276 



FINANCIAL REVIEW OF 1892. 



abundantly offered at 5 to 5 per cent, for thirty 

 to sixty days, but the demand was not urgent. 

 Commercial paper of first class and short date 

 was quoted at 4f to 5-J per cent. In December, 

 until the 15th, call loans ranged from 3 to 7 per 

 cent., averaging about 5i, and time contracts 

 were freely offered at 4 to 4^ per cent, for thirty 

 to sixty days, 5 for ninety days to four months, 

 and 5 for longer dates, while short-date com- 

 mercial paper was in good demand at 5 per cent. 

 On the 15th, influenced by the comparatively 

 large movement of gold to Europe, and espe- 

 cially by a realization of the fact that the ship- 

 ments were largely if not wholly the result of 

 the redundant silver currency of the country, 

 money on call advanced to 25 per cent., and on 

 the 19th it was bid up to 40 per cent., immedi- 

 ately falling to 6 in consequence of a good sup- 

 ply, and by the 21st the market had resumed its 

 normal condition. Time loans were 6 per cent., 

 and this was the rate bid for commercial paper 

 of all dates and grades for the remainder of the 

 month. On the 24th deposits were $444,370,100, 

 and on the 31st loans were $437,722,000, the 

 lowest of the year. 



The condition of the New York Clearing-House 

 banks, the rates for money, exchange, and silver, 

 and prices for United States bonds on Jan. 7, 

 1893, compared with the preceding two years, 

 are as follow : 



gross receipts, and this led to propositions for 

 pooling business in such a way as not to con- 

 flict with the interstate law ; but as an amend- 

 ment of that law, to permit pooling, was dis- 

 cussed after Congress assembled,the consideration 

 of the scheme by the railroads was abandoned. 

 The Western Traffic Association was dissolved 

 Oct. 11, in consequence of the withdrawal of the 

 Chicago, Burlington and Quincy. One impor- 

 tant event of the year was the decision in August, 

 by Judge McCormick, sitting as a circuit judge 

 in Galveston, Texas, against the power of the 

 State railroad commissioners to fix rates below 

 a reasonable limit. The Reading coal combina- 

 tion was formed in February, embracing the 

 Central New Jersey, the Port Reading, and the 

 Lehigh Valley Railroads. A bill was passed by 

 the New Jersey Legislature in March to legalize 

 the combination, but this bill failed to become a 

 law. In August, Chancellor McGill, of New 

 Jersey, decided against the validity of the lease 

 of the Central New Jersey to the Port Reading, 

 and by the end of the year this road and 1 he 

 Lehigh and Wilkesbarre Coal Company were 

 withdrawn from the Reading combination. Un- 

 successful attempts were made to reorganize the 

 Richmond and West Point Terminal Company, 

 and in June this corporation, the Richmond and 

 Danville, and the East Tennessee, Virginia and 

 Georgia Railroads were placed in the hands of re- 



* Extended 2 per cents. 



The following is the New York Clearing-House statement of totals at the beginning of each 

 quarter of 1892 and at the end of the year : 



Railroads. The heavy traffic over the grain- 

 carrying roads, which was a noticeable feature 

 at the end of 1891, continued with few inter- 

 ruptions during the first half of 1892 ; but in 

 the last six months, when the new crops began 

 to move, earnings did not show a very marked 

 increase, mainly for the reason that comparison 

 was made with the heavy traffic in the last six 

 months of 1891. Complaint was general of low 

 rates on competitive business, which kept net 

 earnings down to a small percentage of the 



ceivers. On Oct. 26 the Boston and Maine passed 

 under the control of the Reading, and friends of 

 the latter, having bought control of the New 

 York and New England, proposed that this road 

 be made a link connecting the two systems. 

 Railroad construction was discouraged by the 

 aggressive course pursued by railroad commis- 

 sioners and Legislatures of several of the West- 

 ern States, and also by the low rates made com- 

 pulsory by the operation of the interstate com- 

 merce law. The South was depressed during 



