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February 28, 1903.
RECORD AND GUIDE
381
oy •â– ESTABUSHEDV/^ARPH2l-^1868.
Db/oi^ P f^L Estate . EuiLDifJb AFtcKiTEcruRE.Housalom Degc2?^[1,
PRICE PER. YEAR IN ADVANCE. SIX DOLLARS
Published eVery Saturday
Communications slionld bo addressed to
C. W. SWEET, 14=16 Vesey Street, New YorK
t. T. LINDSEY, Bnslnesa Manager Teleplione, Cortlandt 3157
"JEntered at the Fost O.ffice at NmD York. Jf, T.. as second-class matter."
Voi. LXXI. FEBRUARY 2S, 1903. No. 1824
J:;eady for DjEliveby next week.
The cnniiial iiiimhcr of the Record aud Guide Quarterly coutain-
hi'i all the real estate record.'; for Ihe year 1002, uunotafcd and al-
phabclieally and uumericuily arranged, ivHl be rcadi/ for delivery
neji^i week. Published by the Record and Guide, IJ andlG Vesey
Sf.
THE expectations of better prices upon the Stock Market,
mentioned last week, were based upon the then seeming
certainty of a smcetli and speedy passage of the Aldrich bill
through Congress. The uncertain and disturbed conditions tbat
actually supervened on the market- were due to the clouding of
this prospect, and even to fears that, as the time left for action
was becoming so short, the bill could not pass at all. It is dif¬
ficult to believe that Congress will leave the business com¬
munity facing another and severer currency sti'ingency in the
coming fall without bestowing this simple palliative of one of
the worst features of our system—the aceumulatiGU of money in
the Treasury at the moment when it i's most in demand for the
transaction of Ihe business of the country. If they do they will
be guilty of a serious neglect of duty, and the President will be
justified in reminding them of it by calling a special session to
consider the whole currency Question. It is to be hoped that
either they or he will not wait for mischief to be done before
applying the remedy that either has the power to apply. The
hardening of both call and time money is as much due to the
anxiety that tbe present condition of tbe .\ldrich bill creates in
tbe mind of the community as to the falling off in tbe reserves
of the banks. The latter movement is customary at this time
of the year, but tbe caution that failure of the bill would en¬
gender would not only hasten the process, but would also pre¬
vent repletion of the reserves when, under ordinary conditions,
money should return to this centre. Conseciuently, with the
powers of the Secretary of the Treasury to afford relief in a
time of pinch restricted to their present proportions, money will
become dearer and stay so. This will certainly tend to contract
business, if it is not followed by more serious consequences. In
view of the criticism bis action met with and the reproof implied
in a refusal of Congress to give legal sanction to its repetition,
the Secretary of the Treasury cannot be expected to again re¬
ceive as security for government deposits other collateral than
that specified by law; and, so far as he is concerned, any relief
be could give to the money market, should it be required next
fall, would be less than he gave last year. The circumstances of
the moment gave more than ordinary importance to the small
shipment of gold to Buenos Ayres this week, because, although
a special transaction, it shows that London has still power to
call gold from this inarket, and adds another complication to
an already unsatisfactory situation.
