New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-02-15
STOCK SPECULATION Dull.
WEEK OF LOWER VALUES.
,oxns CONTINUE ACTIVE AND HIGHER
CONDITION OF THE FEDERAL
TREASURY

rnon the development of industrial activity an
instance Of this being afforded in the present
condition OF the bond market in which a freer
rooyennent OF capital is growing more conspicu-
ous every day. Values, however depend TO a
great extent upon expected business activity.
and the marked increase in the transactions in
hands reflects the belief among investors that
the days Of business depression are drawing to
q close Capital is not timd as far as invest
ments in well-established money making inst-
,utons are concerned. but IL is held back from
new ventures in times like these until the last
obstacle to general improvement has been re-
moved. in the present situation the settlement OF
the tariff question being the only factor upon
which business expansion waits. When an &C
five period begins in industrial enterprise. Sc
curity values often likely to fall from the
realizing of profits by those who bought when
times were bad. and when the height of pros
perty has been reached the temptation among
investors 10 take their profits is too great in
many cases 10 he passed by, the result being
falling prices in prosperous times The absorp
tIon Of railroad mortgages both on the Stock
Exchange and over the counter is pronounced,
investors who are buying realizing that the
reri0d Of railroad bankruptcies is over; that the
majority Of newly reorganized properties have
emerged from their troubles frmer and stronger.
both as regards their physical and financial con-
djiions. and that the future holds out for them
strong promises of successful existence. Specula-
tive manipulations and tendencies do not enter
into the bond market on the same basis as in
stocks and in periods of business recovery bonds
apreal more strongly to investors than stocks.
as mort gage payments rank ahead OF dividends
and the market value of a bond is less likely TO
suffer from unexpected business setbacks or
,lanipulative attacks by professional traders.
The stock market has been left in the hands or
the professional element so long that IT offers
h. Mo do
outside efforts being generally repealed by the
tactics OF board room operators, number OF
whom are not above employing means to secure
Drofts. sCandalOus 10 the Stock Exchange COM
munity in general and harmful 10 the cause of
legitimate speculation.
The condition Of the security market so far as
stocks are concerned reflects speculation in con-
troll OF the professional element, with no import
ant change i'm vaiues-outside of the industrial
shares-and no unfavorable factors upon when
70 base attacks for lower values. Holders or IN
yestnent stocks show no disposition TO be drawn
into liquidation, and IL is not likely that any de-
yeloprlent will occur TO make them change their
minds as TO the wisdom OF holding their posses
sions They have every reason TO believe that
the intrinsic value Of their stocks is above their
market value on the theory that the future
business condition Of the properties which their
shares represent is assured of prosperous en-
hancenlent Investment holdings of stock issues
are large. and there is a very small supply OF
floating stock on the market. the principal source
being speculative holdings and even these, ex-
cspt perhaps, In the manipulated speclaitles, are
closely held at present. large speculative inter
ests remaining aloof from active operations be-
Ing satisfied to wait for future advances before
engaging in transactions. STOCKS as a rune are
strongly held In the many sumps ana declines
~ the last year. including the venezuelan
panic in 1895 there large accumulation or
stocks ny strong interests and II is not 10 ne
supposed that at the present range OF Nalues
these holdings will come upon the market. heavy
interests have acquired stocks at prices lower
han those now prevailing. They hold all they
can handle. and they can afford 10 wait lot ~
ture developments before making themselves
prominent in stock speculation. Inc result Is
dull trading. the small fry in control ana prices
moving within fractional limits Iraders VINO
squeeze profits OUT Of prices which nuc'uate WIN
in a range of / per cent and less, are the chief
operators on the Exchange the only exception
being in the industrial shares, in which speciaI
influences have induced considerable large lisiue
trading. -.
industrial share speculation in the week, the
business in Sugar Refining being in many cases
conducted on fictitious transactions. similar 10
those of bucket shops. but fortunately connned
10 a small number Of operators whose EXPULSION
from the Exchange would be Weicoiheo pS tne
majority of members. The operations are con-
Quoted in such a way. however, that evidence OF
wrong doing is almost impossible 10 obtain. al
though IL is morally certain that there are Vioia-
tons Of correct business principles.
rhe warlike preparations OF Greece have dis
turbed the European markets, the effect OF when
is reflected in the local market althoush tns
narrowness of speculation prevents any marked
influence upon prices. The chief incident or the
week was the disruption OF the steel ran poor;
and while not infuegcing stock values, II caused
a wide amount Of discussion as TO It's DroDaDle
effect in the future upon railroads ana upon
steel and iron industries. Already the disrup-
lion Of the pool has caused enormous purchases
Of rails py railroads throughout the country az
greatly reduced prices. the result OF which VIII
be Increased activity in track renewals ana new
construction, the employment OF many ny
hands by tne railroad companies and the WORK
ing NJ iron mines TO their utmost capacity AS
70 the companies interested in steel productloh
the rivalry will lead TO increased working forces,
but reduced wages: and this last feature OF the
situation presents a question "hlch VIII oehah9
the serious attention Of the companies concerned
Besides the steel pool dissolution the large
purchase Of print cloths at Fall River was an
incident OF Importance to the business word
hui the effect not noticeable IN STOCK EX-
change business. the small community OF people
engaged in stock speculation in the week APP
parently focusing their attention upon the trust
investigation by the Joint Legislative commute,
foreign affairs and the course OF the arpitration
treaty in the Senate. TO the exclusion OF FACTORS
which VIII have most important bearing upon
Industrial revival
THE MONEY MARKET.
The local money market continued ca. with
large supply OF idle funds al this centre Money
on call al the stock Exchange lent at l12@Z per
cent with the majority Of transactions under the
last-named figures Most OF the banks main
tanned - per cent the minimum but trust COM
panies quoted ~ per cent In time inoney IN.
demand was light. with rates unchanged at
months and :; per cent for four and six months
The commercial paper offerings were not heavy
but the best names were readily absorbed at -.
"A per cent for all periods. In few cases lower
rates were reported. The foreign money markets
were not materially affected by political uncer-
tainties although al the end Of the week there
vas hardening tendency IN discount rdte,:
owing TO Cretan Developments. In London cali
money ruled al 1Q1i. per cent. with open market
diseounts at rs per cent. In Paris the open
market rate was | q per cent, and in Berlin "a
FER cent, The Bank Of England minimum rate
remained al . per cent. The Bank gained IN me
Week ti.JJ 193 bullion. and held al the close tot
W}i9 Foreign exchange was dull ana steady
without important feature. II was reported tilat
small buying movement of long sterling for IN
vestment was under way. purchasers evidently
believing that bills bought al current rates Wouiu
L. IN, hen eXpOrtS are