New-York tribune., 1899-07-30
financial.
The Financial World.


had been trait noticeable for some time past
but on this day under aggressive buying
speculation broadened out. the general run OF
stocks became active and some that had been
long stasnant showed signs Of waking up
Previous to this waiting market. trying every
ones patience with its midsummer dullness.
much needed rain in the corn belt was the
signal for active bull operations, and as London
Is appearing a strong buyer In this market
the Street assumes that the motive power here
is to be found In the direction Of Mr.. Morgan
Whenever he is working the market he always
starts his London connections In the same direc-
tion
The bank statement met general expectations
It is clear that we are not likely to have any
very cheap money this fall at any time. The
demands from business have brought down the
reserves and the same conditions obtain In
Europe 1t is very possible that with harder
money the second class OF stocks will show the
greatest opportunities for proft-they do not
cost much to carry and yet will reap the benefit
Of active Industrial conditions. We might in
stance such issues as Missouri Pacific St Louis
&. So. Western preferred Southern preferred,
and certain common stocks In the Trust group
In the Industrial stocks very good buying OF
Sugar was noticed, but more attention was at
tracted by the rise in Tobacco and this was ac-
companied by rumors which probably have
foundation in truth that recent conflicting in
terests have become reconciled.
break in the Mailing stocks about the mid
die Of the week created an uneasy feeling.
When a per cent cumulative preferred stock
after a slow previous decline Of eighteen points,
instead Of rallying breaks eight more in one
and al NJ hat In ia
Of shock From the time OF listing the Street
has been treated to rosy reports as to what the
company was earning and the exceptionally
high prices to which the stocks were going IL
is not to be wondered at that the majority OF
PEOPLE are skeptical as to its future and
inclined to put 1t in the class with that
other per cent cumulative stock. Standard
Distilling & Distributing preferred whose
equivalent in new securities can be purchased
for 5000
The best bear statement that has been made
on the market lately. or perhaps it would be
better to say, the best conservative statement,
was given in the financial column OF the Even
ing Post" few days ago. Briefly the writer
pointed out that the present height Of the mar
ket was attained In expectation Of state OF
trade such as we now see It, therefore. II the
ditions not expected when the accumuations Of
these stocks were made This seems to be
sound view. The other side OF the argument
may be presented in precise form, such as was
given In this column in more general terms last
week First-The years crops promise to be
large enough to justify us in calling this year
a successful agricultural season, because al
though the wheat crop was short the shortage
pode hv nj
spring wheat acreage. II is clear that the out
turn OF corn and spring wheat could not have
been anticipated with any confidence until the
last part Of June and first Of July, and even
now we are not entirely secure against loss, but
all the indications are that the out-turn will be
extremely large From this it must foll9w that
stocks could not have been bought last spring
ir anticipation Of an agricultural outlook only
to be determined in midsummer. We have an
example Of this in the recent buying Of Atchi-
son preferred High as 1t seemed at co we find
a. number Of the wealthiest people in the coun-
try buying the stock now, purely because they
think the corn crop in Atchison territory will
be the greatest that ever was gathered. This
also applies to Burlington and Rock Island both
OF which are large corn-carrying roads Second
The expansion of general business has not re-
ness continues to enlarge and the prices of iron
and steel and various other metals are still ris-
ing. The latest instance Of this is the sudden
and large rise in the market price OF tin Now
IL business continues to increase over the cor
responding period Of last year II inevitably
follows that westbound traffic must be larger
than 1t was last year, and. therefore, the rail-
road earnings from this source must be larger
ia
have been severe check TO this westbound
business and both the eastbound and west
bound business would have fallen off. but as
there is no such failure in sight and the actual
movement Of grain eastward has been larger
this year than last and promises TO De SUN
larger, it follows that the business both west
bound and eastbound must be larger in the last
half of this year than It was in the last half
OF last year. This it will be seen Is the arsu-
ment for a fail bull market.
Much Is heard nowadays Of the development
OF the Pacific coast and just here we may as
we'll note that the gold production of the kion-
dixie will reach quite large proportions this year.
This means a. great deal for this section Of the
country and in addition they have good crops.
Attention has been called in this column to
what it meant to this country to have the far
East begin to "eat wheat bread" From
prominent business man Of Tacoma, Washing
ton we have confirmation that this consuming
power is a growing reality. and will spread 10
the people Of our new possessions. He says as
follows:
You know we have learned out there, In conn
parativey few years. the value Of the trade OF me
East 1t is only within the past six or eight years
that mills have been turning our own own
wheat into -four. Two three sailing vessels were
sent from Tacoma with cargoes OF flour Tor nina
and business men laughed at the Idea tnat Cnna ina
men could be educated 10 eat -four Besides they
said, 1t couldn't be delivered at China ports ch.Sp
enough to compete with rice What has oeeh tne
result? Cinnamon have not only been taught 70
eat -four but they buy II In such quantities tnat
o-iay four lines OF vessels are running from "a
ctfc ports with wheat products for the emma trace
Now, we believe that II Cinnamon can De taught
to eat wheat products the Filipinos can
II Ia needless to say that renewed actlvlty