New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-09-18
THE WEEK IN WALL STREET

THE WEEk IN w ALL
e-.,,,o,,,.o foundation incident to money mar
bot conditions was the chief feature !" 'a''
n.ook.s securities dealings. The oppor'uA'''
90 mako profit on the short side or the MAJ NV
was readily seized upon by the greater "u'"DN'
e professional traders, and In consequence -"
market was under pressure the greater par 20
tho week When bank reserves run close ~ wv
-, ,,,,,,, loans must be contracted. The con-
traction Of loans involves the TRACER WHO
.,.tro s,ocl<s on borrowed money, and in order
20 reduce their loan accounts the oalN9 q"
torcod 70 call the loans that carry the STOCKS OF
,..i,,o," onerators The hardships OF me
-. ,oore,, market are confined 10 the specu-
,.or IN stocks In the banking community the
,,,onotorv situation is not considered serious
nor &c q in such a position as TO hamper the
Cow If money into legitimate trade circles
High rates for money reflect prosperity. Pros
,oritv is reflected in the organization ana con-
bination Of SO many industrial concerns IN 'he
last eight months. Prosperity Is reflected IN 'he
increase of industrial securities In the genera
distribution Of money throughout the country
IN the demands upon the local banks 1or Gus
toms and internal revenue payments Inc very
fact that the banks have been Wiling ana aple
TO care for large speculative interests lnCIudihs
stock market operations and the ohhgauons OF
the new industrial combinations Indicates soho
conditions among the financial institutions
decrease in surplus reserve is no unfaVorapIe oe-
velopnent in times OF prosperity II the reserve
goes dangerously near the legal limit as at
osort tbere need be no fear uneasiness
Reserves that are depleted by fear ana business
o.nression and gold exports due 10 fear on the
mart Of other nations in the staollty OF our
financial conditions. far different from re-
cd owing
uand for money IN the great channels OF trade
The ability OF the Treasury to draw money
from the banks in excess Of its payments Is
further evidence Of the wealth Of the Nation
II is unfortunate however. that system Is
not in use by which 1t would be unnecessary 10
lock up so much money in the Treasury when
II might he prohtably employed In the country's
industrial circles.
There Is however plenty OF money in the
country and the supply Is constantly ncreas-
Ing through receipts OF gold from Australia
and the Klondke. and from local production. In
addition credits abroad are constantly piling
up owing to the enormous volume Of exports OF
merchandise in excess Of imports and It is more
than probable that gold imports from Europe
will begin inside Of three weeks. 1t is ridicu-
lous TO worry over the monetary situation. AS
far as the country in general Is concerned the
situation has never been better. The immediate
influence Of local monetary conditions upon
stocks may lead some traders 10 believe that the
bear element is in control Of speculation. and
that prices are about TO suffer a long period Of
decline. The bears are in control on the surface
only Bull interests are strengthening their
own position every day by the apparent vic
torious march Of the bears. Stocks passing
from weak hands to strong hands. The small
accounts are being eliminated and the short in
terest is expanding. short interest with
stocks in the hands Of substantial capitalists
furnishes a lever that always lifts the market.
Bear success will end in bear traps that will
squeeze the blind followers Of the leading bear
traders. The shrewd bears Will be on the long
side when the smaller bears paying for their
experience.
ON the decline last week good buyers were &C
tive in the market Investors were in the mar
ket taking stocks Of the ST. Paul class and the
cheaper issues. that are getting nearer to divi-
dends every day. The more important Wall Street
interests are in the market for a long pull. They
appreciate the value Of actual trade conditions
as future factors on securities prices and they
believe that these conditions must assert them
selves in a telling manner at no remote period
All good stocks in demand from a rich
class of buyers The anthracite coal stocks are
we'll held because the coal trade has never been
in better condition. Stocks such as Louisville
and Nashville. Union Pacific preferred. North
ern Pacific preferred Norfolk and Western pre-
ferred. Atchison preferred and Southern Railway
preferred are being absorbed because they are
good investments and destined to sell in the
neighborhood of par. The Mexican railroad
stocks are in demand because Mexico's indus
trial outlook is filled with promise. Mexican
roads are returning enormous earnings their
rates are high and well maintained and their
investment value is greater than their quoted
market level. The strength of the financial
and commercial situation is striking. In view
OF the prevailing conditions 1t is impossible to
recommend short sales in stocks for more than
turn. 1t is impossible TO be pessimistic over
the future. Transvaal troubles, liquidation OF
small speculative accounts. professional manip
ulation for a decline and high money rates can
not depress the intrinsic value Of securities that
represent great and growing railroad and in
dustrial corporations. 1t is not bear year.