Indianapolis Journal, Volume 54, Number 73, Indianapolis, Marion County, 13 March 1904 — Page 18

TJTE INDIANAPOLIS JOURNAL, SUNDAY, MAVCH 13, 11104. PART Timp and Mnnpv Flu LOCAL STOCKS AND BONDS THE WEEK IN WALL STREET REPORT OF U.S. STEEL CO. STOCKS SHOW WEAKNESS PER ON TIME DEPOSITS CENT. S PKR CENT. ON SAVINGS ACCOUNTS fZTJ aaal IfciaT asT 17 f fa T TWt:T :. Mm rlcet aar a a a a a WSBSW I'lVfl IVJ BJ WITH ALL OF US. MCI BLO( K OK COMfJnlKBia1 .s raw vi arocat aoui r i r i : 1 1 1 . Ill VIIIOI h l Til K ST(M K IKKKT NET E IRSINGS LA SI VEAR PRESSIRE V (.IM THE KW (il(h Tit A4 Til) IsM i. t VM M I MIIIOK EM. iMoi Mi l) TO aiOO,lTl,lB2. tiiaatd in w Telephone Mark nnd Sales of atSrtj aaSaW nt 'M. with Bights, Keatnre of the Week. Impending Decision in Northern Securities ( ne I at HI the Most Depressing Influence. I ndivided Profits in Ifjtt U ere flS, 77.. !-, us I nniinreil with eo, (;im in I INKS. I'cn n 1 11 11 in Una Finally Broken lielow 112. Touching; 111 1-2 Yesterdnv The ( lose Whs Firm.

Money to Loan Z7STZ SECURITY TRUST COMPANY, FnriJ.T.TS

Call and get one of our Banks before your money takes wing unto itself. 21 00 starts an account and compound Interest makes it grow.

THE CENTRAL TRUST CO. I50-154 East Marhet St. J it A VM I OK SAL 1 1 $5,000 New Telephone Co. Stock. $5,000 Union Traction of Indiana preferred stock. 0,000 Indianapolis Street Railway A. W. THOMSON Stockt Bond and drain Broker 4 and 5 Ingalls Blook Both I hnne: 34 P0RTERF1ELD & CO. Cankers and Commission Brokers CHICAGO, ILL. We buy and sell broken lots: carry Grain and Stocks on reasonable margins. Write for our Daily Market Letter and keep posted. Indianapolis Office, 207-8 Stevenson Bldg. Old Phone Main 884. New Phone 1884 YOU KNOW what interest you get, and you will be certain to get it 5i Pr Cent. Minnesota farm mortgages. We have dealt tn them for thirty years. THOS. C. DAY (B. CO. Law Building I Have for Sale Indianapolis St Railway Guaranteed Stock. NEWTON TODD TSSSS"" L. W. LOUIS fFstabtlshed 1887. Grain, Provisions, Stocks, Bonds and Cotton Bought and Sold on Commission Wat Pearl St. . . . Indianapolis Chamber of Commerce . Cincinnati SAFE DEPOSITS. S. A. FLETCHER & CO.'S S;i.t Deposit v.Miit UO-,'!4 East Washington Street. Absolute safety against nie and burglar. Posafe keeping of Money. Bonds. Wills. Deeds. Abstracts. Silver r'late. Jewels and valuable Trunks. Packages, etc. Contains 2.100 boxes. Rent SO to f45 Per Year. WILLIAM A. Ill (.HKS Mannger Therf: are no safer investments for your money than the farm and city mortgages that we have for sale. In 21 years we have sold over eighteen million dollars of these mortgages and have never lost a dollar of Interest or principal and have never foreclosed a mortgage since we have been in business. Phones. Now 1824; Old black 4126. C. M. WILLIAMS A CO. Bankers. No. 10 East Market St.. Indianapolis We allow three per cent, on deposits. GENERAL FINANCIAL NEWS. "The Panama canal payments are not likely to otNturb the financia1 situation in the least." says W. U. Nicholas, the Journal's Wall -street correspondent. on the contrary. It Is possible that there may be such a delay In paying the fto.OnO.OOO to the owners of the old canal property that the banks will have the use of the money for months. The epidemic of lawsuits which has b.oken out In France between the various claimants for the share which Is to go to that coun-t-v is mäkln the American interest very uneasy. According to common belief, at least half the Baonsiy will remain on this side. No definite fc.fot matlon is obtainable an to the identity of the Individual composing the American Panama canal contingent, hut it is unquestionably made up of lm;s'rtant people whose influence has be. n potent in Washington as well as in Paris during Kg progress of legislation and treaty discussion. Some day the facts inay be known, and when they are there will be a sensation which will Joy the soul of Col. Heni V:tterson and other who have an inkling of the truth but lack definite knowledge of the facts to support their tragus statements." That Secretary Shaw is meditating the recall from the banks of a considerable percentage of United States deposits remaining after the Panaaaa payments have been completed, as ha been Intimated In the monthly circular of the National City Bank, and in later Washington dispatches Is confirmed by his ad r-ss to the New Jersey Bankers last week. In that address the secretary took the ground that at such a time as fnaS the banks ought to be contracting their Circulation Instead of expanding it. It appears tram this that the secretary regards the large amount of public funds now on deposit in national banks as in some respects a tempta Hon to make injudicious loans. The reason which Induced him and his predecessors to innrr se United States deposits to the credit of the treasurer of the I'nlted States from Sx.)00.0ti0 at the end of MS. t. nearly twice that amount, or Jl.eno.(MJ in 1301. have ceased to exist Th. surplus for the current fiscal year to date is only lavtaXOCO, or about one-sixth of what It was at tals time a year ago. The available cash balance In the treasury, less deposits in banks. Is now only $.- - This will h- reduced t i anVtnVflri or less within two months by the- Panama payments, of which $3t.O00,000 are to he taken from the treasury ana $30.ui).XO from the banks Wall street Journal. Oll IM( sm. H REFIXIXG. The recent advance in American Sugar ReflnInC Hock wss accompanied by reports that the comiary is now earning at the rate of $1.000.000 a month applicable to dividends The buying Was largely by interes which for some months nave maintained bullish views on the stock without expressing any definite reasons for the faith that was in them An average profit of $1.000.000 per month or $12,000,000 a year would leave $3.150.000 available ax distribution on the common stork after providing f"t the 7 per rent, on the preferred This Would be equal to 2i - r c-nt on the common stork sn estimate whlrh Is considered not unreasonable as c..ering K.th the sugar and coffee operations of the company The nt.mler f new refineries projected by awtstde In t rast a naturally raises the question SA to whether the buslri-- r the big; company may not he ndveisely affected to an utsai whl( h Bläht render if in. prudent to Increase distrttuUoa to tocanoi.i creasing "inper tendency to tret aepert f It whir tloa In trad clr to any ai gui;. trust agitators, local field there while havlntc to ni.et inin There Is, however, a this question lightly The now reoeivf moat considers - is the answer hlrh It gives hich might he ranted by anti- " with competitors In the uld be no allegations of a monopoly. auch a eont-nt!.n has often been mads In the past since it Is though! in many c'rrles that an understanding ei.ats between the American Ctupany and the Ar buckles. Wail-strett Journal.