IF London dispatches are to be credited, the South American
demand for gold, which has been partly met by shipments
from New York, is about over. Further shipments from here
are not expected. The incident serves to call attention to the
recovery that has taken place in tbe Argentinas. As a result of
good crops and good prices for wool, the Republic is doing a
large trade with Australia and South Africa, as well as with
Europe, and in consequence has heen drawing gold from all
three. This is in striking contrast with her previous position
since the Baring fiasco, and is much to be esteemed. Business
conditions of Europe have brightened this week, owing to the
passing of tbe war cloud from the Balkans. This was brought
about partly by the prompt acceptance of the plan of reform
for Macedonia by the Sultan, but more particularly by Russia's
intimation to the sympathizing Balkan states that any that
should forcibly interfere would be left to its fate precisely as
Greece was in 1S98. Tbe Powers seem to be sincere in their
union on this matter, and as determined that reforms shall be
brought about peaceably if possible as that they shall be brought
about, peaceably or not. This being the development of the latest
phase of tbe Near Eastern question, the Exchanges have taken
heart with accelerated liveliness iri transactions. One of the
important features of the situation is the return of the French
investor to the home market. This we have noted before, but
it is now more marked than ever, and is important in indicating
that the dread of internal political conditions no longer sways
the mind of. the French investor, and this is a political barom¬
eter whose records are entitled to respect. Another item of in¬
terest is that Spanish 4s, which during our late struggle over
Cuba sold down to 40, are now selling at the highest prices in
their history, something above 91, that is, from a 10% to a 4.4%
basis. It is said that the most recent advance is due to buying
l;y the Bank cf Spain in connection with a financial operation
the nature of which is yet to be divulged, but in the main the
appreciation of the quotations of this typical security is due to
the improved economic condition of Spain itself, and this iu turn
to the relief from the burden of colonies she could neither sup¬
port nor control. German and British iron markets are im¬
proving. Superficial observers see in this only a result of the
American demand, but those who look closer must give the fact
a larger commercial barometrical value, pointing to a revival
of business generally. This is the proper estimate to be placed
upon it, and it is the natural corollary from the not merely bet¬
tered conditions in Europe, but also from satisfactory harvests
and improved prospects in other parts of the world that look to
Europe for their supplies of manufactures as well as for the
capital to carry on their own industries.
7\ S long as there is no possibility of the passage of Comp-
A~i. troller Grout's bill amending the act constituting the
Rapid Transit Commission, it may be hoped that the adminis¬
tration will use all its influence to have passed the amendments
to the same act, introduced recently by Senator Elsberg. These
amendjneuts, which have been prompted by the Citizen's Union,
are designed to increase the powers of the Rapid Transit Com-
mission, and enable it to secure better terms in letting contracts
for constructing and operating extensions to the Subway sys¬
tem. If they are passed the Commission will be able to let the
construction contract in sections, and so save large sums to the
city; it is given the power of granting the operating contract
for twenty years, or if the city supplies the equipment, for ten
years. It is even enabled to operate the road itself in case an
advantageous arrangement cannot be made with a private cor¬
poration. Past experience has shown that these increased pow¬
ers are necessary in order that the city itself may reap the ad¬
vantage of the increased traflic instead of turning it over for
seventy-five yeai's to private capitalists. Under the present
contract, no matter how large the income from the tunnel grows,
the city does not receive anything more than a fixed rental; and
Mr. Edward M. Shepard estimates that these terms areworth from
$30,000,000 to $50,000,000 to' the Subway company. Doubtless
there was no way in which part of this money could have been
saved to the city, except by tbe municipal operation of the road
—a step for which public opinion was not prepared; but it can
be saved.hereafter by giving the Rapid Transit Commission the
powers proposed in these amendments. In this matter, New
York cannot do better than follow the example of Paris. In
another column will be found some account of the way in
which the new iWetropolitan Underground R. R. in that city has
succeeded. Apparently some serious mistakes have been made
in constructing tbe road—mistakes wbicb have, so far as possi¬
ble, been avoided in New York; but the operating contract gives
the city a third of the. gross receipts—a proportion which not
only pays for the interest on the bonds, but already gives the
municipality a profit of hundreds of thousands of dollars a year.
It is interesting to note that in spite of a 3-cent fare for a large
part of its traffia, and the provision of a seat for every passen¬
ger, the company can still operate the road for 43 per cent, of
its gross receipts, which is very much better than New York
transit companies can do with a 5-cent fare, and cars that are
frequently jammed from door to door. Moreover, although the
Paris company only receives 25 per cent, of the gross receipts
net, its stock is now selling for twice the figure at which it was
originally issued.
THE effect of prevailing conditions in the iron and steel
trade has been to cause additions to be made in tbe prices
of iron ore, steel rails and wire nails. Presumably this tendency
will be carried into prices of other iron and steel products as the
spring demand reveals itself. This state of things may seem in-
oonsistent with the increasing stocks of pig iron alluded'to last
week and with other testimony that constructive work through-