New-York tribune., 1899-12-18
THE WEEK IN WALL STREET.


Wall street has been through period of emo
tionaI liquidation. Local and technical pressure
on the stock market has depressed securities
values, bat it has not reduced the actual value
Of investment issues. The decline has been
sharp but eventually quotations will return to
the level warranted by unprecedented business
conditions. A decline based on fear and manipu-
lation and not accompanied by a change In con-
ditons underlying values will not leave the mar
ket in position of permanent collapse. In the
present case Liquidation has run beyond the
bounds Of sense and reason, but it may be put
down as a certainty that men of wealth buy
stocks in such a movement. and that in the end
the bear element overreaches itself and in so
doing builds the foundation for a big advance
The fundamental features in the situation are
sOunder to-day than at any time this year. and
far stronger than they were at this time year
ago. when securities values were only about
per cent lower than they are at present.
Conditions in Wall Street are unnatural, and
they will therefore not last Gloom and pes
slmism have overshadowed the brilliant features
OF the country's business position. The country
Is not on the brink of financial. political or
commercial precipice; morbid sentiment is con-
fined to Wall Street alone. The bargain hunter
who is not influenced by passing inferences is
that his purchases Will soon offset the power
that the bear element exercises on stocks and
sentiment. The fact that London is bidding
strongly for gold is not legitimate excuse
fer selling well protected stocks If London
takes much gold from here. good equivalent
viii he given i'm return. and If local gold is sent
abroad TO ease the London monetary situation
the effect Will be reactionary upon this market,
ana. in consequence counterbalance the Injury
that spectators believe gold exports will work
u the local situation. London is supposed to
have scld a large amount of stocks and bonds
in the last few weeks. but the merchandise bal
ance in favor of this country is thought to be
still large enough to absorb a considerable
amount Of securities sales. The extensive wip-
ing out OF marginal accounts in the stock mar
ket has strengthened the position of the loan
market and the movement Of domestic ex-
changes suggests that the interior is about
ready TO send round amounts of money TO this
centre.
There is no good argument TO prove that
money will rule at the current level for a ma
terially longer period Of time. And there is no
reasonable excuse for the assertion that good
dividend paying railroad stocks are selling too
high. While money is temporarily high, the
tendency Of rates after the first Of the new year
should be toward lower figures Even at the
current rate Of 6 per cent, the average dividend
paying railroad stock is not at an abnormal
level. The present stock market movement is
based more on the vigorous operations of pow
erfu spectators than on considerations involv-
ing the return on investments. The market is
undergoing a big readjusment OF holdings
Capitalists may be willing to withhold support
for a time and values may therefore seek
lower level; but on the decline, just as noted
throughout the week. men Of means will be the
heaviest buyers Of stocks. When these inter
ests are ready TO start upward movement
they will have the support Of public operators
who have made money in their business this
year. and who may be willing to place their
surplus earnings in the Christmas bargains
which will probably rule throughout the current
month Low priced industrial and railroad Sc
curities are at an attractive level especially
the cheap anthracite stocks. Norfolk and West
ern Southern Pacific Southern Railway pre-
ferred Northern Pacific common, the Mexican
issues Federal Steel common, Linseed stocks.
Cotton Oil and United States Rubber. Commits
sion houses reported buying last week for their
best class Of customers.
The current situation is quite apty expressed
in the following remarks Of well known firm:
Everything seems 10 go by contraries TINS
year At this season we ought TO be importing
gold, but we have begun exporting IL. Money
ought 10 be returning from the Interior but II
sill goes thither. The proposed currency legls-
seon ought 10 be positive bull factor but II
Is not even spoken of in financial circles any
more than the fact that two and two make iour'
OO''on ought TO be going out in great quantities.
oat II is not The British soldiers in the Trans
sasl ought To have won some victory, but they
nave been licked every time" Gold exports DO
i'oS represent a change in the favorable trace
DaIahce any more than the decline IN STOCK
prices represent a change in conditions govern
''s the real value of securities.