New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-02-06
THE WEEKS OPERATIONS IN STOCKS

The relation between the surplus reserve and
liability account Of the Associated Banks is ia
vorable FOR q continuation Of bull speculation in
the stock market. Notwithstanding a heavy in
crease I'm loans last week surplus reserve is well
above the reserve al this time year ago, ana
for the week shows decrease OF less thah
50 600 900 in the face Of heavy expansion in
loans and deposits. The actual movement or
money in the week was IN favor OF this centre.
as reflected in an increase IN cash holdings
while the gain of-over S15.0OO000 In loans could
not be found IN the routine operations of the
money market. Special transactions which have
no actual bearing upon the actual position OF
the movement Of money responsible for
the heavy addition TO the loan account. and
chief among these transactions was the credit
operations OF foreign banking houses In connec-
ton with the selling Of American securities for
European holders Then the financing Of sew
eral of the new industrial corporations doubtless
played a part in increasing the outstanding
number OF loans. As far as the stock market
is concerned. the liquidation on loans has eX-
ceeded the borrowing demand, while or the ad-
vances recently made on sterling exchange at
least 100000 was paid off in the week. The
selling Of securities by foreign interests has
been, heavier than generally known, and the ar
riyalfof these securities from abroad at the end
Of ta,e week. together with the arrivals TO come
thisN week involve the use Of a considerable
slrmAof, money that naturally is reflected in an
incvease. in bank loans which in turn may be
reflected in a temporarily more active money
market. If
An interesting and highly important featuB
~ the current international movement OF Sc
curities Ms contained in the announcement that
m addit ION TO the purchases made IN TINS mar
kat of our securities from foreign hold-
ers thel e have been moderate purchases ny
American, institutions Of foreign securities, such
as the ne ~ Prussian loan of l23.ObWp marks
and the Imperial German loan Of '0W1VJ
marks That this is an indication OF the
strength or financial conditions IN THIS country
no one can doubt. a country that can ABSORB
it's own securities and become a subscriber 10
foreign loansI while having more money thah II
can conveniently use. is indeed prosperous ana
~ this to some people is not a satisfactory IN
dication OF oIT wealth ii is only necessary III
order to be c >nvinced. to examine the volume
of business as measured through pahK cIedI
ings and railro al earnings. All OF the factors
that give strer 9Th and stapln'y 10 Hi i,
activity contnue in full force. In the business
world prices are slowly rising in response 70 an
increasing demand for consumption. Instances
where speculation has entered the Industrial
markets are the reception at present. and in all
DEPARTMENTS Of l. ade and industry the Leading
interests worl ing against an eAcesslNc iiSc
I'm prices endeaVOring to MAINTAIN genuine
relation between r lsng values and business I'M
prUyeme1{ function Of the stock market is to
record the business progress OF the country Il
very often happens that advancing values run
ahead of business Improvement, and as a con
sequence a pause iIAactvity ana setback IN
prices take place. 1T can hardly be saId
that In the present market prices nave
actuaI,- gone ahead Of business Improvement,
especially when the investment yield OF secuTl-
ties In -elation to the money market Is taken
into consideration. 1t is evident. however thal
in some, Instances speculation has been eXtraNa,
CANT and presents features that may If allowed
10 continue. end in Generalization ana prove
most disastrous TO tie best interests or le mar
ket and to the great number OF public operators
engaged In buying the stocks Tor an ADVANCE
In order to guard against the eVli or lnhated
speculasiOn the larger interests nave wisely
cautioned the public against the danger Of over
trading. while taking such steps as are pest
CALCULATED 10 clsck rampant specuauoh' Hne
that which took place in the closing week IN
January In this work OF preserving the health
OF the market. assistance has been anorded by
the fear that t!Sa Peace Treaty may iaii TO Sc
cure the necessary two-thlrds vote by the VIII
ingness OF many operators 10 reduce their hold
ings and by the heavy liquidation or Foreign
held American securities. OF course the pTdc-
,ical cOneeOueuceB OF refusal to ratfy the
Peace Treaty CzlrrOt be considered seriously as
q nermanert influence upon the actual worth Of
securities but the effect upon sentiment OF an
adverse action will, for a time, be unfavorable
and doubtless lead TO temporary quotations for
stocks "
materially strengthened by the reaction Of the
last week and any further setback viii place
the market In condition from which an imrne-
diate inward movement may be looked for And
81 the Peace Treaty is ratified an active and
Using narkr will in all probability follow.
The business situation offers no announcement
for the bears, and IL will be some time before
they can reasonably begin TO grow uneasy over
the CROPS 1t may be well for the bears to learn
at this early date that the winter wheat crop
was planted under favorable conditions, and
that in the grain sections OF the country dam
age 10 winter wheat by periods OF thawing and
freezing has been aVerted by generally well sus
tanned cold weather. The reaction in prices has
carried values in many stocks from three TO SIX
noints under the highest figures reached in
January Some OF the more active stocks with
their high quotations and Saturdays closing
Ill ~fratrf gf