The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-06-12
THE OUTLOOK FOR THE SUMNER.

prices made the waning interest Of the public
ia stock speculation. Undoubtedly, the hot
weather had some Encouraging effect, but
aside from that. tho host Of small operators.
who began buying early in the year and had
seen their paper profits vanish and even turn
into losses during the recent collapse, were
plainly ndisposel to repeat their ventures. The
profess onals were equally loath to continue
tho game at one nnother's expense, as they
must do. 50 long as the outsiders stay oW, and
they showed their willingness to take n long
holiday by resolving to close the Exchange on
the third as well us the fourth OF July. ms they
did on he Monday preceding Decoration Day.
noticeable animation was infused into the mar
ket on Thursday by the declaration Of tho Sugar
Refining and tho Atchison Preferred dividends,
and 10y the good annual report OF the Rock
Island Railroad Company. Rumors favorable
TO the two great city ri rect railroad companies,
% the Cor solIiatod Gas Company, and to the
Manhattan Elevated also put up the stocks 81
those &c mI al lee and the week closed chocrfuly.
The discussion which has been provoked BY
tho commencement Of gold exports and the
ingenious explanations which have boon put
forward TO account for it arc not crcdltahIo
10 the financial intelligence of Wall street
According to some of tho theorists. the ofil-
GERS OF the National city Bank had conspired
with certain great stock Operators to break
down the market by o number OF devices. OF
which the export Of gold ts only ono In fur
therance OF thor ncfarious scheme, 1t Is said
that tho conspirators flrst engineered the fail
are OF the Amagnmated Copper stock issue. at
loss to Themselves Of some millions OF dol
lars; next, that they cut down the price OF gas
and reduced the dividend OF tho Consolidated
Gas Company. also at heavy loss to themselves
IN order also to depress the stock OF that COM
pany: and. finally. that they began exporting
gold. when they might have bought bills OF
exchange much moro cheaply. Tho fact that
any possible gain that might lie made In this
manner out OF stocks. would fall far shor, OF
tho losses which would be suffered from tho
means alleged TO have been employed. seems
to have been entirely overlooked
Nor does 1t seem TO have occurred to anybody
that exports of gold from this country So far
from being abnormal aud injurious TRANSACT
tions. are as healthy an element OF our foreign
trade as are exports Of provisions. brendstuffs
and cotton. so that the failure to make them.
and not tho making of them should excite I'M
favorable comment. Our mines produced, last
year. gold to the value OF 05.OOO.OOO. Of which
we consumed only little more than SI.OOO.Ooo
In the ar,s, leaving sos 100000 to DO retained
In our stock on hand. In addition. We imported.
during the fiscal year ending June 30. 1903,
moro than SlOO.OOO.OOO net. from foreign
countries, bringing the total stock OF the coun-
try as reported on June l. 1893. up to S724OOO.-
OOO and on tho first day OF this month up to
SSG3. OoO.O 900. the greater part OF which is in
the Treasury and In bank vaults. That We
should. Of this immense mass export few
millions Ia evidently less surprising than that
we should not. 1t Is only because the banks.
relying upon the great accumulations OF
the metal that have been forced upon them BY
an unusual balance OF foreign trade in our IA
yor have expanded their loans to stock oper-
ators and thus stimulated the enormous rise In
stock quotations we have lately witnessed.
that the commencement OF a depicting process
suggests alarm. So far as legitimate commerce
Ia concerned. we can spare without inconven-
ienco. all the gold that will be taken from us.
and there will remain plenty. even for stock
specu alton. after $40. 100000 have been with
drawn from the banks Of this city alone.
The expectation OF gold. whether It be little
or much. may. therefore. be treated. and. in
deed, il treated. by all sensible people. as OF no
importance In forccastng the course OF the
stock market during the coming summer.
Nor does there appear to be any other factor
that requires to be taken into consideration
as likely to cause depression. While. as has
been said the enthusiasm OF mere spectators
has considerably subsidized. there still remains
body Of capitalists, with large sums OF
money. not borrowed from DaUES ana trust
companies. but belonging to them absolutely,
which they are seeking to invest In a safe and
profitable manner. These men have already
gathered into their strong boxes all the loose
stocks and bonds they can get the value OF
which has become fixed. and they are ready TO
take moro whenever they are offered. They
are paying high premiums for Government
per cent. bonds. for 81, and per cent. first
mortgage railroad bonds. and are buying
guaranteed and preference stocks at prices
which yield less than 4 per cont. per
mum on the money paid for them. They
are also carefully scrutinzinG the specula-
tive stocks and the new industrlals and will
buy them also 80 soon as they can feel assured
that they are safe investments They have
run up the price OF the best OF the older rail-
road stocks. such as New York Central. Penn
sylvania. Burlington and Quincy. st. Paul.
Rock Island and Northwest, until they yield
only per cent. per annum and loss, and they
are beginning to buy the newer stocks. like
Atchison referred. Northern Pacific pre-
ferred, Union Pacific preferred and Central
Pacific. which have regulations yet to make.
The withdrawal from the market OF the little
operators whose inconsiderate and indiscrim-
mate buying had carried prices far above the
safety point. will thus be compensated by the
incoming Of more solid. II less enthusiastic,
vent 1t are O! a political character and these
are not likely to have much effect. The Presi-
Dental candidate Of tho democratic party In
1909 still insists. indeed. that the party must
adhere to the free silver proposition which
caused its defeat that year. so that We may
have to fight over again next year tho bat
tie which was fought then. It ia also
true that a number OF respectable citi-
IONS. backed BY the Secretary OF tho
Treasury. declare that tho country's financial
system Is unsound. and needs a thorough
reformation TO make itsafe. There is. besides,
the hostility to massing capital under tho con-
troll O; large corporations. miscalled trusts. 4"
and demand for legislation to prevent it, In
this State. too. We have the new Franchise Tax
act 10 deal with. tho exact scope and effect OF
which havo yet TO be ascertaned, but which
are sure to he more or less detrimental to the
profits OF q number Of companies whose stock 9
are tavortcs with spectators. None Of these
things. however. is cause for immediate alarm.
Whatever tho fanatical Democratic silverites
may soy they are far from constituting hare