The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1911-06-04
INFLUENCES THAT MADE FOR RECOVERY
AND DEVELOPMENTS OF THE WEEK
That Checked Tuesdays De-
Market Into Positive Snng-H Financing
lin Amo
IT JOHN GRANT DATER,
,lal Representative the Munsey Public

Gates a condition of SIS per cent as
compared with 81 per cent at this time
last year, upon an average Of $500, 900.
which contrasts with 80, AIS, 900 acres in
1910. These figures indicate a crop in
excess of IA, 100000 bales. OF course, very
many months must elapse before the
cotton crop is assured, but 1t is agree
able to note the highly favorable condi-
lions at the outset, for the cotton crop
of 1911 is certain 10 prove an influence
Of prime Importance on the financial
situation. A crop failure or a serious
shortage, on the present occasion, would
prove very serious matter. The favor
able cotton crop report adds much m
terest to the Government report on
cereals, which is due within week.
AS was pointed out as a possibility a
week ago, in connection with the sale
of new bonds by a Union Pacific sub
sidiary, the success attending that offer
ing reflected Immediately in the invest
ment market and has paved the way to
the sale of other bond issues instead of
notes. The most important offering of
the week was one of $20,OOO,U0 Great
Northern railway first and refunding IA
per cents at 102 Naturally the new
mortgage. which is drawn for 100000. 0OG,
or the largest in the history of Ameri-
can railway financing, suggests the pos
slbility Of considerable financial read
justment among the Hill properties.
diate prospect of Great Northern's
acquisition Of the Northern Pacific's in
terest in the Burlington, the Impression
that such may be the case at some
future date adds to the gayety OF Wall
Street, which has long been denied the
chance of discussing deal and combina-
ton rumOrs.
Slightly Firmer Money.
In addition to the sale of Great
SIG, 100000 Detroit River Tunnel Com
pany AZ per cents, also offered at lo2.
The bond is guaranteed by the Michigan
Central railway, of which the tunnel
company is subsidiary. Both these
issues. like the Oregon Washington
bonds offered last week, sold quickly
upon a basis of about AZ per cent, or
a shade under which seems to deter
mine the rate for new capital for cor
pOrations at the present time. Although
this marks an advance In the cost of
permanent financing by a railway of
about u per cent in recent years. II
is no more than the increased cost of
municipal borrowing IN the same period.
Naturally the heavy corporation borrow
ing financing which has fallen upon the
market recently has resulted in a slight
hardening Of money rates. Call funds
have averaged about Il per cent higher
during the week at from 21z to 22s per
cent, and long term loans have under
gone a similar hardening. with six
months money ruling at 314 to 81 per
cent, and eight and nine months at
3st to per cent. Commercial paper
rates have also hardened, and there are
some other indications that the city has
probably seen its lowest money rates
for the present year. The bank state
ment today naturally reflected the June
disbursements, loans and deposits in
creasing and cash holdings and surplus
reserve diminishing. These changes are
probably of a temporary character. and
with the surplus reserve still standing
at 81, 2f9, $50 above reQuir no
one is concerned over the money mar
ket, despite the slightly firmer tendency
in rates.