FINANCIAL REVIEW OF 1902. 



241 



4-per-cent. bonds by the Treasury, when rates de- 

 clined, and thereafter to the close of November 

 the range for money on call was from 6 per cent, 

 to 2 per cent. 



Time loans were 6 per cent, for thirty to sixty 

 days, and 4J to 5 per cent, for four to six months 

 on stock collateral in December, 1901, and until 

 after the middle of January, 1902, when the rates 

 fell to 4 per cent, for all periods, and from Feb- 

 ruary to April, inclusive, quotations were 3$ 

 to 4 per cent, for short and long dates respect- 

 ively. In May there was an advance to 6 per 



The clearings of the New York associated banks 

 during the clearing-house year ending Sept. 30, 

 1902, were $74,753,189,436, against $77,020,672,- 

 494 in the previous year. For twelve months 

 ending Nov. 29, 1902, the clearings were $76,477,- 

 924,342, against $79,059,126,079 for the same time 

 in 1900-'01. 



The condition of the New York Clearing-House 

 banks, the rates of interest, exchange, and silver, 

 and the prices of United States bonds on Nov. 

 30, 1902, compared with the same items for the 

 previous two years, are as follow: 



cent, for short, followed in June by a decline to 

 4 to 5 for all periods, and these rates remained 

 practically unchanged until September. Then 

 they rose to 6 per cent., plus a commission of 

 from 4 of 1 to 1 per cent., equal to 7 and 8 per 



The following is a statement of the average 

 loans, specie, circulation, deposits, and legal ten- 

 ders of the New York associated banks at the 

 beginning of each quarter and at the end of No- 

 vember, 1902: 



cent, per annum, in consequence of the monetary 

 derangement which then prevailed. In the latter 

 part of this month and in October banks re- 

 frained from offering time loans, having so little 

 money to lend that they preferred to employ it 

 on call, and the few time contracts recorded were 

 made with trust companies at the above-named 

 rates. After the monetary tension was relieved, 

 through bond purchases, rates declined to 6 per 

 cent v without a commission. The market for time 

 money was, however, firm in November, when 

 the demand was greatest for short periods at 6 

 to 7 per cent. 



Commercial paper of first class was 4 to 5 

 per cent, in December, 1901, so remaining until 

 February, 1902, when it fell to 4 to 4 per cent., 

 recovering to the above-quoted rates in April, 

 and declining to 4 to 4 per cent, in June. In 

 the following month there was a rise to 4i to 5 

 per cent., in August to 4 to 5 per cent., and 

 in September and October rates were nominal at 

 (i per cent, for all periods. No local business was 

 then transacted in paper, the banks being out of 

 the market as buyers, and merchants desiring 

 aecommpdation resorted to their banks for dis- 

 counts. Mercantile requirements were, however, 

 small, collections being generally good and suffi- 

 cient to meet current needs. It is noteworthy 

 that at no time during the monetary derange- 

 ment were merchants in the least incommoded 

 by the high rates, these being confined to the 

 Stock Exchange. 



VOL. XLII. 16 A 



Stocks. The stock-market was more or less 

 unsettled during the greater part of December, 

 1901, by active money, and also by important de- 

 clines in the price of some of the industrial prop- 

 erties, notably Amalgamated Copper and Ameri- 

 can Sugar Refining, the former falling to 60J, 

 compared with 130 six months previously, and 

 the latter to 103| from 126| at the beginning of 

 the month and 153 early in June. Toward the 

 last week there was a decided recovery in the 

 market, led by the anthracite-coal shares, the 

 rise in which was influenced by the very satisfac- 

 tory condition of the trade as indicated by the 

 unprecedentedly large production for the year 

 and by the maintenance of firm prices. Central 

 New Jersey sold at 196| as against 145| Jan. 4, 

 and Lackawanna was 258 Dec. 31 compared with 

 188i Jan. 3. The Reading stocks, Manhattan, 

 St. Louis and San Francisco, and Chicago. In- 

 dianapolis and Louisville common also recorded 

 notable advances. Among the exceptionally 

 large transactions during the month were those 

 in Amalgamated Copper of 2.555,000. and in 

 American Sugar Refining of 1,050.000 shares. In 

 January, 1902, the dealings in stocks were small- 

 er, and though there was apparently inherent 

 strength in the market, prices fell off on light 

 offerings. There seemed to be a disposition on 

 the part of speculators to await developments of 

 an encouraging character before venturing in the 

 market. The movement by the State of Minne- 

 sota for the institution of a suit in the United 



