New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-08-29
TUE WEEKS OPERATIONS IN BONDS.

THE WEEKS OPERATIONS IN h'>D'
r,o current stock market Is full or interest
IA ,,ov,ne IN response to the material Vo"u'
.,ons ~ the countrys business Al ''ii'es inv"
:, q strong tendency on the part OF 'e't"'" w
.,ators to force the market lower 10
hordes into selling and to go sho'' u
because prices have already had 0oi''u'
-, co,oo onarators think subctantlaI re-
action due Many traders look aFkahoe at pre-
ONT values and refuse 10 ne recohCl'ei " .'-
changed relation of stock market Vaiues - u"
.r,nsc worth They cannot appreciate '"e Ia
that prices are now moving IN response ~
nuhlic demand created by conditions ui'ue' ''"s
The real value of securities. Inc s''u"''o'
90 tben They have been accustomed TOT
several wears 10 low prices and market 'io'V
,,ants controlled by the professional element
1.-TWO They hardly know what a legitimate IN
.os.r,a,. market is But the chances are tha'
,hev will learn something more about hie"
o~,ces and public buying before the year IS
over FOR. unless all indications fail the market
will .ell much higher in enormous TRANSACTIONS
bsfore the downward swing sets IN
The current market situation resembles tha' OF
1870 and 1880 save that II s far stronger IN ex-
,st,ng conditions and prospects And prices are
Gar below the best reached in the bull movement
OF those years Able operators in the ouli maj
ket Of 1879 10 1881 repeatedly solo their s'o0hs
thinking reaction due but were forced 70 ouS
them back al a higher level because the market
refused TO go lower and the public was not ais
nosed 10 be frightened 1t is not unlikely that the
market will behave the same way this year
Temporary reactions have already taken place
&c instanced last week. and future reactions are
20 be expected but in view OF the extraoroihaiE
situation In the business and financial worlo
prolonged decline al present does not seem
within the realm Of probabilities. Small traders
with light margins will doubtless he caush' III
this bull market as in all the DUH markets %
,ba nas, Traders who overtrade and think that
stocks cannot decline Will lose their money. nut
the shrewd and far-seeing operator who looks
beyond temporary fluctuations and carries MS
stock in amounts warranted by his financial re-
,ources will reap the benefits Of this present
reriod Of growing peace and expanding pros
perity.
The outlook in the money market favoIs higher
rates This however should not disconcert the
stock market. for no approach % stringency is
possible with enormous foreign credits 10 draw
upor Gold imports Will probably begin this
week as money market conditions now warrant
q beginning Of the movement Owing 20 pay
rnents on bond account. the surplus holdings OF
the banks have declined 10 figure which would
be startling were il not for the known strength
of financial conditions. Increased speculation in
stocks growing demand for money for crop
purposes and an enlarging inquiry from mer
camille sources additional factors in the
monetary situation. hut they are most encour-
aging factors for they represent the movement
~ money into the channels Of trade the spread
of confidence and enthusiasm in American in
dustries and American Institutions. If the local
banks losing money bee ause people wanted
20 hoard it. as in The disastrous times Of 1893 20
1896. stocks might We'll decline ard operators
grow Respondent
careful survey of the situation develops
nothing in favor Of lower prices. Everything Is
working toward the increased value Of securi-
les The time Will come when there will be a
halt: when intrinsic and market values will bal
ance. but as far as all indications low pon,
that time is far of The actual volume Of mer-
camille business last week. reflected through
clearing house returns. was a"4 per cent larger
than In the same week a year ago and about
- per cent better than in the corresponding
week OF prosperous 1892. The crops continue
promising exports OF merchandise are heavy.
railroad traffic is increasing the iron and steel
Industry IS booming. the United States Treas
ury is rich. the amount OF money in circulation
IL larger than in any preceding year in the his
cory Of the country. gold imports are impend-
ing. and individual. corporate and Government
credit is high With such a combination OF IA
vorable circumstances il is impossible TO believe
that securities values will not gradually reach A
higher level \ higher rate ion call money viii
doubtless cause weak spots III The market and
il may for time check bull enthusiasm. but
nine men out OF every ten in the Street believe
that the advance in money rates will exert bu;
a temporary influence upon speculation Specu-
lation has not run wild and the technical posi-
ton Of the market s. no; in favor % liquidation.
Speculation IS apparently in good condition TO
meet higher fnnncN rates