New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-08-02
THE FINANCIAL MARKETS.
STOCKS UPWARD MOVEMENT
HEAVY BUYING OF BONDS-CONDITION
OF THE FEDERAL TREASURY.

The summer movement in the stock market Is
not extraordinary in view OF the change In
financial and business conditions. which has
taker place within the last few months Much
IS heard about the unusual advances In
securities and the wonderful strength Of the
market but when time is taken to look into the
situation It will be seen that IL would be
strange IL people were not buying stocks
and bonds. and mysterious II prices OF securi-
ties and products were not enhancing. The
situation in the stock market IS easy of
PLANTATION. II has been explained time and again
In this column. and it would only be repetition
ID enuInerate the factors which have been re-
sponsible FOR the current movement in Sc
curities. Nor is it clear that any further ex-
PLANTATION is needed in any quarter for the
actual course Of business affairs tells the story
more accurately than words and the advancing
values liz the security market are true refiec-
tions of the changing tide in the business inter-
ests of the country. 1t would be surprising IL
people were not placing their funds in the at
tractive investment channels now safely opened
for they can do so with every feeling OF con-
fidence and safety; confidence inspired by actual
indications of business progress; by the healthful
change in financial conditions; by the Industrial
activity promised from the passage Of new
tariff law; by the crops, and by strong intelli-
gent wise ard patriotic Administration in Wash
that the gold standard kept prices low see their
theory fading away in the light OF upward
values and those who preached that wheat and
silver moved together see a daily explosion OF
their pet theory. Wheat. corn, oats. pork, lard
and other products are we'll above their prices
for the corresponding time last year. while silver
is lower. and dropping to figures which no longer
leave a profit in It's mining. and make silver
standard country like Mexico tremble for fear
Of great financial disturbance.
The buying Of stocks and bonds in the local
md
In bonds exceeded the large total of the preced-
ing week. while the course of trading showed
wider distribution Of business and growing ac-
tivity I'm the low-priced shares, and in shares
which have long been inactive. The investment
position appeared to be more clearly appreci-
ated by foreign investors, although they made
no deci led move in the market, and by foreign
spectators, who gave at times some indication
that they beginning to realize that they
could not afford 10 postpone much longer buying
in this market In order TO cover snort account
said to be Of no small proportion. The heavy
traffic movement which the grain and cotton
crops VIII supply gave indications OF what may
be expected in the way of railroad earnings dur
ing the rest of the year When this moVement
is considered in connection with the general
merchandise traffic, which a favorable fall trade
will stimulate, IL can readily be seen now favor
able the railroads of the country stand Tor IN
creased earnings. and how bright an outlook
prevails for dividend resumption and dividend
expansion This years wheat crop, estimated as
low as 500.OO0.000 bushels, will be over i2.3OOUW
bushels in excess of last years crop. and
at the advance in selling price this means
an additional profit on the crop OF up
ward of SOB 10000 for the farmers, as
compared with the crop Of 1896. This fur
nishes adequate reason for expecting
profitable business for the railroads and FOR
prosperity for the agricultural community. The
farmers will profit by the export trade of the
cereals but the manufacturers VIII also gam
from foreign demand for their goods, especially
for steel and iron products People VINO argue
10 the contrary are very much mistaken in their
judgment of the requirements of the foreigners
and OF the advantages OF purchasing IN This
market.
The value Of many securities made new high
records for the year last weeS. including the
Government per cents OF 1928. which were
quoted as high as 1868. and in the BOND depart
ment enormous business was done, this pelns
particularly pronounced In the Atchison and
Northern Pacific issues. The decline which
speculators expected would follow the passage
OF the Tariff bill did not occur and though there
was heavy unloading by local and foreign pro
fessiorals the market advanced toward hlsher
level: while the theory that the improvements
in the business situation and the passage OIL me
Dngey measure had been discounted was
smashed with no uncertain force. when Dear
operations exert every effort TO depress VaiueS'
when heavy realizing sales are made, ana When
Jor ion operators are heavy sellers. the falIufe
~ nrices TO go lower reflects the presence of a
moro powerful force than the speculative cle-
ment a force which has its origin in sire 22th-
eninC Industrial conditions and in commence
among investors. New buyers came into the
market on Monday Buyers who take STOCKS
outright were potent market factors. 3no me
nublic made such an aggressive showing thaI
in place Of the heralded decline values ADVANCED
throughout the list. The price of wheat ad-
vanced nearly five cents in the week western
receipts exceeded last years and western ran
roads were pressed for cars. crop reports we're
bright railroad earnings showed improvement,
and bank cearings for the week were ol pei
cent larger than in the same week Iast year
and per cent larger than In the same tlihe III
1900 With such conditions prevailing lhNes-
tors could hardly fail to be impressed Wi'h 'ne
advantageous opportunity to purchase seouIl-
,ies AZ current values. and they were not de-
tered from buying stocks and bonds from az
tan,pted bear scares because or goid eNpoI'a;
Furope has TO pay premium for our @oio' Gnu
although engagements OF the metal were aiso
made for this week. the offerings OF conilhei ,''
hills for August and September dehVerE Wei
so large that competent authorizes on the
ch,nee market believed that VITA the Weeh
sbinnen.s the outward flow would De 'N ~, ~.
Money market conditions were not appTeIia,pH
changed as far as the rates were cohceIilcu' ~.
,he,e was falling off in receipts OF cuTrEncS
fro,, tho interior and indications pointed toWaIu
q change in the movement at no dlstahl I'M.
,rba demand for money from TINS cehtrH ipI
cron movement purposes is not expected ~ Nv
ne large as I'm some years. because the iht0ii'i
1nstit,,ions are we'll provided WIN funoS.
rrho movements of the chief aciive STOCKS ',iiu
,onns in the week are given in the foho"'hs
tables