New-York tribune., 1899-10-02

THE WEEK IN WALL STREET.
Money market conditions controlled the stock
market last week Rates for call funds went
to the highest price Of the year. but borrowers
had no trouble in securing accommodation, as
long as they had suitable collateral 70 offer.
There was no real strngency in money. And
# is not likely that there Will be any severe
stringency in the money market this year.
There is enough money 10 meet all the egit
mate requirements Of the situation. Small
traders on light margins and big traders who
are carrying more stocks than they safely
handle are the only people who are suffering
from present high rates for money. Many loans
have been called Many more loans will
he called before the banks complete their
current movement OF loan contraction. In the
four business days last week loans decreased
over s70OOOOO. In the following week there
vas decline OF over S170OOO00 In the next
two weeks there ought TO be a decrease In loans
OF S20O0OO0O The situation demands drastic
loan contraction. Money will not begin to
turn 70 the city for several weeks 10 come
Treasury Withdrawals continue heavy and gold
imports alone cannot Offset the loss in cash
that is due 70 interior shipments and payments
by the banks on customs and internal revenue
account.
Gold imports. however. have begun. and IN
connection with loan contraction they Will
strengthen the position of bank reserves 10 a
material and considerable extent. Gold imports
have begun a. so-cal1ed special transactions.
Cold exports began last June special transac-
tions. Gold imports we're foreshadowed in The
Tribune alone two weeks ago. and further en-
eagements Of the metal herewith predicted.
Europe naturally does not care TO see move
vent gold exports to the United States II tho
precious metal is actually needed here? II Eu-
rope controlled the international exchange mar
ket gold imports could be held In check. Europe,
however. does not control the market and at
the current rate Of business growth In this
market Europe never will control 1t. The coun-
try that does not control the international ex-
change market cannot govern the movement
OF gold. The United States did not rule the for
eign exchange market IN 1893. and while It could
not afford 10 spare the metal gold went out
in enormous amounts. The resources of the
exchange market apparently have been ex-
hausted and the only alternative Is the impor-
tation Of gold War in the Transvaal will nor
check gold shipments to this country II gold Is
actually needed here
The local banks could 20 through the fell sea-
son without the assistance Of gold but they
certainly would he materially benefited BY a
considerable movement from Europe Money
is generally a controlling factor in the stock
market. but II money continues 10 incite liqui-
dation there should be no uneasness on the
part Of we'll protected holders Of stocks II IS
not time 10 take loss In the stock market
Conditions underlying the real value Of stocks
are far too promising 10 induce the sale of
holdings that are we'll secured. Weak holders
market uncertainty. but that is their misfort-
une. They bite on more than they can chew"
The stock market however. could not well get
along without them. for they are the source Of
supply for weighter speculators whose profits
come from petty operators indiscretlons This
class Of trader-the weak trader-is rapidly be-
ing eliminated from the current market The
weak holder is selling and the strong holder Is
buying On every decline stocks find ready
buyers This Is point that some people who
do not need 70 sell but who do sell ought 10
bear IN mind Apparently they believe that
when stocks decline there no buyers Every
stock sold is in turn bought. and the fact that
there buyers proves that the stocks sold
have some merit Even Bay State Gas finds
buyers at 50 a share
Trade reports suggest that good stocks are
purchase. and that the cheap stocks can he held
with the reasonable expectation of selling high
before present business prosperity runs
its course The cheap stocks are rapidlv be-
coming valuable Equities in the cheap stocks
should he carefully watched Earnings that
make increased dividends possible for the stand
ard shares make dividend possibilities for the
low priced issues The big roads have not
monopoly OF business expansion. Small roads
are making returns equally as favorable. and
the time must come when market values will
reflect this improvement. Stocks such as On
tario and Western the Mexican Railroad issues
Chicago Great Western. Chesapeake and Ohio
st Louis and San Francisco American Tinseed
and Southern Pacific VIII sell higher Manipu-
lation IS aggressive in Sugar Refining Amerl-
can Tobacco. Tennessee Coal and Iron and
other high priced issues Of the speculative class
They can we'll be let alone. Railroad earnings
FOR the first three weeks I'm September have
been enormous. Bank clearings have broken
records. Grain receipts at Western points have
been heavier than ever before and exports OF
breadstuns and merchandise continue 10 exceed
imports by substantial figures Industrial ex-
pansion will make stock values