The San Francisco call., 1908-12-24
LOCAL MARKETS
LOCAL FINANCIAL SITUATION
Conditions Bright, as Found by the
American National Bank

The monthly financial letter of the American
national bank makes the following showing:
resents the that will be paid in San Fran
cisco during the next 30 days In bond interest.
savings bank interest and dividends to stock
holders of large corporations.
.'Of this amount bond interest will contribute
upward of $4,50o,o 900, representing coupons of
securities dealt in on the local exchange. This
does not mean of course that all such securities
owned by local investors, but the balance
is easily maintained by outside securities owned
here.
Savings bank interest contributes more than
81, 100000 TO the total the deposits In local
savings banks being now about $137 ,0O0, 600.
Last year the rate of interest paid varied from
800 to per cent per annum, but this year a
uniform rate of per cent is maintained Add
to these figures SI75,000 payable in dividends to
stockholders of banks, 100000 distributed
among share holders Of sugar companies, other
thousands handed out by insurance companies,
service corporations and the like, and the $I0,-
100000 mark will be reached without a bit of
crowding or stretching.
ABSORBING BOND ISSUES
I'm this connection another issue of San
Francisco municipal bonds. amounting TO about
S5.000,o0o, will soon be placed on the market.
The previous issue, originally subscribed on a
basis of 4.25 selling "a 40 basis.
finding ready demand In the east, and 1t is ex-
pected that the city will realize a more satis-
factory price for the second issue than for the
first.
1.-The capacity of the investing public to alb
sorb bond issues is shown by the fact that dur
Ing the first IL months of 1908 the railroad
and industrial corporations of the United States
lsSueu more tn8n Sl9o,UUu.bU worth or long
term securities of this character, against $780,
NOoOOoO for the previous year. Recently the gov
ernment offered s30.O00.000 of Panama bonds.
yielding the handsome income OF per cent per
annum, and they were Immediately snapped up
at prices above par, being about three times
oversubscrbed.
These government bonds sre of course not
sought for Investment, but security for ma
tlonal bank circulation. As an interesting side
light on the peculiarities of our currency sys-
tenn it might be noted that the total circulation
or national bank notes In December, 1906, when
business was booming. interest rates high and
money In great demand, was about $685., 600, 900,
whereas at the present time of comparative quiet
the bank notes outstanding amount to $685.
000, 600.
GENERAL BUSINESS
General business in San Francisco is just
about what is usually expected at this season.
and In ordinary lines there is normal and
fairly satisfactory volume of trade. Since crop
moving began in the early fall the improvement
has been gradual and deliberate and this condi-
tion is likely to continue.
Sales of green fruit, such as plums, apricots,
peaches. cherries, ETC., from northern and CEN
tral California brought to growers this year an
estimated total of about SIS. 900. 900 from east
ern purchasers, and apples attracted another
Orange shipments from the northern citrus
districts have recently begun, and by the mid
pouring the golden fruit by carloads into east
ern markets. 1t is estimated that the exports
OF oranges this season from the southern dis
tricts will reach 5000 carloads, a slight in
crease last year AS each car nets the
grower something like S400 to $500. it will be
observed that the east will contribute nice
package OF spending money to agriculturists
between now and spring.
In the matter of more enduring food prod
ucts we are little less fortunate. Our ware
houses contain large quantities of raisins and
VINE. OF canned fruits and vegetables. which
we should be glad to turn into ready cash. The
capital tied up in these unsold products amounts
to very considerable sum-
While the prospect of tariff revision has
caused some hating and uncertainty in business
circles the issue is far overshadowed in Cali
lorna By consideration of the proposed increase
OF railroad rates. to take effect January 1. 1t is
now recognized that no legal preventive can be
apphed and shippers will rely on the pressure
OF strong and united public sentiment against
the raise Conceding that the railroads of the
country. generally speaking. need additional
revenues 10 maintain and extend their equip
ment. no such plea can be made for the trans
continental lines which carry the products of
TINS state Judging from the published state
ments of their earnings
MOVEMENTS OF EXCHANGE IN DECEMBER
Tine lack OF cotton exports and the renewed
gefher with the usual holiday remittaDces. have
been the cause of much frmness in European
exchanges. France. not satisfied with buying
All fne available gold supply in London. has
turned 10 America. importing several millions
from inns quarter The reason for this steady
accumulation Of gold. which has been going on
at the rate of about So 900. 600 week during
probably will explain
Eastern EXCHANGES ruled below par in San
francisco during the frst half OF the month.