Interest ir the local securities market yesterday centered In the advance In Consumers" Oas Trust stock. The stock sdvar.ced another 100 points on Judge Anderson's decision that the Federal Court has Jurisdiction in the case, and a large block was sold at a price, near 1100. There were bids on the curb of 1100, and the stock was offered at 200". The discount of the bid under the offering prlc show b the strength of the stock yesterday. The block sold yesterday was one of the largest transfers In this Issue lately, and It went at the highest price paid for the stock for several months. Although the stock seems very strong Just now, brokers regard it as one of the nrost speculative Isaues In the local market, and one broker said it would not be at all surprising to see the stock lower the coming week. On the other hand, he said, the advance, which began Friday, may continue, and the issue may be carried nearly as high again as it was last fall. Since Consumers las was at 1500 bid on the Exchange last fall It hr.s sold down as low as M0. fntll a few weeks ago the bid was unchanged at 500 for weeks. A short time ago one of the Washington-street houses put the bid to 0. where It was maintained for a week or two. Then It went back to IHt and Friday advanced to 1000. Only two houses handle Consumers' Oas Trust stock. The broker who Is referred to above as saying that the movement of the stock next week Is very uncertain has been dealing In this stock for sixteen years. The feature of the market the first part of the week was the advance in New Telephone stock to 90. and sales of eighty shares, in small blocks, at this figure. The stock opened Monday strong and advanced from 87 to 90 on the bid. without a sale. The following day It went one point higher. On Wednesday, with the subscription rights in the Indianapolis Telephone Company on. sixty shares were sold on the call at $0, and the following day twenty shares more were sold at the same figure. The demand was a little slow at this figure Friday and the bid declined point, to without any sales. 4 The strength of New Telephone is shown In another way besides the sales of nearly $10.000 worth of the stock at 'JO. A premium Of 3 per share Is hid .for. the. subscription rights of the stock. A holder of New Telephone stock Is in a position to make a 9 per cent, investment in the Indianapolis Telephone Company. For 500 a holder of ten shares of New Telephone stock Is entitled to take ten shares of common stock in the Indianapolis Telephone Company, fl.000 par value, and with this he will be given a bonus of 2 shares, $250 par value, of preferred stock in tho newly-organlied company. The common stock will pay 3 per cent., and his dividends upon that will be $30 a year. On the preferred stock he will receive 6 per cent, annually, or $15 on his Z shares. Thus on his $500 Investment In the new company he will receive dividends of & per cent, a year. By the extensions to be made to the property of the New Telephone Company by the Indianapolis Telephone Company the earning capacity of the company will be Increased to nearly $280.000 a year, or nearly 20 per cent, gross on the $1,200.000 capitalization. The stock is on a 6 per cent, dividend basis and pays about 6 per cent, at the prices at which it has sold this week. The Indianapolis Telephone Company will guarantee the dividend of 6 per cent, upon the New Telephone stock, when It leases the property. f e The gross earnings capacity of the Indianapolis Street-railway Company Is about $1.800.000 a year, which is about 12 per cent, gross upon Its $15,000,000 of capitalization. Street-railway stock this week has sold at 87 and 874, one sale being reported as high as 88. Viewed from a purely investment standpoint. New Telephone stock is surely as good an Investment as Street-railway. The New Telephone Company has not been established as lojig as the Street-railway Company, of course, but tt has already demonstrated Its earning capacity. Viewed in comparison with Street-railway at Its present price the New Telephon- st-ock surely ought to sell around SS. or better, with the rights off. e Takln? the week as a whole, the local market has been about as active the past week as

during the few weeks preceding. The week's sales of stock aggregate 495 shares. Hoods have h.-en a slow sale this week, the week's transfers Off bonds being only $4.000, par value 11,000 New Telephone second fives and $3,000 Street-railway fours. Qnotationa. Closing Bid. Ask. 102 STOCKS Abattoir pfd American Central Life Ins. Co 80 American National Bank Ill Atlas Kngine Works pfd 104 Belt Railroad common Ill Belt Railroad pfd 120 Brown-Ketrham Iron Works pfd 104 Capital National Bank Central Trust Company 130 Climax Coffee A Baking Pow. Ob Columbia National Bank Ill Consumers' Oas Trust Co.. 1000 Palawan A Madison Co. Telephone F''lernl I'nion Surety 'mpany Home Brewing Company 117 Indiana Hotel Company pfd 40 Indiana National Bank 215 Indiana Title Ouar. and Loan Co 60 Indiana Trust Company 161 Indiana I'n'on Traction Co 12 Ind'pTs A Martinsville K T Co Indianapolis Fire Insurance Co 143 Indianapolis Gas Company nd'p'l'l Kastern Railway Co Indianapolis A Eastern pfd 90 Indianapolis- Street Bail way M Ind'pTs Traction and Terminal S5 I.aw Building 79 Laycock. T B . Mfg Co. pfd Marlon Trust Company 220 Merchants' National Bank 196 Midland Portland Cement common Midland Portland Cement pfd New Telephone jjjt New Tel.. subscription rights ..eseg New Telephone, long distance People's Deposit Rank no Polk. J T . Company pfd Rauh Fertilizer pfd 107 1J.:.' 107 i 119 si" 115 47" 93 23Ö 166 17 50 in 7.r. 50 9R B 3S S6 :.'4 41" 7715. 9Jr 71.. 61 m 1024 ni :; 225 107 105 Security Trust Company Pnlon National Bank 1'nton Traction common. I'nion Traction pfd 100 103 ?2 734 I'nion Trust Company Van t'amp Hardware Co. pfd Wasson pfd BONDS .100 93 .106 ! 95' Broad Ripple fives Citizens' Street-rallmad fives Delaware A Madison Co Tel fives H ome Heating A Lighting Co. fives Indiana Hoel sixes Indiana I'nion Traction fives Ind'pTs. Colu'h's ft Southern fives Indianapolis & Eastern Ind'p Ts A Greenfield Railroad fives I rvltananolts (las I'nnninnv .It... tani 90 100 102H SO IOÖ4 HI lo.-.U S9 874 V 1'13 I'd m vT-, 92 84 90 974 quota1044 s IW ' 100 99 V 10?4 90 II ! Ind'pTs A Martinsville K T fives! insinuations .orinern nves Ind'pTs Street-ry- bonds (fours)...! Indianapolis Water Comimny fives.. Kokomo Railway A Light Co fives! Merchants' Heat A Light (V fives... Midland Portland Cement fives New Telephone first fives ,, N'.-w Telephone second fives New Telephone. long distance, fives I nlon Traction of Indiana fives With arcrued interest. No bid or ask tion. Dollars. Sainus Hunk Investments. t'nlted States Investor. The New York superintendent of banks touched In his report upon a subject of more than ordinary Importance He recommends that haste should be made slowly in extending the list of savings bank investments and only upon lines that the best Judgment of th" officers of thosv Institutions can approve. The need for the utmost care In investing savings banks funds should he self-evident Representing ss they do in most part the -little all" of the humbler classes, too stringent safeguards cannot be provided. Our savlnzs hanks have Justly attained to the confidence of the thrifty toiler and anything which would shake faith In the security of his savings wou'd discourage accumulation and thus react upon the welfare of the entire nation While, an the superintendent Temarks. the !ee;a!lxing off railroad bonds as savings bank Investments may thus far have proven wise, the law as It at present stands offers a loophole through which s uittw-s of a apTulsttve nature mav creep in Seven years ago the New York savings banks he!.l $111. "100. 000 of I'nlted States consols where t.. day they hold only $l.non.uno. in the meantime their hoi. lings of railroad bonds have mounted rapidly to $177,o00.') N-w no one will for a moment suggest that th- banks should confine themselves to United States bonds, for. though absolutely safe, they return too little upon the Investment To pav 34 per cent to depositors, the savings banks cannot invest largely tn bunds netting less than 2 per

