New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-11-06

THE WEEKS OPERATIONS IN STOCKS

'FX-intfrest.
THE WEEKS OPERATIONS IN SlOCNS'
transactions in last weeks securities markets
were moderately heavy with the price move
mont generally in favor Of higher qu"'auo"S'
II il had not been for the restraining influence "i
the money market an uninterrupted advance d"
a growing volume Of business would nave TAX"
place The market wants to advance hNe'Y
feature I'm the situation. save the money mar
10. ,rarrarte aggressive bull speculation. ana
~, ec,aral DAYS last week the tendency 20 cut
loose from money market factors was sUons
The position II the money market does not en-
courage the belief that stock values WI" 20
lover hut il suggests that postponement OF
an active bull market would serve the pest III
,erests ., the greater number of people con
cerned in market operations. Higher prices are
onlv q matter Of time. and the people who can
nov, afford 10 buy outright or on large margins
will no; find It necessary to worry over money
market factors.
When bank reserves show a small percentage
,s,oy. legal requirements light marginal &C
counts in stocks are not safe Money marNe'
Yates have been manipulated. and they may he
r,aninulatod again. and manipulation OF this
character is likely to wipe out small speculative
accounts Legitimate advances in money rates
nav force selling Of stocks. and In this event the
email trader suffers Substantial traders sho"
M hesitation in buying now. because they are
well protected against passing fluctuations anu
they logically argue that stock values must az
vance to a hieher level on heavy pubic buying
4,st as soon as the lendabe supply or money al
this centre becomes larger The flow or money
- this centre is not as yet as marked as re-
Gently expected but the current rates Tor money
indicate that bankers see relief ahead. nix"
rates for money have restrained bull enthusiasm
and as a consequence market values nave "o'
discounted or even measured the Improvements
rresont and prospective in the intrinsic worth Oh
securities The technical position Of the market
Is strong. Many current buyers take STOCKS
outright. Marginal accounts are held by people
who can supply additional margin II required
All the market IS waiting FOR is more money
and when money begins 10 move TINS way the
public will rush in TO buy stocks. With public
buying values 90 up
II stock values were high. and II they hao dis-
,on,,ea nrosperitv. the argument that prices
must advance would not be justified Few stocks
are selling above actual worth. Take some OF
,ha cbean issues for instance Southern Pacific
showed a gain in net earnings for the first quar-
for q, the wear Of 81. 19e575. at which rate the
earnings Will amount 10 : per cent or more on
tho stock. Is Southern Pacific at 80 dear?
Norfolk and Western for the quarter showed
surplus equivalent II about per cent on the
common stock Are the preferred at Il ano the
common AT - dear? Union Pacific for Septem-
her returned a gain in net earnings Of S-oN'4-o'
Ave Union Faclhc common at A. and the pre-
ferred az - dear The shorts were punished in
Brooklvn Rapid Transit last week. Prospects
indicate that similar medicine viii be given 10
the shorts in other stocks In last weeks mar
ket a growing tendency to buy the cheap or low
priced stocks was reflected in the heavy dealings
IN Southern Pacific Standard Rope and Twine'
Missouri Pacific Norfolk and Western Wabash
preferred. ontario and Western and other at
tractive issues Transactions In the stocks
named were heavy especially in Southern Pa
,iAc and STANDARD Rope and Irvine. The cheap
stocks represent companies that are making
money and which In many cases Wil pay diNi-
dends on their common shares in another year
and increased returns on their preferred
1t should be- borne In mind that substantial in
.erests represent the bull pools In this market
When substantial interests combine their re
sources in the stock market prices are pretty
sure 10 advance. although for good reasons the
controlling interests may not undertake aggres
s,ve ooerations as soon as petty speculator
would like Strong combinations Of rich mel
are big holders Of stocks They began to bu!
STOCKS
through buying Believing in higher prices the,
bought heavily in the decline early in the fall
and the chances are that they will not sell on
until prices have reached a very much highe
level than that now current. The bull pools il
this market are far stronger than the pools @
ordinary times They are not made up Of pro
fessional traders but Of men who have millions
behind them Outside Of the technical strength
OF speculation. factors governing the real WORT
Of stocks and bonds are stronger than ever be
fore on record When one considers the techni
cal position - the market and the business
position II the country one may find reason To-
caution for caution is always wise I'm marke
operations, but It certainly viii hoe dificut 4
discover any reason for pessimsm or a belle
that values Will decline beyond the limits II
temporary reaction. The speculative spirit Il
growing. and II II can only be held in check unit
money becomes more abundant at this centr,
there will be heavy advances In the marke
later.
bear operations in tO-days market and sellin,
by frightened marginal traders The fact tina
the bank reserve Is slightly below the lcga
limit cannot be taken TO indicate current coudi
tons Money rates at the close OF the week re-
hected rising averages. and a sharp advance II
Chicago exchange on New York forcshadowed
change in the movement 81 currency IN favor o
this centre.
BANK EXCHANGES AND $40. SALES
The bank exchanges OF the New-York Clearin
House and the stocks sold al the New-York stoc
Exchange last week and for the same week Of II
preceding two years compare follows:
e..A.s. ~ SO q SIS. tx - g