New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-05-23
THE WEEKS OPERATIONS IN STOCKS.

preceding week loo4o'"V
THE WEEKS OPERATIONS IN STOCKS.
Wall Street had a number Of important and
highly interesting subjects for discussion last
week, every one Of which was an argument TOT
higher prices in securities. Their effectiveness.
however, was not permitted to operate TO any
great extent upon values, owing to the unwilling
ness Of important interests and pubic buyers
to come into the market until something DELL
mite developed in the progress of the war with
Spain. The extraordinary showing OF the coun-
try's foreign trade for April "a month when ex-
ports are not expected to be heavy and for the
ten months Of the fiscal year. a further reduc-
ton in money rates, splendid railroad earnings
and satisfactory crop reports. and an increased
volume of business as reflected through bank
clearings were factors which furnished food for
thought and talk in Wall Street and encouraged
holders of American investment securities TO
place greater faith and confidence IN the actual
worth Of their possessions. That an active stock
market did not accompany the consideration OF
such factors must be placed to the credit OF the
overshadowing influence Of war uncertainty.
Wall Street Is waiting for q decisive engage
ment between the American and Spanish meets
In West Indian waters. Following that expected
meeting holders Of securities should be prepared
to witness some interesting movement IN the
arena Of speculation. The belief IN the superior
ity Of the American fleets Is too strong TO ad-
NIT of serious doubt concerning the outcome or
q battle conducted upon the level OF legitimate
warfare but the fact that accidents OFTEN
happen in war inspires sentiment OF caution
in the speculative mind and induces operators
in stocks to defer their transactions until re-
suits have been accomplished. 1t Is CONCEDED
that any reverse to the American ships would
lead to a sharp break in securities prices But
It is also conceded that on the decline there
will be heavy buying orders. and that any set
back to values will be for short time only
II. however, a brilliant victory is gained It is
believed that prices will be carried very much
above those now current despite the fact that
quotations are from eight to fifteen points higher
than a month ago.
Traders who sell stocks short realize the weak
ness Of their position. and show no disposition
TO make more than temporary excursions on the
short side OF the market. Throughout the week
the underlying tendency Of values was toward
a higher level and while the market was wholly
professional there was no important lquida-
ton Of long stock and there was no indication
that substantial interests were willing to let the
market reach a lower level. Technically con-
ditions are such that concerted action among
the larger speculative interests would cause a
decline of some extent on any unfavorable news
owing to the fact that there many small ac-
counts In brokers' Offices and wide distribution
OF stocks among public holders These accounts.
however, are held by people who are confident
Of the future Of values and 1t is not the purpose
Of such holders to sell at a loss unless they arc
absolutely compelled to do so by the superior
strength OF powerful Spectators through the
medium Of an unexpected shock to confidence or
a. sudden change in money rates Manipulation
can accomplish great results In the stock mar
ket, but even manipulation requires, as rule
some basis Of facts.
The market is held back by caution based
upon the possibility OF a setback TO the Ameri-
can squadron. But the majority Of people have
faith in the American feet and therefore pre-
fer TO remain long OF stocks. Traders OF small
calbre have been working for a reaction. and
their success is measured by fractions. 1t may
be recalled that in the bull market last sum
mer traders worked on the same lines. only 70
be defeated by the big boom in September; also
that in no period of the markets history have
the reactionists been successful when the public
furnished the lever that shaped the course Of
values II there any evils In the situation
a fve-po.nt decline would discount them. Oper
ators In stocks who cannot afford 70 stand a
five-point break ought never 10 turn their
thoughts to Wall Street. Five per cent margins
appear safe In an advancing market. but IT Is
unfortunate that the rules OF the Stock Ex-
change do not compel brokers to make 10 per
cent the minimum.
The supply of stocks il small, despite the re-
cent advance and the wider distribution OF hold
ings 1, this proves anything it is that in the
minds OF holders home conditions are favorable
enough to Offset unfavorabie results that might
develop in the conduct Of the war. At present
there are no indications Of breakers ahead. If
unpleasant developments are brewing the money
market will reflect the first signs OF a change.
and stock market operators should then begin
with all dispatch 10 adjust their affairs on lines
suggested by the action OF the money market
and Of the conservative element in the banking
community. Investors have little reason for
worrying about the future. The crop prospects,
balance Of trade. bank clearings and railroad
earnings are the substantial factors in the stu
alton that the war with Spain cannot upset