Special to the Indianapolis Journal. NEW YORK, March U. The stock market deadlock continues. A majority of the traders on the Exchange and in the street seem to be determined to await a decision In the Northern Securitiec case bfore resuming active operations or taking spies The weekly recurring disappointments SafSS the nonaction of the Supreme Court tn this case hae wrought the street into a state of nervous excitement. The street had the strongest kind of a tip that the Supreme Court was to act lat Monday. Not only that, but statement were made with great posittveness that the derision would be adverse and that it would uphoi 1 the findings of the l"er cuuit in every essential point, with a single exception, and that relating to a minor detail involving a matter of interest only to the State of Minnesota. It is not improbable that the decision was withheld by the Supreme Court cn account of the widespread circulation of advance information as to the purport of the document. It would not be the first time this has been done. In one conspicuous instance, the Laclede Oas Company's case of St. Louis, a decision was kept back for a year, and when handed down It was directly contrary to the original adanced tip. During the interval the court seems to have reversed Itself. On other occasions where interests have taken the trouble to acquire advance knowledge of a decision and let the information be generally known, decisions have bven hung up for months. The Supreme Court is exceedingly touchy on the matter of "leaks." Betrayal of Its secrets is. in the minds of the august Justices, an unpardonable offence. Not only that, but It would constitute contempt of court, and any jerson or persons thus engaged would ' make themselves liable to severe punDhme-nt. There could be no appeal from the decrees of the Supreme Court In a matter of this kind, a fact well known to those who obtain and sell tips as to what the court Is going to do. Thus far they have escaped discipline, but one of these days an awful example will be made, which will discourage enterprise in tlmt frerd: The statement has been made that there Is no instance on record of an authenticated leak by which the public gained advance information of Supreme Court decisions. This Is a mistake. The full text of the famous Ike Front case of Chicago was printed In the Chicago Tribune some time b. fore it was handed down. This case settled for all time the rights of th Stute of Illinois, the city of Chicago and the IllinolK Central Railroad to land and harbor rights of very great valu. The advance publication of the decision created tremendous excitement and was a g-eat scandal. Time and again the tips which have bewn hawked about New York and Washington have proved remarkably accurate. Naturally more or less guesswork is indulged in by the tipsters, but some of them appear to be strangoly inspired along correct lines. There is one thing, however, the tipsters can never be sure about sr.d that Is the date upon which decisions are to Le rendered. The practice of the Justices is to meet Saturday afternoons and decide what decisions will be announced the loilowing Monday Then at 11 :3o a. m on Monday another consultation is held, and It very often happens that on motion or suggestion of one or more of the Justices a decision scheduled for reading is pulled down for some cause It may be that a JuMice is not satisfied with the exact phraseology employed in some sentence or paragraph, or he may want to give the decision another ; rusa! in its entirety. Any one of a thousand reasons, or no reason at all, suffices for this action. Of that there can be no advance warnlnx. and consequently, while the guesser may have the tenor of the decisions right, there will be a disappointment over the unforeseen delay. Some such accident may have occurred in the Northern Securities cae. It mav be rendered next Monday or the Monday following, or it may be hung up for a year. Th- latter contingency, however, Is very Improbable. The street again hears that Mr. "Jim" Hill and his associates have a plan fully matured for continuing the Northern Securities holding company under a new guise in the event of an adverse decision. The device sunnosed to he hit

upon Is that of a voting trust similar In many tespects to that which has been In operation in Erie and Southern Railway for several years. Presumably such a voting trust would be endowed with authority to distribute the stocks and bonds now held by the Northern Securities Company Just how this can be done is not now clear. The Job will be full of complications and embarrassments, and it will affect not only the Great Northern. Northern Pacific and Rurllngton. but the I'nion Pacific as well. The last-named corporation is a large holder of t-he underlying securities which enter into the Hill combination, and will be Involved to a very considerable extent In the distribution and its consequences An adverse rlnd'ng by the Supreme Court would be of far-reaching importance bevond the question of a doubt. It would not affect combinations of noncompeting railroads, hut It might plar hob with existing arrangements bv which Pensylvania controls Baltimore & Ohio Chesapeake a Ohio. Norfolk A Western and Reading, all f which are more or less competitive. It might also affect the combination by which ouinern facirtc is controlled bv Union Pacific The existing control off Louisville A Nashville might also be broken Into. Four out of five of the mergers of recent years would not come under the ban, as the properties consolidated are not in restraint of trade, but are strictly In the nature of railroad extension and exianslon. This Is conspicuously the case with the Rock Island, which is a combination of a large number of lines grldironlng a vast area, but in no Instance taking In comjietltlvf: -oads. 4. Financiers and leaders In the stock market are extremely sensitive these days on gossip touching on the methods and campaigns of the Standard OH crowd. Miss Anna Tarbell. In her Inside history of the Standard Oil Company, made it plain that from almost the first It was Mr. John D. Rockefeller's habit to maintain a close egpionsge on competitors and rivals in the oil business. He was openly accused of employing a corps of spies to keep him informed of everything that was done by his opjioncnts. There is sn uneasy feeling in the street that these same methods are being employed in the securities field, now, that the Standard OH has undertaken to dominate there. Through its ownership and Interest in a large number of hanks, trust companies and insurance companies It would be jvossible for It to obtain intimate knowledge of the oerations and resources of thousands of men who buy and sell stocks and bonds. There is no proof that this is being done, but it would be in direct line with what was done for many years in developing the Standard Oil monopoly. With larger and netter facilities for acquiring the fame kind of Information as to securities it is not a very wild flight of Imagination to conceive that the practice is being applied wherever such Information might be desire l. Speculators and traders have a sense ,,f uneasiness and insecurity In consequence of the growing fear of Standard Oil espionage of the private affairs of those who have relations with financial Institutions under Rockefeller control This is a curious condition of things and intensifies the growing terror with which the Rockefeller party has inspired the nnanclal district People are asking therr.sehes where it Is going to end and when the Standard Oil crowd will be satisfied and cease its aggressions and be content to let others alone. Throughout his long career the founder of Standard Oil has proceeded on the theory that business is war and that annihilation of competition and competitors whs Justifiable and an Incidental means to success We have the authority of the late W. T Sherman that "War is hell." and It Is the OOarletloa of men who have tried unsuccessfully to oppose ths plans of Mr. Rockefeller that the business methods of the great financier and merchant are "hell." 4-4- I The Standard oil appears to have at last invaded the Eastern newspaper IsM, The control of an Important financial and commercial New York newspaper has been secured, and Its columns are daily niled with violent personal abuse of Augustus Heinze. who has for vears antagonised and embarrassed the operations of Amalgamated Copper in Montana and elsewhere There Is small sympathy for Mr. Heinze but considerable speculation Is being Indulged in as to how far this socles of newspaper buccaneering may go. If Heinze is to be attacke-l through the columns of a Standard I Ml newspaper because he opposes Standard Oil plans, why not others? 4Are the kings of high finance and the captains of Industry going back Into the old ways where the strong arm Is the only test of superiority; where brute force rules? The situation has liecome at least Interesting, and the operations of the Standard Oil crowd In the newspaper field in the East is being watched with solicitude. 4The cr.p outlook Is already a matter of concern to those who Invest or speculate In stocks. Conditions In the Southwest and West, where the surplus winter wheat Is grown, have not been favorable, and predictions are already heard that the crop of 1904 will be a short one. In the Noithweet the gp und is frozen to an unusual depth, and Indications point to a late start for ppr-.ng wheat It is hardly wise to destroy or cut down the spring wheat crop before lha seed Is In the ground, but it can be said without doing violence to common sense that the outlook for early agricultural endeavor is not as good as it might be. Aivlces from th South and Southwest are almost unanimous to the effect that there is going to be a very large Increase In the cotton area. In some parts of the cotton belt estimates of the probable increase range from 25 to 35 per cent., TvJLas appal ntly tak;:ig It.- lead W. G. NICHOLAS.

