New-York tribune., 1908-04-13
THE FINANCIAL MARKETS.
THE ERIE INCIDENT AND Mr. HARRIMANS PART
Continued Ease the Money MarketBuan Improving Slo
The Crop Outlook.
HE ERIE INCIDENT And MR. HA
THE WEEK IN WALL STREET.

standing The approach of the Erie 10 the brink |
OF disaster. the putting out by the management, |
AT almost the last moment, of a plan for taking |
care of the maturing note issue of S5.500,0o0 |
which was physically impossible of successful |
outcome the demonstra ton Of the failure Of thar |
plan and the unexpected entrance the scene !
of Z H. Hartman with proposition which in |
stantly proved the solution of the difficulty
these occurrences. coming in rapid succession. |
constituted the feature of predominant interest |
during the greater part of the last week. as IN |
the preceding week, in the financial markets OF |
this city and 10 a large extent in those of for
eign capitals as we'll. The uncertainty concern |
ing the fate of the Erie had naturally had de- !
pressing influence on the local stock market, but
the clearing up Of the situation, although having !
4 beneficial effect, was followed by no violent |
upturn in prices. the lack of enthusiasm being
due to the distinctly bad impression created by
the manner in which the directors had handled
their problem. 10 the absence Of any explanation
of the reasons for the course pursued by them
and 10 the feeling that the arrangement finally
adopted for taking up the notes. although in
Guiding the providing Of several millions Of new
capital for the of the company, might be
found by and by 10 have been merely the bridg
ing over of q crisis
Mr.. Hartman has long been a factor in the
Erie management. but his action in the present
emergency has made him the dominant figure in
the control OF that property. in the view of the
financial world, the great banking house with
which the control has hitherto been identified
having as far be judged. been willing 20
allow receivership and finally having acquiesced
in the plan proposed by him. His action has
been generally commended. and there is doubt
that it has had an important effect for good in
the way of reassuring foreign investors, who
might have argued from Erie receivership a
series Of other receverships, and who are none
too firmly persuaded of the stability of American
securities. AS far as concerns the American in
vesting public. il is open question whether or
not the abandoning Of the Erie at this juncture
TO a receivership would greatly have impaired
confidence and would have retarded the recov
cry from the panic conditions. In any case a
reorga ization OF the Erie without recourse TO
the courts. is recognized not unlikely 10 come.
Ever since Mr.. Harriman's offer an
nourced there has been interested discussion OF
his motives in making il. The view is not neces-
sarily cynical which fails TO recognize those
motives as essentially altrustic. for, according
Wall Street standards. the doing OF a good
deed Is none the less mertOrious if benefit or
a profit to the doer follows. Accordingly 1t
should not detraCt from the merit of Mr.. Har-
rimans act that the averting of receiVership
for so large and so widely known system as
the Erie is likely TO increase greatly the pros
pect OF success Of the financing which the Union
Pacific, the Illinois Central and the Delaware &
Hudson about 10 undertake: that the Union
Pacific. through stock holdings in New York
Central and Baltimore & Ohio, has indirectly an
important interest in the anthracite coal situa-
ton the status quo Of which might he disturbed
if the Erie to be operated under the direc-
tion of receivers, and that the Erie, has often
been pointed out, may be used some day as the
Eastern link of the Hartman transcontinental
system.
The stock market week closed with moderate net
gains for a majority Of the issues in which
transactions had, the chief Improvement
being in the local traction group, with Third
Avenue. their leader. scoring total advance
of 10 points in the six days and net gain Of
1612 The advances in this group were not
companied by any definite news developments
and appeared to be based mainly upon the likeli-
hood Of large savings 10 be effected through cut
ting down Of the transfer privilege. which had
become a very heavy source of expense, and the
! increasing probability Of partial dissolution of
the transportation monopoly the extent of
/ making the Metropolitan and the Third Avenue
once more independently operative properties
! The recent activity and advance in the copper
metal market have given place to renewed de-
! preston and declining prices. reflected in the
/ stock market during the week in the course OF
! Amalganated copper; and it is hardly TO be
| expected that extensive and sustained de-
mand for copper viii develop until the general
| situation shall have made further progress
/ toward Improvement and financing on d heavy
scale by corporations for betterInents and
! tensions and new enterprises shall again become
! possible.
That time has not yet arrived, although money
/ is constantly png up in the banks and the
! money market is constantly showing greater
ease. Call money may be had in the New York
/ market at from ll2 TO per cent, the latter
! figure not having been exceeded for weeks: and
/ time funds obtainable at correspondingly
! low rates, thirty-day money being offered al 2@4
and 2ic per cent, with little response. Cash
/ is pouring into this centre in such a heavy vol
! ume that the surplus reserve OF the associated
! banks is now in excess of S43 100000 Profit
! able employment cannot be found for it home
owing 10 the stagnation Of business; and il is
sent here in the hope that some return may be
obtained from il at the financial centre of the
country. expectation which to a great extent
fails Of realization The mercantile agencies re
port progress in the direction Of better times for
business, but very slow progress the improve
nent noted during the week being in large
measure due TO the approach of Easter. The
record Of bank clearings continues to show seri-
Gus curtailment of business and industrial ac-
tivity. total clearings for the week having been
302 per cent less than for the corresponding
period d year ago.
The size Of the crops this year viii be factor
Of the highest importance in determining the
length OF the business depression, and strong
encouragement is given in the first government
report Of tho season winter wheat. which put
the condition as of April ! s15 against S9.9
d year ago the indication being for harvest OF
493 900 900 bushels practically high record, and
even the revised method Of making the estimate
showing d probable crop fully up the average.
What the next few months may bring forth in
the way Of adverse crop conditions no one can
say, but The beginning made is highly favor
able and the present outlook is for harvests Of
satisfactory sic, which viii add 10 the wealth
and therefore to the purchasing power Of the
great agricultural communities and insure "A
large volume Of profitable traffic for many Of the
pagn is not vet under way. and account must
be taken Of is uncertainties and of the unset