New-York tribune., 1900-01-01
THE FINANCIAL MARKETS
RECORDS FOR THE YEAR.
CONDITION OF THE FEDERAL TREASURY
RAILROAD EARNINGS
THE YEAR IN WALL STREET.

The recent so-called stock market panic has
had no apparent effect upon business outside of
Wall Street, and there is no reason why it
should have 1t was purely local affair. 1t repre-
sented no adverse development in the industrial
situation. 1t was not a panic resulting from
distrust or collapse in the actual business of
the country. In reviewing the last year and
discussing the prospects for the current year, it
is well to bear in mind that the stock market
convulsion Of the last month of the year was not
factor OF widespread significance or the result
Of decreasing business activity, financial trouble
or political or financial unrest. 1t was a panic
of prosperity. 1t was induced by overspecula-
tion in the newly created industrial shares and
by tight money market caused by good rather
than unfavorable business conditions It is a
well known economic fact that money is
needed in good times than in bad times. Now,
while the money supply throughout the country
has been larger than before record the
resources of the local institutions have been
tailed by the requirements of the country's busi-
ness and in addition the local money market
has been forced TO digest large quantities of in
dustrial securities at fictitious prices. The crash
IN industrial stock values came sooner than
expected, but the commercial community is
none the worse for the speculative spasm, while
the Wall Street situation is far stronger and
more attractive for conservative operators than
st has been in many months. The first month of
messed the highest and lowest prices, respective
ly, of 1899, and also the heaviest transactions
but it is likely that in the current year the rec
ords of 1899 viii be exceeded so far as advance
and dealings are concerned
1t is safe to say that the panic of 1899 will
not be repeated in 1900 unless there should be
extraordinary and unexpected adverse develop
ments. AS to the recent fall in stocks it may
be well TO bear in mind in making speculative
bushel Of wheat bale of cotton less in the
country to-day result of the decline in quo
tatfops; our industries more active than
ever before; our railroads are handling greater
volume of traffic than at the same time in any
preceding year record; there is more money
in the hands OF the general public than ever
before recorded, and foreign trade is running
heavily in this country's favor. This country is
not forced to send gold abroad. The simple fact
Sc that Europe is forced to borrow. and this
market is the best in which it can satisfy
fts needs. People who worrying gold
exports indications of forced payments by
this country TO Europe or as indications of an
unfavorable trade balance are not well ac-
uuainted with the actual position of the trade
situation; neither they intelligently informed
regarding the position of the local and foreign
money market. Exports of merchandise have
been greater than the phenomenal record of
1898, and in comparison with other years they
enormous. And the current record has been
made despite big increase in imports. In the
coming months the outgo of merchandise will
be large if present indications prove anything,
The foreign demand for our manufactures is
growing heavier. High prices for steel and iron
have not checked exports In the course of the
year contract was signed by leading steel
company TO supply the Russian Government
with 10000 tons of steel rails at ruling prices,
he and profitable
ever received in the history Of the steel trade
in the United States. Factors Of this sort are
worth thinking about They are especially in
teresting at this time when many people in
terpret gold exports reflections of adverse
trade conditions. Gold is practically bought in
this market just pig iron or silver bars are
bought.
VALUES HAVE INCREASED.
In the year the actual values Of securities have
increased TO enormous extent but the cur
rent quotation level does not fully measure the
Improvement. Railroads have increased divl-
dends and many companies which suspended
payments in 1893 have returned to the dividend
column And companies which never before
made disbursements to stockholders have joined
the dividend ranks. The increase in earnings
MS been regular feature throughout the year
and there is reason to suppose that earnings
will not continue to expand in 1900. The end
of the wear shows the country richer than ever
before on record. The National finances are
hourishing and individual and corporate wealth
are expanding. When the whole situation is
carefully surveyed it is almost impossible TO find
material black spots. Stock market traders of
bearish proSnvities are beginning to harp upon
the uncertainties that will be involved in the
next Presidential election; but before active po-
litical rnannuvring begins stocks doubtless will
sell much higher than at present according to
1be calculations Of the people best informed on
.be situation Intrinsic value has been in
creased in the year by railway consultations
and NV the concentration of control among rail-
way and Industrial concerns. The great rail-
usv interests In the East and West are work
ing In greater harmony than ever before on rec
ord. and this harmony will accomplish more for
,atas than rate associations were ever able to
accomplish.
The American railroad investments offer an
attractive field for the employment Of capital.
while well managed industrial concerns pre-
sent unusual opportunities for safe investments
which are constantly appealing with Increased
force To conservative capitalists. The prospects
favor easier money, and in consequence in
creased buying of dividend paying stocks, es-
peciaIIy the issues selling under par. And capital
will go into the neutrality-suspicious. shares On
The supposition that their future is sufficiently
favorable to encourage the hope that they. too
must at no late period receive investment re-
turns. The outlook for higher prices in the
cheaper grade OF stocks is encouraging. The
standard shares and mortgage issues are fast
disappearing in the tin boxes Of investors, and
surplus capital will gradually find it's way into
the low priced securities. whose dividend posi-