NEW YORK. March 12 The second annual report of the United States Steel Corporation, dated March 1, was issued to-day. The statement is a voluminous one. dealing with the income accounts f r the year, comparative income, the preferred stock conversion plan, financial obligations, capital expenditures and a detailed statement of production. It also includes the certificate of the chartered accountant, showing assets and liabilities, together with a condensed general profit and loss account. Net earnings for the year, after deducting expenditures for maintenance and Interest on bonds and fixed charges of subsidiary comanies, were $109,171.152. compared with $133.3aS,763 in 1902. The balance of net earnings for 1902 was $3,675,7M. as against $108.534,374 in 1902. There was charged off last year for depreciation in Inventory valuation and for the adjustment of sundry accounts $5.378.837. The previous year nothing was charged off to this account. Dividends on the preferred ttock in ll3 amounted to jj;. 4o4. l.S. as against iao,7i),l77 in 19JJ. Undivided profits for 19C3 were $12.304,916. as afc-air.st W.WI.fK. Payments for account of common dividends in 19C3 wero $12.77.562. compared with $2l'.332,690 In at - Reports show the balance of undivided surplus for 1H3 of $66,096,618. Expenditures mads by all properties during the year for maintenance, renewals and extraordinary replacements amounted to $34.785.191, all of which was charged to current operations. It is declared that the physical condition of the properties has been not only fully maintained, but greatly improved and strengthened by these extensive outlays. PREFERRED STOCK CONVERSION. Regarding the preferred stock conversion plan the report says: "Up to Dec. 31, 1903, there had been issued and were outstanding I'nited States Steel Corporation ten fclxty-year 5 per cent, sinking-fund gold bonds, dated April 1. 1903. for the aggregate principal sum of nit.tWt.iSt These bonds were issued In payment for l,5o0,ooo shares of preferred stock at par. as well as In consideration of $7, lt.,100 cash received from J. P. Morgan & Co. for a syndicate, being part of liO.Ooo.yvo cash receivable under the contract of April 1, i9o2, approved by the stockholders In special meeting and thereafter sustained by the courts. Since Jan. L 1904. and up to the date of the writing of this report there have been received from J. P. Morgan A Co. t&tSLtOQ additional on account of the aggregate of $20,000,000 cash receivable as above, and there have been issued additional bonds of a par value of $5,097,500, making at this date (March 1. 1904) a total Issue of bonds for the aggregate principal sum of $158.000,000. Thus the corporation has received from J. P. Morgan A Co. for the syndicate $11.000.000 cash, and has delivered $8,oOO.oOO In bonds, leaving $9,000,000 cash to be received and $12,000,000 bonds to be delivered. "The corporation has the right at its option at any time to call. for the remaining $9.000,000 cash, but in order to avoid the unnecessary burden of interest upon bonds issued for money not immediately needed arrangements have been made with J. P. Morgan A Co. whereby, until otherwise provided, the corporation will not be required to call the remaining $9.000.000 cash, or to deltver bonds therefor, except when and as the cash shall be needed by the corporation. Interest upon these bonds begins to run only as and when the corporation receives cash for them. Under Article 3 of the contract Morgan & Co., representing the syndicate, have received, or will receive, as compensation 4 per cent, upon the par of 3170,000.000 bonds, for which there have been sold to and received by the corporation LaaxaN shares of preferred stock at par. besides the $20.000.000 In cash received or receivable, as above stated." COMMENT OF GARY AND COREY. In the way of general comment Chairman E. II. Gary and President W. E. Corey say: "During the year the general trade conditions materially changed, and the business of the subsidiary tompanifs. together with the business of all others, suffered as a result of the falling off in orders. The effect In profits has been shown accurately from time to time In the published statements. So soon as It became evident to the directors that there was likely to be a large diminution in the net profits to be realized by way of dividends from subsidiary companies It was deemed wise and prudent to reduce the dividend on the common sto. k of this corporation, and later, for the same reason, to suspend payment of dividend on this stock. "In the determination of these questions the directors gave careful consideration to all the facts and circumstances bearing on the subject, and due regard to the relative right and claims of all who are interested in the continuous and permanent success of the corporation and the advancement of its baataaas. "On Dec. 31. 1903. the tonnage of unfilled orders on the books was ' .15. 1231 tons of all kinds o? manufactured products in comparison with the tonnage of 5.3L.253 at corresponding dates In the previous year. "Occasionally publications are made concerning the affairs or earnings or results of the business of the corporation, which are stated to be ba?ed on Information derived from an 'ofhinl' or 'director or 'one Identified with the eotnoratlon' or 'from inside sources.' Obviously It would be inexpedient to undertake to contradict or explain statements of this kind, even though inaccurate and unreliable. From time to time Information relating to the affairs of the corporation

