that step had not been expected for week or
two TO come and was taken s rejecting the
Judgment of the banks directors-whose Judg-
nent carries weight in every financial centre
that the situation here was decidedly bettered.
The lowering of the banks rate was one OF
the stock market factors on the first business
day of the new year. and factor so important
and encouraging as to overcome the beareh
infuence of the news of a recelverShip for the
Seaboard Air Line Railway Company Ii was
soon recognized that special reasons existed 10
account for the Seaboard's difficulties, referabIe
to the weakness of that system during Its en-
tire history and to the hostility toward it of the
Governments of the states through which its
lines run The latter cause may be presumed
to operate also in the case OF other ROADS IN
Southern territory, but signs are multiplying
that the anti-railroad propaganda in the South
ern states has reached its climax OF activity and
that the future path Of the other roads will be
easier than il has been during the last year or
so. In the West, well as in the South, many
burdens have been placed upon the railroads.
which added TO the falling off Of business, with
cut as yet corresponding decline in the expense
Of operation, may result in cutting Of divi-
dends but in general ii may be said that the
railroads are in a sound condition and able to
weather period of diminished activity ana les
sened revenue Until money becomes reason
ably cheap the enlargement Of facilities and ex-
tension of lines, necessary for the handling
next period of general business growth Shal!
oDen must be deferred; but meanwhile the
roads, with few exceptions, VIII need compafa-
lively little for up-keep and are in position to
congratulate themselves upon their pursuance
Of policy of having made betterments in times
OF plenty which Will enable them 10 tide over tlie
interval of depression.
Revival of the report that the government
would institute proceedings to compel the Union
Pacific to divest itself of its direct control of
the Southern Pacific caused only the slightest
fuctuation in the market prices of the stocks
of the two roads. That the Union Pacific has
no intention of including the Southern Pacific
in the plan now being worked out by commit
tee of its directors for making the Union Pacific
q railroad pure and simple by segregating its
investments in the shares of other roads is
known: and it is certain that 1t will resist to
the utmost any attempt to take from II the
Southern Pacific, for the reason that the Centra!
Pacific controlled by the Southern Pacific, is
the line by which the Unicn Pacific gets to the
Coast from Ogden connecting line, and not
parallel and competing.
Business on the Stock Exchange last week
showed steady increase in volume from day to
day. but the transactions are still restricted in
amount and no real activity Is probable in the
near future Interest and dividend disburse-
ments this month will aggregate about S1s5.000,
oo0 and great proportion of this vast sum
will find its way back into the market in in
veStnentSy Inc pond department, however, is
more likely TO profit by this buying power than
the stock department, according to all prece-
dents The enormous shrinkage in market
values OF stocks has probably discounted in the
majority of instances such reductions of divi-
dends as may be announced. and stocks bought
now will probably yield excellent profits to their
purchasers, for the depression-although the
situation is complicated by the fact that presi-
dental campaign is at hand-cannot last for a
disastrous length of time, with the farm lands
and the mines adding enormously to the wealth
OF the country and with the revival of confidence
- L. raEaA