The herald., 1898-12-30
FEATURES OF THE ADVANCE IN
PRICES OF STOCKS
SPOOL THREAD COMBINATION
New York Bank Deposits-Swiss
Opinion Of American Libraries.
Trust Companies Loans
OFFICE OF THE HERALD,


The recation of the security markets,
which great many people think about due,
md which is sure to come some day, has mot
yet Indicated its proximity. The week just
closed has exceeded all recent records in the
amount of shares which changed hands, says
the American Banker, and we have to- go
back to 1892 to find a parallel for it. In the
amount of its transactions in bonds, the
weeks record has no parallel in the history
of the exchange. The net change in prices
for the week range from l to point ad-
yances, with few inclines interspersed; and
the month of December promises to mark
for most shares the highest prices OF the
year. Most shares touched their lowest
quotations in March and April, that being
accounted for by the credit disturbance due
to the imminence of war with Spain. In al
most every case the advance which has been
scored has brought the prices of securities
much above the highest prices quoted last
year. 1t would not be correct to regard the
extraordinary advance in prices as due to
speculative manipulation. The revival Of
business, the increases in railway earnings
and the abundance of money offered for in
vestment have made large and legitimate in
creases in values possible. But while the
existing market seems to be still rooted in
realities, it would seem strange if a specula-
tive boom did not evolve at some time out
of conditions SO generally favorable for a
development of that sort. One of the note
worthy factors of the situation is the consid-
cradle buying of first class securities by the
banks. These institutions now have more
money on hand than they can readily in
vest, and the purchase of stocks and bonds
affords desirable temporary employment
for their surplus money. There is no land
boom anywhere to tempt the banks with
buying real estate mortgages, and while the
cattle trade has held out inducements which
may not materialize up to expectations, even
such investments have been made, on the
while, with prudence. The disposition to
proceed with caution is not alone in the in
dustrial situation. Though the steel and
several other trades are in a state of great
activity, the disposition it to permit the de-
nland to encroach on stocks in store instead
of adding to these. Nowhere do we find
business men SO confident Of the future as
to induce them to fill their warehouses in an
ticipation of more active consumption The
continued ease in our money markets, in the
face of the demand for money at costly rates
in all the foreign markets, is due largely to
the extraordinary course of our foreign
trade, which continues to erect immense
balances to our credit abroad. For the
twelve months of 1895 our exports exceeded
the imports by S23 3,OOO, 900; during 1896 the
excess was 1924, ,000,O during 1897 S357,
10000 and for eleven months of 1898 it is
over $500, 0,0O0 600! This, OF course, cannot so
r. 4
nent one. These great balances are largely
due to the scarcity of food abroad, and our
own abundance enabling us to sell our ag-
ricultural products in immense quantities at
famine prices. The stringency in Germany
and France may at any moment result in
such fall of merchandise prices as to inter-
fere with the ease with which, we are now
selling manufactured goods abroad, while
abundant harvests will surely deprive us
OF that advantage which recent seasons have
afforded us. For the time being we are in
the situation of creditor nation, loaner
Of money abroad instead of borrower.