is given out by the officials for publication, but it is the rule in such case to accompany the statement with the name or office of the official making the statement, and no publication should be considered authoritative unless so identified." NEW YORK BANKS MAKE A NOMINAL SHOWING. Leuns Sliow Decrease of More Than flLOOO.OOO Statement Had No Fffeet I pon the Stock Mnrket. NEW YORK. March 12. The statement of averages of the clearing-house banks of this city for the week shows: Loans $W7.399.000 Dec. $2.519.40) 1 ,.,.. ..its 1. .'". -'. Lee 3.:i24.!s" Circulation 37.962. 600 Dec. LM,SM Legal tenders 70. 11. 200 Dec. 780,200 Specie 2rj.I35.10i) Dec. 57..: Rassrve ZSS.aSÖOi Dec. 837.500 Reserve required 25M17.235 Dec. 831.225 Surplus 2, 37. 075 Dec. 6. 25 Ex. U. deposit-;.... 3.2t,825 Inc.. D3.175 ANALYSIS OF STATEMENT. The Financier says: "The striking feature of the official statement of the New York associated banks this week Is the decrease in all the principal items and the very slight change in the surplus reserve. "Contrary to expectation, the loans were decreased $2,513.100. This seems to Indicate that there ha.s been no expansion of loans as the result of syndicate or eoraorataoa borrowing, as had betn locked for. The falling off In loans is iherefore attributable to the light demands for Stock Exchange- purposes, owing to the small volume of speculative operations. "The cash decreased by 1817, SOI, which sum very closely corresponded with the amount of I73e,5t9 loss which was estimated from the traceable movements of money during the week. "Deposits decreased $3.324. 00. or only $32.000 less than the sum of the reductlcn in loans and of the loss of cash. The statement, therefore, shows a remarkably good balance. The- required reserve is reduced $831.225. as the result of the decreased deposits, and, deducting this sum from the loss of cash, left the extraordinarily small O-erease of $,27. in surplus rese: vis to ?2.37,075. Computed on the basis of deposits less those of $3.535.(w0 public funds, th" surplus Is $39,S2o,825. "The item of government deposits Incisasfd i3:7.S"" ilnrini; the u.-k. pro ably representing accumulations through transfers to this city from interior depositories. The Increase in such deposits since Feb. has been It, Ml, lit. "Ciiculation was reduced last wek by $1.2,900, making $6.r2,SMt sin-e Jan. '2. The almost stagnant condition of stock speculation is clearly reflected in thi small dally average of bank clearings, this Oeing only $160.000.000. or $10,000.000 less than in the previous statement. The clearings on Saturday resulting from Friday's business uere $154. 771. 534, or much below the daily average. "The cash reserve of the banks probably will be augmented next week ly the transfer hith.-r of K.'" . 1 ". the proceeds nf fj.cM'.o.. f Japanese yen. which Is expected to arrive at San Francisco during the week. Comparisons of chants in loans show that four of the larger hanks decreased this itm by $3.4O0,mi net Comparisons of chanses In cash indicate a gain of these banks of $l.S0,.).0o0 net." II Mv I UNSOLID I IOY. Two well known banks and two well known trust companies are now taking steps to consolidate, thus creating two large financial institutions in place of four that now exist. These Institutions are the Continental Trust Company and the New York Security and Trust Company and the Leather Manufacturers' Bank and the Mechanics' Hank The union of these two trust companies and of these two banks does not excite the same amount of public interest that would have attended their action If It had taken place several years ago. For banking consolidation has become a somewhat familiar spertarle. not only In New York, but In other large cities of the country The concentration of lianking power which was one of the most remarkable features of the recent great boom In this count! y. .-. mtinues. notwithstanding that the period of expansion has leen checked. Immense as has been this concentration, few even now appterlate the extent to which It has been carried. Twelve years ago the N . Y u k Clearing House contained sixty-four banks, having a capital of $ft.sT:'. 7' Two years ago the number of banks had decreased to flftv-nlne. whose capital was I? ? v an Increase of $TS. -000.000. In the two years since 19o2 there hss been a further derrease In the number of banks to fifty-five, while their capital has increased to $115,57:, 700. Wall-street Journal.

