New-York tribune., 1908-03-02
THE FINANCIAL MARKETS.
no TRUSTWORTHT INDICATION YET FROM MOTE
MENT OF STOCKS.
Sor of ConfdnceRarood and State Commissions
Money Market Easy.
THE WEEK IN WALL STREET

The stock market had during the last week
days OF strength and days of weakness but no
days which might properly be called active. ana
at the weeks close as at its beginning, no DELL
mite trend in either direction could be observed
The occurrence of a period Of listlessness in
stock trading. following the partial rally from
the panic level. to have been expected; bu;
the duration of that state cannot be predicted
from the precedents supplied by former panlcs
and the course of the market after their sub
sidence. nor can il Vet be said with reasonable
confidence whether the current dulness VIII be
followed by upward movement or by break
TO lower levels. although well as can ne
judged at this time the change will be for the
better The disturbing factor of uncertainty as
10 the continuance of adherence to the sound
money principle a national policy Is not pres
ent at this time as at similar periods IN the
past. the Treasury. at former seasons or Crisis
far from being well fortified with cash, now has
the vast reserve OF s220000,00o on deposit Win
national banks subject TO withdrawal on de
mand. fund the control Of which viii enable
il TO meet without difficulty the requirements
Of a deficit in the national revenues ana l!ie
West and the South. in 1899 laden with mort
cages and restricted TO a degree in resources.
are the result OF many successive years ol
abundant Yields OF grain and Of cotton free from
debt and more than comfortably supplied with
money. Then. too. although in the years of
plenty there oVerexpansion in the industrial
field. as always occurs and extensions OF faclh-
lies for production and for Distribution were
carried out in a degree exceeding the limits OF
conservatism and putting an undue strain upon
credit. when the crisis came there was found no
such serious condition of overproductfon as that
which had retarded the recovery OF the country
from the effects of other panics; so that' nor
nally speaking. the revival of industry might De
expected TO be correspondingly the more rapid
for Notwithstanding the enforced economy which
is everywhere being praCtised, the needs OF thls
great people are constant and must be suppheu'
and by and by as surplus stocks are exhausted
a Quickened demand VIII find its response IN en-
larging output of manufactures ana IN lllcreaSeu
buying power among the people
But no real revival of enterprise and produc'-
i've activity be expected rntll after conn
dence shall have been restored for capltal Is
r,roverbiaIIy timid, and without the employ lntil'
of capitaI OF the accustomed great scale the
execution Of projects not strictly necessary 10
the existence of the people but conducive 70 iile
freer distribution and the cheapening IN price oI
commodities Of all sorts must be held IN suS-
7,eDse Signs Of Improvement in the industrla;
world are apparent. such as the enlargement u
the output Of the United States Steel corpora
ton. but they not plentiful and not decisive
and until there Is a subsistence OF the antl-cor-
poration sentiment generally exlSielii
and of the movement against offending corpora
tions which has had the vitaily Denencldl q
feet Of correcting many grave abuses ana mas
also accomplished the salutary result OF put-
ting the fear Of the law into the hearts OF cor
,,oration rnaaag gers who had come TO believe
themselves above the law, the apprehenslonS OF
capital will not be quieted. In the eAcl'eileH'
Of a Presidential campaign the corporations
and there are good corporations as We'll as pad
usually come in for more than their snare "i
public attention and OF criticism, and because
of that fact the process Of restoration OF coil-
dence NAV be longer than if the present year
were not in which Chlef Magistrate Is 10
be chosen
In the last week one railroad, the International
E. Great Northern. has gone into receivers
hands an occurrence not surprising, Tor the
road was known a weak one. out pTeclpl-
tated according to the adVices from IeAas' py
the action Of the Railroad Commission OF that
state in requiring the immediate expenditure OF
2 large amount OF money for betterments- The
troubles of that road naturally caused renewed
weakness in the stocks Of other Gould ran
roads. and rumoTs were current OF a similar
fate for one or more Of them, reports which,
however We're declared to be without founda-
ton II is not improbable that here ard there
in the next few months other railroad recelV-
erships Vii be announced. It IS certain that
they Will come, if authorities in other states
shall impose on railroads under their Jurisdic-
ton the obligation of dsbursing heavy sums
for improvements at a time when even the
greatest and most sound financially of roads
are limiting TO the minimum their expenditures
for maintenance account Reports Of railroad
earnings during the week have been poor as
they have been for many weeks and no i'm
provement in that quarter is yet visible, gross
earnings rejecting the subsistence Of the volume
Of traffic offered and operating expenses not
showing corresponding shrinkage-
The money market has been easy. the call
loan rate moving between the nominal limits
Of . and per cent, and time money after
slightly hardening in the early part OF the week,
Welding toward the close. The withdrawal of
government deposits from the local depository
institutions under the call OF the Secretary Of
the Treasury for the return Of S35,000,000 from
the banks of the country. has been going
and mere than oDe-half Of the amount required
from the New York banks has already been
placed at the disposal Of the Secretary the
total sum so withdrawn from them having been
rather more than that. as in some instance out
of-tovn banks have paid in their proportions
bv drawing on their balances here. The repay
nents to The Treasury had the result of de-
creasng the cash holdings Of the Clearing House
banks of this city by about sI.339,o0G, ap
pears from Saturdays statement Of actual con-
ditions on Friday night for the average" state
flent shows q gain OF more than $4,000. 600. but
the cash holdings are still so heavy that the
surplus reserve remains not much below the
s20 900 600 mark. and further Withdrawals which
are expected 10 be ordered before summer, are
not likely to impair these holdings 10 an extent
u uhich will produce more than temporary stiffen-
ing OF the rates of money. and viii have the
effect OF lessening the likelihood Of 4 drain Of
gold 10 Europe.
An interesting occurrence Of the week in
line with the tendency of the times in the direc-
ZION of more scrupulous compliance with Inc
av. was the announcement by the First Ma
tional Bank OF the formation OF d $4,000. 900
corporation for the purpose Of acquiring and
holding securities and other properties owned
by that institution The First National has long
been 4 stock market factor, and its statements
10 the Controller of the Currency have shown
very heavy holdings of stocks ard bonds,
amounting according TO the latest such state
Inent TO about s60.U00,0O0. The national banking
las does in terms prohibit i national bank
bal1 mn hay. h.II Il