New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-11-20
THE WEEKS OPERATIONS IN STOCKS.

THE WEEKS OPERATIONS IN SToChS
The turning point in the money market si'ua-
fIon was witnessed last week. II was cnalee
that means increased supplies OF money at thls
centre and in consequence, higher prices lor
securities An abundance OF money does hol
-acassarilv innply in all cases that stock values
will move higher. for there may be plethora
of money, with speculative and business conoi-
tons opposed TO an advance in securities values
There have been times when market quotations
have gradually worked lower. despite the faSt
that money had ruled at 11aq2 per cent. Con-
.,derations OF the causes responsible TOT
.carcitv or plethora OF lendable funds must be
fndulged in in discussing the relation between
the money market and the stock market IL Tue
fall period OF tight money had been que 10
..,drav,aI Of funds from the channels Of trade
incident TO business depression and lack OF con-
1dence in the financial and political situation
stock values would have registered decline
that would still be in force And II money
ruled at per cent because there was no ue-
noand for It in business centres the STOCK mar
bet would not have shown any material buoy
ancy.
Stocks did not go to pieces in the period Of
stringency because the causes contributing 10
that stringency involved factors that ADDED act
nal worth TO securities values. Speculative de-
clines were brought about, but there was no
investment liquidation The heavy demands roT
crop movement purposes are over ana interior
banks will now begin to build up their depleted
balances at this centre. Interior exchange on
New-York is rising and within the next thirty
DAYS there should be big movement OF money
10 this city. The Withdrawals Of money from
the channels Of trade on Treasury account Will
be offset in a measure by the redemption OF
Government bonds that is now going on. the
full effect of the Governments offer TO buy
bonds upon sentiment and prices will develop
slowly. It is an action that will be better ap-
preciated at a distance. The fact that the Gov
eminent is rich enough to buy up $25OO0OOo OF
bonds at time when its expenditures are enor-
NOUS denotes a prosperous country and pros
porous Treasury. Realizing the strength Of
conditions reflected in the Governments offer
well known operator in stocks said last week
when asked why he was bull: Il do not want
10 fight seventy millions Of people with S290,-
100000 In the Treasury" This Is a statement
that pessimists in Wall Street will do we'll 10
follow Stocks are not sale, and they have
not, except in a few cases, measured business
Improvement, present and prospective.
Treasury help comes at a time when the
money market begins to show Improvement
through the ordinary channels of trade. If the
upon securities values should be material And
3f the full amount is not offered for redemption,
the effect should be favorable on stock values,
;nasmuch 1t will show that there is no real
scarcity Of funds. and that enough money is re-
turning to New-York to prevent further difficult
ties IN bank reserve holdings. Foreign exchange
declined early in the week. and advanced at the
close AS to gold imports. the situation is COM
plicated by the South African war, which natu-
rally induces London to keep as tight a grip
upon its gold supply as it possibly can. At the
same time. however. London discounts have not
responded materially TO the advance in sterling
here: the banking community in London ap-
pears satisfied that the Transvaal trouble will
not run on for any length of time, and in the
last week foreigners have been heavy buyers
Of American securities the weeks purchases
amounting to upward OF one hundred thousand
shares The factors enumerated. together with
the increasing pressure Of cotton bills now COM
ing on the market. are indications that gold will
move this way some time this year. II gold
should come to this country in any volume IL
would be a sorry day for the shorts in the stock
market.
Stocks are in strong hands. and the short in
terest is large Technical conditions and bust
ness conditions suggest holding securities fol-
higher prices, especially the cheaper class OF
points below actual worth. The cheaper class OF
stocks is being bought by substantial interests
who evidently realize that the earning power OF
the companies concerned warrants the expecta
ton Of dividends in another year. Southern
Pacific and Norfolk and Western common are
two prominent members of this group that are
making active bids for popular approval Both
issues have been In good demand for London &C
count in the last few days. while transactions
in Southern Pacific have been active for the ac-
count of important local banking interests
Southern Pacifc's earnings warrant the ex-
pectation that at least per cent Will be earned
the stock this year. and Norfolk and West
ern's returns indicate per cent on the COM
mon after a per cent on the preferred There
is no imitation in the greater number Of stocks
the list. The equities in the cheap stocks are
increasing in value every day, and. barring some
radical change in the business situation, market
values will certainly reflect in higher prices the
improvement that is now taking place in actual
worth.
The bank statement Saturday showed the
beginning Of the movement that is now under
way TO increase lendable supplies of money al
this centre.
BANK EXCHANGES AND STOCK SALES
The bank exchanges Of the New-York CIearin,
House and the stocks sold at the New-York Stool
Exchange last week and for the same weeks of IN
preceding two years compare as follows