itsa.Too 212,1 hi 2S.710.O46 :t 4. 1 .-. 4 NKW Y RK. March 12 -The stock market developed some activity to-day and a rather positive tone of weakness. The weakness was largely sympathetic with the pressure upon Inllvldual stocks, especially Metropolitan Street-railway and Metropolitan Securities. The liquidation in these two stocks cae M-r.s of urgency and cost the former 4 point3 and the latter 8 points The selling was unexplained by any news renn rding the property and wss thought likely to be dut to settlement of one or two estates largely intereste.l In the property. The authority cf the motive of the selling gave it a sinister effect. Pennsylvania was also freely pressed for sale and broke through the support which has been in evidence about 112. The price touched lllVi. which it, only ubout the low point since the last stock Issue started Its long decline. The selling of Delaware & Hudson was supposed to provide funds for subscription to the now stock offered. The market hardened on short covering in spite of the continued weakness of the two Metropolitan stocks, and the closing was Arm. United States Steel was rather conspicuous in the recovery. The decrease In loans shown by the bank statement was contrary to expectations. The bank statement was of little Influence, however, as the present condition of the money market gies little occasion for solicitude. The steadiness of Northern Securities on the curb had a dissuasive influence cn traders, who sold stocks yesterday to disc unt a possible decision in the Supreme Court on Monday. Total sales ot bonds, par value. $145,000. RKWEW OF THE WEEK. It is a far cry from the 3.202.100 shares of stock soil on the New York Exchange on April 30. IDOL to the 73.800 shares sold on Thursday of the past week. It Is a striking showing of the vicissitudes In the world of speculation and might serve by the rule of three to measure the conditions in Stock Exchange circles then and now. The market is absolutely unresponsive to news developments, whether favorable or unfavorable, an 1 lies inert to the despair of all who look to buiness in stocks and bonds for their profits. At the full commission of 4 of - per cent, on orders allowed by the rules of the Stock Exchange. Thursday's sales of 73.000 shares would yield about $1.825. allowing the commission both to the buyer and seller. The membership of the Exchange numbers 1.100. But the meager details are largely made up of dealings amongst themselves or of orders given by one member to another on which the commission is less, ranging down to $2 on 100 shares of stock. The gloom which pervades the circles In whose hands lie the conduct of the machinery of the market is then appreciable. Tnree years ago a suggestion of the possibility of the purchase of a railroad system by another was sufficient to throw the market Into a frenzy. A GLANCE AT PAST HAPPENINGS. At the period when the Burlington purchase was working out. a mere surmise that the Cnlcn Pacific was to be Included In the "community of interest" induced transactions In 662.800 shares of Cnion Pacific in one day. April 14, 1801. Even aa late as April 15. 1902, the rumor that Louisville & Nashville was pasting to the control of Southern Railway caused transactions in 8".4.5c0 shares of Southern Railway alone cn that day. There was scarcely a railroad stock on the list but what was regarded as available for absorption by one of the great systems, aid no aatl mates of the price to be paid was regarded as too extravagant. The fact that the payment was to be- made In new securities detracted not at all from the Importance attached to the transaction, ss the Insatiable demand for securities in tne market could be relied on to convert them Into cash. The United States Steel Corporation was confidently regarded ns an assurance of the future Stability in that trade by regulating the production and guarding apalnst the violent fluctuations In prices which had formerly dislocated the ini'usiry at periodical Intervals. Operators In Wall street looked forward to the early assimilation of all the great railroad syttems of the IN WH 1 1 f in one "community of Inlei it," vhich woul I do away with destructive competition, while the various Industries were 1 to no consoiPinted under centralized control, . which would insure their stability and attract the confident nvestment of the savings of all grades of employes of the peaceful profits of enterprise. SUBSTANTIAL GROUND FOR HESITATION From the standpoint of cold reflection and experience the excessive speculative exaltation of that time seems a sufficient warning In Itself for the violent revulsion, which was to follow, in accordance with the history of all similar movements. The revulsion of sentiment on the part of the outside world had been accentuated by the revelations of the unscrupulous methods emplo -d In the formation of some of the corporations whose shares were offered to the public and the flagrant manipulation by which the flotation was furthered. The assumption that the legal obstacles opposed to the process of combination were the direct causes of the breaking up of the carnival of speculation sharens the influences attributed to the Northern Securities decision, which is awaited with a feverish anxiety from week to week and almost from day to day. The supposition that the stock market will promptly And Its bearings when that decision becomes known, however, takes small account of the plentiful signs of industrial and commercial reactions In all quarters The declining tendency of railroad earnings and traffic and of bank clearings, the accumulation of idle reserves in bank centers, tho obscure outcome of the coming year's crop, the doubt over the supply of cotton to be finally disclosed by the present year's crop, the sharp drop in the value of the country's exports as a consequence of the seculative level of prices of commodities, the problem of the earnings to be achieved on the heavy expenditures now making by the railroads, the uncertainties surrounding the war in the far East and its possible complications and the natural unsettlement usual to a national political camiaign in this country are some of the substantial grounds for the hesitation. High- Low- Clos. RAILROADS Sales, est. est. Bid. Atchison 4,80) 64V4j 64 64 Atchison pfd 2 884 88ty '4 Baltimore AL- Ohio 7..'.'-) 73a,i 734 7IU B. & O. pfd f,7 Canadian Pacific 900 110 109 110 Central of New Jersey 153 Chesapeake - Ohio 'hi. ac . A. Alton 5'0 39 JIS ' Svu C A A. pfd 200 80 80 80 Chicago Great Western... 4'0 14'i 14 144 CnicajJO & Northwest pi Chi.. MIL & St. Paul 6.600 13S'i 137 138 M. & St P pfd 173 Chi. Term, and Trans 9 Cat T. and T. pfd 300 19 19" 18 . C C. A St. L 744 Colorado Southern 300 17 17 171, C. S. first pfd -f.ivj C. S. second pfd 231 Delaware 4 Hudson 100 150 149 i4i Del.. Lack. & West 250 Denver & Rio Grande ... jjj D. A R. G. pfd 100 54 r. 65 Erie 4.1' 22 23 22 Erie first pfd 00 61 61 61 Erie second pfd 2Hl 37 37 37 Hocking Valley 72 Hocking Valley pfd 500 78 77 77 Illinois Central 400 126 126 12 Iowa Central 7 Iowa Central pfd 33 Kansas Citj Southern i( K C S. pfd 31 Louisville & Nashville 2"ö 1"2 10 102 Manhattan L 70o HI 139 uc. I Met. Securities 700 80 76 75 ; M-t Streef-ra'.lway 1.400 11 1064 MfMa Minn. & St. Louis 56 M . St. P. A S Ste M ... IM 59 5ju ;,9 M . St. P. & S M pfd. l'n'i 117 117 117 Missouri Pacific 3.000 87 87 S7 Mi. Kansas A Texas 600 16 16 16 M . K. T pfd 36 Nat. R. R. of Mex. pfd 34 New York Central 1.7v 113 112 lin Norfolk A Western 54 M 03 N. & W. pfd P2 Ontario Ä Westenn 1,5"0 19 19 19 Pennsylvania 35.4Vi 112 111 112 P . C. C. & St. L 59 Beading 2,4'Vi 39 89 39 Beading first pfd 7 Reading second pfd 5 Rock Island Co 2.000 19 19 i9i.4 Rock Island Co. pfd 3'X 59 5 59 St. L. & S. F. 2d pfd 300 41 41 41 St Louis Southwestern 13 St. L Southwest, pfd 7r 31 31 31 Southern Pacific 2.800 42 42 42 Southern Railway 00 19 1 19 Southern Railway pfd 4Y 81 81 1 Texas A Pacific 100 22 23 22 Tol.. St. Ixiuls A West.... 100 24 24 22 T . St. I A YV. pfd 33 l'ni..n Parifl. a.uw 715, 86V, 1" 17 17 17 . 5.000 33 32 33 H 17 00 40 35 39 A rr aaaaa a Baa Colon Pacific pfd , Wabash Wabash pfd Wheeling Lake Erie.. Wisconsin C- ral Wis. Central pfd EXPBESS ( ' M PA NI ES Adams 220 Amerlran 185 I'nlted States .... 103 Wells-Fargo 205 M1SCFLLANEOUS y Amal. Copper l!.$O0 45 44 45 Am. Oar and Foundry 100 19 1$ 19 Am. C F. pfd W 69 9 CS American OOttoa Oil 3M) 28 28 28

Pales of stork, shares , Corresponding day last year...... Sales to date this year To corresponding date last year..

Am Cotton Oi! pfd American Ice Am. Ice pfd American Linseed Oil Am. Linssed Oil pfd American Locomotive Am. Loco, pfd Am. Smelt, and Refining. Am. S. and R pfd American Sugar Refining. Anaconda Mining Co Brooklyn Rapid Transit... Col. Fuel and Iron Consolidated Gas Corn Products Corn Products pfd Distillers' Securities General Electric International Paper Inter. Paper pfd International Pump Inter. Pump pfd National Lead North American Pacific Mall People's Gas Pressed Steel Car Pressed 8teel Car pfd Pullman Palace Car Republic Steel Republic Steel pfd Rubber Goods Rubber Goods pfd Tenn. Coal and Iron United States Leather....

