New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-09-20
THE FINANCIAL MARKETS.
STOCKS CONTINUE STRONG.
CONDITION OF THE FEDERAL TREASURY
RAILROAD EARNINGS.
Sunday. September 1o-n

Sunday, September 19-p m.
There is little save speculative conditions for
stock values to react on. And speculative condi.
tons, or rather technical market conditions are
not in favor of any important or wholesale re-.
action as yet. When prices become Inflated
If they do-when speculation runs wild. and
when operators get deeper in the market than
warranted by their resources, substantial de.
clines may be brought about. but current mar.
ket indications give sign of such a situation.
Operators have taken profits right along and
after their handsome paper winnings have been
turned into real bank accounts. they have
rushed back to the market and taken out addi-
tional gains. The set Of people have not
been buyers throughout the movement. Buy
ers have become sellers, and sellers buyers II
is believed that the great mass of speculation
has been conducted upon conservative lines. and
certainly the market fluctuations in the major
ity of issues and the daily transactions have
not been so large as to indicate violent specu-
lation. Except in a few instances prices have
advanced gradually and conservativey. Daily
dealings averaging 100000 shares seem large in
comparison to the small totals Of the recent years
Of depression, but matter of fact they
are not beyond the limit warranted by actual
conditions The current market Is exceedingly
broad and heavy selling may take place Ia one
stock while as heavy buying may be going on
in another. People who make ten points In a
high-priced share may take their profits and re-
invest in a low-priced share which has not
joyed the same measure Of Improvement and.
again. other operators may take up the hign-
priced shares because Of their investment value,
the certainty Of their advancing TO a higher
level on increased dividend prospects and con-
stanty improving earnings. The current mar
ket is one In which some stocks will fall while
others are rising, and, although on some days
evidence appears TO Indicate that the buying
appetite Is satated, digestion works rapidly, and
the desire for further good things soon returns.
II appears from the present course Of specu-
lation that the majority Of people have learned
from the experience # the past the value OF
caution in market operations. well as In all
business undertakings, and that they realize
that the health of the market depends 10
great extent upon the manner of their opera
tons. There are a number OF people who are
actively preaching Of the dangers in present
stock market values. They assume that the
future is more than adequately discounted and
that prices are bound to descend" The best
answer TO the assertion of THE Pail Mall
Gazette" is found in the comparison Of stock
prices the day the assertion made and
for the corresponding period for number OF
years back, as made In The Tribune on Fri
day. Taking sixty active railroad stocks on
Tuesday last II will be found that the average
value was about $50 share At the same time
In 1S92-a year Of great prosperity-the value
Of the same number Of stocks per share was
SEA II: in 1889, S66 80; in 1SSS. S63 A.; in 1851
S63 90 and in 1855, S64 40 In the last three
years Of depression the average for the same
number Of stocks at their highest points was
only a trine under the average now prevailing.
According 10 statistics of values in former ears
prices are not too high and when 1t is borne
IN mind that In August 1897, the volume OF
the countrys business larger than in the
same month Of the most prosperous year in the
history Of the country, 1t will be conceded that
prices have not discounted better times and
III fhaxya n1ft hafn a
ranted by the actual Improvement in business
and brilliant prospects for the future. Bank
cearings and railroad earnings In August, 1897.
were larger than in the same month in any
Of the six years OF prosperity preceding the
panic Of 1893. 1t is upon this basis that stock
market speculation Is being conducted, and
while no man can say that stocks will go up or
down. 1t can be reasonably inferred that prices
will go higher. Concessions In prices invite
fresh buying Every brokerage house In the
city has scaled orders to buy on all reactions
and concessions. and all bear drives and con-
certed efforts to depress prices result In rush
OF buying orders and give the bull movement
renewed force.
The marketing OF cotton. which is now under
way, is responsible for the lower rates for for
eign exchange. and It is also In measure
sponsible for the hrmer tendency in the money
market, the increased outflow Of currency from
the banks being traceable in great part TO the
active movement of cotton 10 market The
money requirements on this centre for crop
movement purposes showed a further increase
last week. and in this connection II Is interesting
to note that grain shipments in the week were.
with a single exception, the heaviest on record
aggregating 6,3SO.0O0 bushels. And 1t is also
worthy OF note that. owing to the heavy move
ment Of grain ii the seaboard. the trunk lines
have increased the rates on wheat from Chicago
to NewYork two cents per hundred pounds.
Money market rates advanced in the week 10
2d2io per cent for call, with corresponding
advance in time money and commercial paper
rates the result of which was more satisfactory .
rates at which bankers could loan the proceeds
OF the sales OF their siXty-day bills. This, to-
gether with the enlarged supply Of cotton bills
and an excess of foreign purchases OF securities
over sales. reduced exchange rates to about the
gold mporting point. and IL was confidently ex-
pected that gold shipments from France would
be made in the week. There is little doubt about
the beginning OF the movement this week. Ster-
ling exchange declined about IA cents last week.
The trade balance for August was again largely
in this countrys favor. and in the first two
weeks in September exports showed an increase
OF II per cent the corresponding time a
year go. While imports 20 per cent small
be noted that the import movement gradually
over recent weeks. and that the re-
ceipts under the new revenue bill were proper
tionately larger. When the heavy stocks I'M
ported prior 20 the passage OF the bill have been
reduced the Governments receipts Will exceed
and the deficit OF Cleveland days
will gradually be offset by a growing surplus
The following tables show the movements OK
the principal active stocks and bonds In the
week: