New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-09-05
PONDS
-IIIgr- Low. s.p,.c Aus27 Ch's's Sales
TIE, WEEKS OPERATIONS IN STOCKS.

The fact that there has been no important set
back to prices since the current bull market be-
gan suggests to minds the possibility OF
lower values before a materially higher level is
attained There is, OF course. nothing in bust
ness conditions warranting a decline, and the
technical position Of speculation IS not danger
GUS on weakened by overtradng and small ac-
counts The fear OF higher money rates caused
a loss in values last Monday and heavy
shrinkage III the volume of commission house
business. in consequence OF which the market
developed great irreguarity and passed into
the hands Of profcs sional traders far as trad
ing was concerned Dulness, irrcsularity and
fr,ner rate for money were the surface mol
cations that led some people 70 believe that
Period Of lower quotations might he looked Tor
before a resumption Of active bull speculation,
while the failure Of the market 10 register I'M
por.ant declines Cor many weeks Influenced
other Observers In favor Of the theory that a
decline must come because PRICES were too hiSh
and holdings more generally distributed among
the weaker interests
Indications of higher money markel should
be followed by caution in stock market opera
tions- but at a time like this when the out
look does not favor strngency and when mate
rial conditions are so promising. there can be
no legitimate excuse for expecting heavy de-
cline In values, or reason for investors and sub
stan,ial spectators sell their holdings
Higher prices must ultimately prevail. Belief
in an Ultimate higher range Of values induces
good buying on every reaction and inspires
confidence among holders 10 retain their secu-
rifles possession. A good-sized reaction would
not be unwelcorpe TO the leading bulls In Wall
Street, while further shaking out Of weak
counts would strengthen the market Neither OF
these factors. however. would affect the general
tendency Of prices reflect setback in bust
ness conditions Money market prospects favor
higher rates for money for the rest OF the year,
and sudden changes in rates can be ad-
vantageousy used 20 depress stock market
values the small marginal trader should not
enter into extravagant speculation the theory
that prices must advance without interruption
because all the underlying factors moving
in the direction Of business growth and pros
perity.
Announcement Of gold engaged abroad for ex-
port TO this country served 10 sustain the market
last week, while dsspating the fear of stringent
money And an advance In London discounts
at the end OF the week encouraged the belief
that the demand for gold would soon become
urgent The current supply Of commercial bills
assures declining exchange rates; and, in add
tion, our credit abroad Is increasing by renewed
purchases Of American securities for foreign &C
count Indications last week pointed toward an
increasing foreign demand for good dividend
paying securities. buying far exceeding selling
in the week. and cable reports showing growing
interest on the London Exchange for "Ameri-
cans" Locally. an element Of support fur
nished by buying orders on a scale down. money
operators putting in bids at prices representing
the conservative idea Of a healthfu reaction. 1t
Is believed that when the market is ripe for an
other pronounced upward swing the low-priced
industrials and railroad stocks will come in for
q larger share Of speculative attention and
that before the end OF the year the general
level Of values will be we'll above that now cur
rent. For the present the money market should
govern stock operations. Last weeks bank
statement showed a further heavy reduction
in cash and surplus holdings.