'4Ö0 7 7 7 100 's Si200 21 21 21 81 500 46 4 46 91 2.000 123 122 123 7.'7ÖÖ 39 39 39 00 26 25 2 LS 190 189 18$ 700 13 13 13

4 23 182 n 65 33 71 n; 80 93 300 100 100 160 11 65 159 11 65 200 200 200 100 100 14 80 2.2 M L's 69 tft 14S 80 25 92 2 84 69 m 7' 42 70) 100 'iöö 100 2, Hl 4 85 " 77 5 46 4 m 65 41 18 is" f 77 5 4 4 10 5-' 1 . 75 35 J Hi 46 12 49 10 55 155 88 U. S Leather pfd I'nlted States Realty 1.800 U S. Realty pfd I'nited States Rubber. f S. Rubber pfd i'nited States Steel C S. Steel pfd W'cstinghouse Electric Western Union 200 1.000 11.100 200 88 8S UNITED STATES BONDS C S. refunding twos, registered .F'4 .10 .106 .! 132 .132 .106 .1-7 u. S. S. refunding twos, coupon... threes, registered r. u. threes, coupon r. II. r. S. s. s. new fours, registered new fours, coupon u old fours, registered U. S. old fours, coupon RAILROADS Atchison general fours Atchison adjustment fours Atlantic Coast-line fours Baltimore A Ohio fours Baltimore A Ohio three-and-a-halfs Central of Georgia fives Central of Georgia first lnc Chesapeake A Ohio four-and-a-halfs Chicago A Alton three-and-a-halfs Chicago, B. A Qulncy new fours Chicago. M. A St. Paul gen fours Chicago A Northwestern consol sevens Chicago, R. L & Pacific R. R. fours Chicago. R. I. A Pacific R. R. col. fives.. C. C. C. A St. Louis gen. fours Chicago Terminal fours Consolidated Tobacco fours Colorado A Southern fours Denver A Rio drande fours Erie prior lien fours Erie general fours Fort Worth A Denver City firsts Hocking Valley four-and-a-halfs Louisville A Nash, unified fours Manhattan consol gold fours Mexican Central fours Mexican Central first lnc Minn. & St. Louis fours Missouri. Kansas & Texas fours Missouri. Kansas A Texas seconds National R. R. of Mexico consol fours New York Central gen. three-and-a-halfs New Jersey Central general fives Northern Pacific fours Northern Pacific threes Norfolk A Western consol fours OreatM Short-line fours and partlc Penn. conv. three-and-a-halfs Reading general fours St. I.ouis A Iron Mountain consol fives St. Louis A San Francisco fg. fours St. Louis Southwestern firsts 100 91 101 93 1 15 66 Ml 7 91 10S 129 (Ai4 : 9" 79 57 84 97 $f V4 104 104-, 9 103 64 13 , ft 98 77 74 .129 ,103 ' ,(7 . 91 . 95 8f .113 81 92 9 ti .111 .115 m 1031t . ft5 . 72 115 . 58 . 87 . 89 70 Seaboard Alr-llne fours Southern Pacific fours Southern Railway fives Texas A Pacific firsts Toledo. St. L. A Western fours. I'nion Pacific fours I'nion Parlflc conv. fours U. S. Steel second fives Wabash firsts Wabash deb B Wheeling A Lake Erie fours Wisconsin Central fours Colo Fuel conv. fives Offered. BROKERS' VIEWS ON THE STOCK MARKET. A. W. Thomson NEW YORK, March 12 The opening was heavy in the tractions and the leading railroads, but wss quiet In the rest of the list. Metropolitan was the feature on the resumption of the selling movement of yesterday. The hostility of the subway Manhattan peopl in particular caused the selling, for no doubt the Metropolitan will lose business when the subway Is started, next June. The earnings of the company are also receiving some consideration. Traders were responsible for the decline In American Locomotive, and showed some disposition to sell Pennsylvania. Baltimore A Ohio snd Cnion Pacific. American stocks abroad were Inactive. Taking the market in its entirety, prices to-day seem to reflect a well-defined selling movement engineered by forces much stronger and broader than l.as been In evidence for some time The reason for the selling may appear later, but at the moment there Is little news of importance. Market closed quiet. (Meyer & Kiser 1 NEW YORK. March U The features of today's market were the severe breaks In Metropolitan Street-railway and Metropolitan Securities. Both of these storks slumped badly and served to demoralize the rest of the market Fortunately, the market was so narrow that the malign influence of the breaks in these stocks was restricted. There is no absolute explanation of the weakness in Metropolitan whh h can be offered with poslttveness. There are many suggestions, and some of them are that the Metropolitan will suffer when the subway Is opened in June, that the Interborough Company has blocked the subway plans of the Metropolitan, that the Interborough wll control the Williamsburg bridge franchises, and that the Whitney and Elklns estates are liquidating their holdings in Metropolitan stock. One of the facts in the case Is that under the t -rmi of the lease of th Third-avenue the Metropolitan will have to begin the payment of 5 per cent, on $16,700,000 of, stock on April 13. This would scarcely be sufficient, however, to cause the pre-ent decline in the stock. Metropolitan, howeve-. is not earning its own 7 per cent, guarantee, and consequently the additional $8ofl.U" annually will be somewhat of a burden. There was genuine liquidation In Metropolitan to-day. and the selling for short account was limited. The stock closed at the bottom. Manhattan and Brooklyn Rapid Trankt were sympathetically weak, although they did not break very badly. Pennsylvania was hammered and broke below 112. at which point some stop orders were caught. Support was extended at this point by several prominent houses, and the stock rallied. Fnlon Pacific developed some weakness. The Steel storks were firm. Amalgamated Copper was weak and Sugar eased off somewhat. People's Oas was one of the particularly weak features of the trading. There was more activity In the early session than hss been seen for a long time. The market, however, was still narrow and professionsl There was some selling of Consolidated (Jas that looked as if It might come from the same quarters as the Metropolitan selling The bank statement was a colorless affair and without Influence. The decrease In loans was larger than had been expected. nfl the loss In rash slightly leas than the preliminary estimates. Portprfleld A Co. NEW YORK, March 12 Reviewing the week, it has been unsatisfactory from a bullish standpoint, snd the whole list shows recessions. Dullness has been the pronounced feature, snd r-ut-slde of a few specialties there has been nothing doing. To-day there was big liquidation in N-w York trartlons on rumors of adverse legislstlon from Albany Metropolitan suffered the most, losing $5 per share Brooklyn Rapid Transit naturally sympathised with it Before the bank statement the market looked panicky, but the report was mere favorable than expected, and covering followed. We have been roner atively bearish on the list lately, nor do we advise purchases, believing the bottom is In sight. THE MONEY MARKET. Rates on Loans and Kxrhange Clearings nnd Discounts. INDIANAPOLIS -Commercial paper. per cent. ; time loans. &ff pr cent. Indianapolis Clearings. Saturday's Hearings Corresponding day last year... For the week $93 1 49 SO4.0O0 15 5. 47., 732 7 12tI.4L.-6 41 Balances (Saturday) xru-v.- VriKW . -Munev on rail nominal- wn loans Time loans steady, sixty days. 3 per rent : ninety days, 4 per rent ; six months. 4i4 per rent, prime merrantlle paper. 4'2 1 per . r.t Sterling exchance steady, with actual business In bankers' bills at $4 M TOtJt.st 75 for demand and at HM.toer4.83.tO for sixty-day bills; posted rates. $4 84 and $4 87. commercial bills. $4 3 4.83. Treasury Statement. WASHINGTON - Saturday's statement of ths treasury balances In the general fund, exclusive

