New-York tribune., 1900-03-19
High Lew, Mar1I Mario Ch'gs, Sales,
THE WEEK IN WALL STREET.

Stock market tracing has been in the hands
of the boardroom element and speculative
cliques but with few exceptions stocks have
been inactive both in respect to the price move
n1ent and the volume of business People who
constantly look on the dark side of all situa-
tions have been predicting a crash in values
and advising short sales. Ordinary traders have
been working on the bear side and bull traders
have failed TO induce public buying. Money has
ruled at per and bank reserves have
fallen 10 the level that caused panic in De-
cember. But stock market quotations have not
fallen away. Short sales have not proved prof
liable. and. despite extreme dulness values have
held remarkably firm, with many substantial
advances foT the week This may not be an in
Gication Of a coming bull market. but il proves
that speculation is sound; that there are no i'm
portant weak accounts in the market and that
stock market figures do not represent more value
than stocks actually possess Money market
uncertainties have checked speculation and in
duced caution on the part of conservative inter
ests. II is too early to predict what the effect
Of the new Currency law upon the money market
will be, and pending indication Of what that
influence will amount to stock speculation is
likely to remain wholly professional.
The enactment Of the gold standard bill as a
Law of the country the most significant de-
velopment Of the week. So far the securities
market is concerned, the Importance of this law
has yet to be reflected in market operations;
but like all other favorable factors ii Will find
its proper position a market influence In due
time. The discounting process so common In
Wall Street has not been employed in the case of
the Currency measure 1t is generally believed
that the effect Of the law upon the money
marker VIII be gradual The first result will be
the increase of circulation of 10 per cent to
which the banks entitled on existing de-
posits Of Government bonds held for banknote
circulation, and then the premiums paid incident
TO the exchange Of the old bonds for the new .
per cents Will, of course, be important item
although the actual bank holdings NAV not he
increased as the Secretary of the Treasury may
decide TO pay the greater part of the premiums
from deposits in National banks rather than
from The Treasury surplus How much new cir
culation will be taken out in excess of the 10 per
cent just mentioned is a question which no one
can safely answer. In conservative circles infa-
ton is not expected, and much criticism Is heard
Of the estimates of some people VINO assert that
enormous money imitation will soon begin. In
view OF the expansion in business, an addition
of SlS1o0O.WD to banknote circulation would
not represent imitation. but good judges do not
believe that the amount of new circulation will
ever reach that sum.
1t should be borne in mind that current high
prices OF Government bonds lessen the induce
ments for local banks to take out new circuIa =
ton, While, on the other hand, the higher ra tes
for money that prevail in the West and Sontb
VIII encourage increased circulation and in CON
sequence reduce the strain upon this centre for
funds The gold standard law is a measure
whose Dement'S viii not develop in minute 1t
is not A measure designed in the interests of
STOCK spectators but eventually ii should serve
10 increase stock market activity. The stock
market VIII enjoy in time the benefit Of current
favorable factors in the business and financial
world. and at present prices short sales do not
appear attractive. Buying for a rise is not
active, but stocks are we'll held and at the close
Of the week speculation showed some signs of
outside interest.
The bank statement for last week was better
than expected. and the decline in surplus to
under S3,bO,WDO doubtless marked the low point
OF the year. Loan expansion incident to special
operations Is over for the present, and it is
commonly believed that loan contraction will
nsfNp fi1aa to
change is turning in favor of this city. and
Treasury absorptiCns from the local banks give
promise of decreasing. General conditions
which govern the real worth of stocks and bonds
are strong and technical conditions in specua-
ton are not In favor of lower securities values.
Comparisons of railroad earnings are excellent,
and while the gains SO far reported in March
are not quite as large as those report d in Feb
ruary. there is general Improvement throughout
the country. The heavier gains in February
were due to the fact that in February year
ago traffic was reduced by severe storms that
c -. IL E 49,