New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-06-27

THE WEEK IN WALL STREET.

The movement Of money into railroad mort
cage issues was the feature OF Wall Street ousl-
ness last week. People who believe IN preCe-
dents and base their stock market operations
upon the course Of railroad bonds shouiu lee'
satisfied in buying stocks at the current ieNe''
An active bond market usually foreshado"s an
active stock market, and higher prices TOT oorus
mean a corresponding appreciation IN s'ocAs'
The demand for bonds last week dountess re-
fected the movement of money that VIII loi'o"
the completion Of the Government loan hesoN-
o+ions and the disbursement Of Interest and
dividends incident to the beginning OF the ne"
fiscal year on July I. Many capitalists and IN
situations recently held their funds in check
pending the opening Of the Government loan
subscriptions in the hope Of having their oners
accepted. After the first subscriptions had been
received It was seen that the new bonds would
60 10 small investors throughout the country
and as a consequence idle funds again began to
move into the attractive mortgage issues Of
American railroads.
In the best informed and most conservative
banking circles the belief prevails that activity
in the bond market Is in its infancy. II Is log
ically argued tina; in these days 81 progress
money will not remain idle for any length of
time and that the vast amount Of funds to be
distributed on July will seek immediate rein
vestment and such reasoning is based upon the
fact that the country is richer and greater than
ever before in its history. Regarding the securi-
~ market as whole the conclusion must ne
reached that capital is confident, that there is
no imitation in values and that the tendency OF
prices is toward higher level. Judged by act
nal worth prices are not high. and from
speculative point Of view they are not danger
GUS because there Is absolutely nothing OF
threatening nature in the situation 10 impair
values or confidence. There is no uncertainty
over tariffs or monetary standards. Crop condi-
tons are good corporations financially
sound and ntegently managed. the Govern
ment and banks are substantially protected and
the countrys foreign trade is heavier than ever
before in the records Of the Nation The war
is not a disturbing factor. and It's promised
success will prove a stimulating influence in the
field Of speculation.
The wheat market suffered severe shock by
the collapse Of the Chicago speculation. but in
dications now point toward recovery. while the
expected decrease in shipments has not been
pronounced. In fact, exports continue remark
ably large. The prospects for the seasons
crops are excellent. and the demand from the
outside world by reason of two years Of def
cent yield involving the depletion Of reserves
and supplies should insure the American farmer
fair price for his product. OF course, there is
vet some uncertainty over the extent Of inhu-
ence yet TO he exerted by Mr.. Letters opera
tions but as his speculation collapsed before the
new crop had come upon the market. the situa-
ton is relieved of the possibility Of other ac-
cumuations that would tend to depress prices.
II does not appear probable that the money
market will come to the assistance of stock
market bears From current indications the
bond issue will not exer, any particular pressure
on money rates. and it is owing TO belief tC
this effect that some operators are beginning &c
accumulate stocks in expectation Of bull move
ment in July The recent reactionary tendency
in stocks has pr0ducei no noteworthy declines
In values, while inducing no liquidation Of i'm
portance Small long account. have in somt
cases been lquidated. but the bulk of the sell
ing has been for the short account, In periods
of declines when general conditions sound
careful spectators are likely 10 buy stock:
without informing the public Of their operations
and it is this class Of operators who generally
make the largest profits in the stock market
The course Of values last week irregular
with strength at the close.