The Sunday Jooroai, by Hail, $150 per Annum. $2.50 per Annum. of the $150.00i000 gold relerve In the division of redemption, snows: Available cash balance $226.357.018 Gold 110.21LW1

But. s Abroad. LONDON Money. rent ; dis counts. 3 1-16. Consols. S5 13 luS5 li-n PARIS Th account Excl per cent rentes. S5f 5c for the ce on lndon. 2Sf 16c for checks. BERLIN Exchange on London. ;"m 45pfg. Discount rates: Sh -.1 bids. 1 jer cent , three months' bills. 3. Markets for silver. NEW YORK. Bar silver. 57c; Mexican dollars. 45c. LONDON. Bar sliver. 26 lS-ld sn ounce. Imports and Kxports. NEW YORK. March 12. Total imports of dry goods apd general merchandise at the port of Neu York for the week ending to-dajf were valued at $11.312.376 Exports of specie from New York for the week were 7t4.2JI sliver and $1.278.708 jold. Imports of specie at New York during the week were 8TL8S gold and $3.694 silver. BANK RESERVES; THEIR MEANING Recent large increases In the surplus reawrvs held by the New York banks have carried the figures to the highest point reached In several years and have brought prominently forward the question of the desirability of a surplus much In excess of legal requirements. To begin with. Wall street was well-pleased with the Increases in the cash held by the banks It was argued that this meant that rates for money would be low. which would In turn stimulate stock market activity, and those who late last year were dreading a possible stringency in the money market found much ground f ir satisfaction in the position which the banks assumed soon after the opening of the year. Reserves continued to Increase; money rates, already low, became lower, but stork market prices failed to keep their part of the bargain and instead of advancing have declined from week to w-ek. Then it began to be said that the large surplus reserve held by the banks was after all not a bull but a bear argument, and this view of the case hss been accepted by Increasing numbers as the surplus has grown from week to week. The fact la that both reserves, either too large or tpo small, are unfavorable in their effects upon the stock market One shows that there Is overextension, the other that there Is lack of confidence on the part of those who have funds to Invest, but who refrain from doing so. During the past few weeks, when very large reserves were bring piled up by the banks. It was said that those who had money were hoarding it by keeping it on deposit In the banks Instead of placing it In securities, and ths course of the stock market and the character of the trading seem to furnish ample proof of the correctness of this view The Investment demand for stocks and bonds has fallen to a very low level so low. Indeed, that commission houses generally report what amounts to a cessation of business and only the professionals are left to supply such activity (such dullnsss would be a more appropriate term as the market Is showing at present. Large reserves. It is argued, are bad for the reason that they show a lack of confldsnre SSI the part of investors. Normally money seeks the most profitable employment which Is consistent with safety, snd when funds sre allowed to remain in bank tn exresatre amount. It is a fairly safe conclusion that a feeling of uncertainty prevails among Investors. At present there seems to be little room for doubt thst such a feeling doss prevail. There Is practically no (nvestment demand of the general character which represents the reinvestment of funds whloh gradually arcumulte in the hands of capitalists both small and large, and yet there car. be no doubt thst many could Increase their holdings of securities did they see fit to do so. The consldsratlon of the question of surplus reserves It one thst brings forcibly to the attention of the investigator the fact that extremes are always harmful The piling up of very large surplus reserves Is In Its way Just as undesirable as are the conditions which resuit in the falling of the reserves below ths I proportion which by legal enactment has been estaniisnefl as a safe and prudent one to be maintained between deposits and reserves New York Times. THE STOCK MARKET IW FEflRTARY. The stock market was very dull and depressed during February, Influenced by an unusual mmbinatlon of adverse developments. Except for a few fitful rallies, ths trend o prices was steadily downward, the lowest prices of ths month, and of the year as well, being made near its close. Much of the dullness was sttiibuted to the wild fluctuations in the commodity markets, the rerord-breaking movements la cotton, coffee, wheat and other rtsples diverting sttentlon from stocks, while the uncertainties surrounding the war In the far East and the disturbed markets abroad were a further Influsncs tn curtailing operations. Despite the weakness of the market, there was spiarent!y ery little liquidation, except Just followjng th Baltimore fire, when some of the insurance companies were forced to part with their security holdings to meet fire loss, a considerable part of ths recent foreign selling of American shares being considered of that character The market was almost entirely In the hands of the professional bear traders, who found little difficulty in forcing prices lower, as ths events of the month, from a Stork Exchsnge point of view, were nearly all unfavorable, ant in the absence of any outside buying, little resistance was offered to their efforts Banking1 Interests were credited with rallying to the support of the market on one or two occasions, temporarily checking ths downward movement. The bor.d market was seriously affected by ths Baltimore fire, a number of the houses who make a specialty of trading In this class of securities having to purchase bonds sold to ths Insurance companies, taking them temporarily out of the market, while the heavy borrowing! of a number of the railroads on notes also had a detrimental effect Money on call was easy during the entire month, averaging about 1 per rent . while time funds were offered In ronsiderable quantity at 3 per rent for short dates and 4 per cent up to one year Foreign exchange was generslly firm and recently quits strong. Railroad earnings were variable Dun's Review. Bobby's Bargain. Llppinrott's M.ig.izine. H riry and Booby, ages eight snd ten respectively, were little boys who thought and had tendencies. In consequence of whk'h. st times, they were a source of great embarrassment to their mother. Bobby, in particular. h;id the ronneymaking propensity. He saved .his pennies religiously and his eye wss keen for s bargain. One . !ng at dinner their father had as a guest a gentleman who was a great horseman. The boys listened attentively to ths conversation for awhile, then Bobby opened lire with "S.iy. Mr. Smith, can you buy a horse for s hundred dollars?" "Yes. Bobby," ssld Mr. Smith, "you can." " ;in you get one for fifty dollars?" "Yes." "For twenty-five dollars?" "Yes." "For ten dollsrs?" "Yes." "For seven dollara?" "Perhaps." "Seven dollsrs. really?" said Bobby wonderlngly. "Would the horse be swfulljr fast?" "Well." said Mr Smith, smiling, "v u would not be likely to get s Lou Dillon or a Dan Patch, but the cresture might be sbla to pull a plow." Ib.bby thought for a moment; then. "But, Mr. Smith, could a horse you psid seven dollars for have a colt?" "Poaalbly." ssld Mr. Smith gravely. "I have seven dollars in the bank." continued Bobby; "I guess I II get a horse. For If a seven -dollar horse could have g colt, and that colt have a colt, and that colt have Bobby's mother and father and Mr. Smith became seriously Interested In the. salad; the youthful Henry began to fidget; the embryo stock farm continued to grow "and that colt have a colt, snd that colt have a colt, and that colt Henry could stand It no longer. Turning to Bobby, he remarked in a tone of. impatience; "Say. aa soon as you think you have the worth f your money would you mind passing the bread?"

t