New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-06-05
THE WEEKS OPERATIONS IN STOCKS.

THE WEEKS OPERATIONS IN STOCKS
Conditions governing the actual worth OF Sc
curtties are in favor Of broader and hlgher
stock market Technical market conditions are
also IN favor of advancing values, ana the
course of prices at the close Of the week ap-
reared to indicate that the period OF decinlhs
prices was at an end On Wednesday sentiment
and prices we're depressed beyond the limits OF
sense and reason. On Friday and SATURDAY
conplete change, both In sentiment ana prices
took place despite the fact that SlOOOcOV goio
was engaged for export. Wall Street always
receives a chill when gold exports are men
toned but in the present case the ADVANCING
tendency Of sterling exchange warned the specu-
lative community several weeks ago that goio
exports were not improbable. the movement
was therefore discounted, and when the ac'uai
engagement was announced the market began
% advance. Gold exports at this time are not
universe factors. Owing to increased imports OF
merchandise and the heavy sales Of American
securities held abroad in the last year 'his
countrvs credit balance IN Europe has been
very much reduced and. as consequence s'er-
ling loans or gold exports may for short time
be made But in the autumn exchange VIII
again run in favor Of the United STATES anu
ubatever gold goes out now Will come BACK
later on. -
The strength OF this country is rejected III
its ability 10 absorb vast amounts OF securi''es
sold for the foreign account And this seihhs
by Europe of investment holdings in the last
wear has further strengthened the hnanclai coii
ditions here by reducing the amount OF interest
and dividend payments 10 be PAID 10 EUROPE
II Is not likely however. that Europe VIII re-
main bare Of American investment securities
for any length OF time, for the advantages OF
American railroad stocks and bonds III COM
parison with foreign securities regarding III
,,ss,roant Weld are TOO well appreciated abroad
10 be lost sight of. Recently arbitrage houses
have been heavy buyers in this market but
the greater part of these purchases represent
speculative dealings which cannot be counted
unon as permanent. There has been. however.
some INQUIRY for investment account as re-
fected in actual shipments Of stocks and ponos
in the last few weeks Selling in this marker
for the short account has strengthened the po-
stion Of the bulls. and it is believed in many
well-informed circles that the decline on
Wednesday marked the limit Of the bear move
ment An active bull movement may not ne-
velop at once for II will doubtless require con-
siderable time TO convince the public That the
bear campaign is at an end: but unless the
general situation should undergo a serious
change the tendency OF prices ousul 10 pe to"
ard higher level.
The condition OF the country's industries Is
well reflected in the trade report of commercial
failures in April and May. April failures were
the smallest ever reported to that time. whit
May failures were even fewer. If further evi
dence of industrial activity is required II II
only necessary TO analyze the reports OF rail
road earnings and bank cearings The per
sjstent selling of stocks on crop uncertantie.
and unfounded adverse summaries Of crop con
ditons has apparently come to an end White
wheat has been damaged but the crol
promises TO Offset the loss on wheat. Cond
tions in the spring wheat belt are favorab BILE
and as far be judged at present the yielC
will be up TO the average of ordinary years
The receipts OF wheat at Western points las
week were only slightly under those at th'
same time last year. when prices were higher
and the foreign demand was greater. The
farmers evidently do not expect short crops
this year. Money is growing easier and cap
ital continues 70 move into bonds Industrial
stocks whose dividend power has yet TO bt
tested have reached level at which conserva
tive operators are not afraid 10 buy them, while
the tendency In banking circles TO check the
fotation OF new issues has served TO lessen the
chances Of imitation and crazy speculation.
1t would seem as If stocks bought ar the cur
rent level on judicious margins would show ma
terial profits before the summer is over. At
tractive railroad issues Of the ntermediat,
class-sueh as Southern Railway preferred
Norfolk and Western preferred Louisville anC
Nashville and Union Pacific issues-are worth
the attention of investors and Spectators. II
the cheaper grade of issues Kansas and Texa
preferred has many arguments in its favor, al
have also Mexican Central st. Louis and Sal
Francisco. Ontario and Western. and a score o
others. The higher-pr stocks are gradual,
going out Of the Street and the speculation O
the future Will centre upon the new securitie
OF hrst-class industrial concerns and the lower
priced railroad issues.