New-York tribune., 1897-08-09
THE FINANCIAL MARKETS.
HIGHER STOCK VALUES MADE
HEAVY BUYING OF sECURITIEs-CONDI-
TION OF THE FEDERAL TREASURY.
Sunday. August S-p. III.

Sunday, August S-p. III.
Substantial basis exists for the improvement
in stock market values. a gratifying chahse
has taken place in the business condition OF 'he
country. and securities prices have responded In
a way which has upset all calculations. ana
made it evident that industrial Improvement is
on a sound and legitimate foundation. In the
voek inst passed the volume OF business on the
Stock Exchange averaged more than 4iooVO
shares a day, and in bonds TO the par value or
S315600O the total sales in stocks amounting 10
1852 9JS shares and In bonds to the par vaiue
of S1S947 600 against SIS, 10000 in the preced-
Ing week Men Of sound understanding ana Oh
keen Judgment men Of substantial standing in
the financial community. have appreciated the
position of business affairs in this country and
have bought securities. Conservative investors
and solid business men have been active factors
in the market because they have reailzed the
steady improvement in the country's industrial
situation and because they have had every rea-
son to expect a profitable return on their money
put into securities at current values. Despite
the rise in stocks values are considerably lower
than I'm January 1893 II time is taken to con-
slider the conditions governing the situation at
that time and the prospects for the future' as
compared with prevailing conditions and present
prospects, il will readily be seen how reasohao'e
II is to expect higher values than at present.
and how safe it is to predict further increase
in stock market operations and interest. he-
ports of gains in the volume Of business have
not been fictitious. and adequate proof exists 10
clear the optimistic people who predicted pres
ent conditions months ago from the charges
brought by dismal pessimists. who stamped all
cheerful representations as idle ana ureaih!
talk
Pessimists of recent standing are beginning
to change their position in the light or daWnlhs
prosperity if they would measure the actuai
volume of new business now being oone. theS
should turn their attention to the study OF path
clearings and the analysis of railroad earnings.
These two factors will give them all the nent
necessary to full understanding OF whal Is
going on in the business world. When they nave
mastered the lessons Of bank clearings ana rail-
road earnings. they will be able more luiiy "
realize why the current advance IN securities
Is due to business conditions, rather than 10
speculative manipulation. Payments throush
clearing houses last week were 2S.4 per cent
larger than in the same week a year ago, and
~ per cent larger than in the corresponding
time in 1892 And 1t should be borne In nina
that this is not the season for active trade De-
spite this there has been material increase IN
production and consumption an increase IN the
number of hands employed. and in the Wiling
ness of people 10 enter into business operations
For the fourth week in July returns OF loIH
eight railroads show gain or lol per cent as
compared with the same week in lS''t. ana Tor
the month sixty roads show gam or Ooo per
cent. In addition to the evidence or business
progress furnished by bank clearings and rail-
road earnings. the marked falling on IN mercaii.
tile failures supplies further PROOF OF the vac.
change for the better which has taken place
in the industries of the United States. A most
radical change in sentiment has occurred IN
Wall Street. and in business circles in genera,
and from the tone of all conversations on the
business situation II is not amlss TO lnfer tnat
the great majoritv of men in TINS country pe-
lieve that the current year VIII be RECORD
breaker in the business history or the country,
No one could desire better situation than
that presented 10y the crops These promise 10
hc abundant ani the demand Tor them an,
normal from foreign countries; the influence OF
which will he felt in the agricultural COM
Irulitv with pleasurable force, ana lndiiec'i!
throughout the whole country. Already the for-
eign exchange market reflects the i1reIsn ae
mand for cereals and although L2ndon
continued all the week until yesterday heaVy
seller of securities in this market. the erect was
not sufficient 10 offset the exports or cereals'
ana il cannot now be long before gold imports
viii arrive i'm large amount to pay for foreign
obligations created 10y the foreign demand Tor
American hreadstuns and merchandise.
London selling in this market has been utterly
di-rcgaried. and prices have advanced despite
heavy sales for profits and vigorous enorts oy
iha boar element at reactions Buying orders
we're executed on every reaction in the week.
ard on every day there was wide distribution
~ business more issues being traded in than
.vor before in the history Of the Stock Exchange
7, can he safely said that top prices have not
vet been reached 1t was thought. in some
quarters that a reaction would come last week
but prices advanced on larger volume or pusl-
ness and substantial interests showed no dis-
poeition retire from the field, while the puDnc
continued To evince growing anxiety to purchase
stocks and bonds. 1t a strong pubic, ana
there were no indications of stocks passing from
strong To weak hands Interest was not con-
fined 10 the speculative leaders. Buying was
not limited TO "A few speculative and investment
snocialties The whole list enjoyed generous
and strong public support loW-prlced shares
sharing in the movement, and loW-prlced bonns
coming 10 the front in rapidly accumulating
numbers The shares Of the Western. Southern
and Southwestern railroads were bought on
their merits. and from the returns of their earn
ings published in the week further buying was
induced on the belief that such encouraging
gains reflected a speedy dividend resumption
and dividend enhancement. Record prices Tor
the year and for many years were made Dy
many issues The progress OF the market was
not remarkable when conditions governing IL
are considered. and bearing in mind that the
railroads Of this country will probably have
more traffic than they can handle. that the
crops will be enormous and that they VIII be
sold at advancing prices. that the balance OF
international trade will be in favor OF this coun-
try. and that period Of industrial expansion
has arrived, sufficient reason VIII be found Tor
the rush Of buying orders into the security mar
ket in this city. In the following table are
given the highest prices Of number OF stocks
in January, 1893. the highest in 1896. the lowest
in 1897, Saturdays closing, and the advances
from the lowest OF the year.
Jgies low