New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-06-18
THE WEEK IN WALL STREET.

and uncertainty Bear traders in stocks have
frightened people who ought not to be fright
ened, and caused alarm in circles where there
is absolutely no reason for alarm Public con-
fdence has been weakened by the exaggerated
talk of Wall Street spectators regarding gen
eraI conditions. Facts have been brushed
aside and rumors have taken their place. Ac
tuaI conditions have been forced to the rear
market factors and the so-called uncertainties
of the situation have been magni1ed to
tent that has led to considerable liquidation in
stocks and brought about one of the dullest
markets ever recorded in the history of Wall
Street Current uncertainties call for caution,
not for panic. A period of reimbursement in bust
ness affairs does not involve bankruptcy, and
the election of a President does not call for alb
soute business inactivity. Bear traders have
predicted disaster. They now assert that the
wave of prosperity has passed and will not
return that crops will fail, that the iron and
steel business will become paralyzed and that
the political campaign will be accompanied by
acute apprehension and financial and CONNER
cial troubles. 1t is we'll to give full consdera-
ton to the local and foreign uncertainties, but
there is no sense in magnifying them merely
in order to frighten people out of stocks. This
magnifying process, if carried too far, may
actually affect business for the simple reason
that when sentiment is affected business moves
accordingly.
The Wall Street atmosphere is dark and
gloomy, and people who stay in the Street these
days must be their guard unless they wish
to have their senses befuddled. A comprehensive
view of the situation outside of Wall Street fur
nishes cause for alarm Business affairs are
moving toward more conservative and what
Will prove to be a more profitable basis. The
actual volume of business is unusually heavy
throughout the country. Railroad earnings are
ahead of last years records. and II the summer
months show decreases 1t should be borne in
mind that comparisons are with a period in
1899, when traffic enormous. There is nc
prospect of overstimuation in business or of
| large a volume Of work as recorded last
year; but, on the other hand. there is no in
dication that business depression is near at
hand. The political campaign will doubtless re-
strict many lines of trade, but It ought not to
develop any factor that will warrant the sale
Of investment holdings There is little reason to
predict big bull movement in stocks this sum
mer and no occasion to hope for market &C
tivity, but there is still less reason to be in
! tensely bearish-to feel and talk as If the end
OF progress and prosperity in sight
Securities are selling investment basis
and good stocks and bonds not less valuable
than they were year ago Conservative hold
ers Of securities are not selling Small specu-
! lators not in the market, and stock market
trading has developed into purely professional
affair. in which fluctuations are insignificant.
The last week was without life in Wall Street.
The only feature was the annual appearance of
alleged crop reports. which. as might be ex-
I pected were generally bad. Bear traders, who
know Just what Nature will do this year for
/ the agricultural community, have issued bulle-
! tins to the effect that there will be practically
no crops at all this year. and in consequence
stocks ought to be sold. So far as can be
learned from trustworthy sources, the present
! condition Of the crops indicates a smaller yield
than last year but an average yield as com
pared with the last ten years. Indications also
point to crop shortage abroad. Small crops
with a good demand at high prices are not un-
favorable factors, the bears may find out
| If they consult the farmers. Big crops sound
well, but Of what use are big crops If they
not be marketed Wall Street would better not
worry too much about the crops and the pub
lie viii DO well not to accept facts the reports
that reach this city from the Chicago Board of
Trade regarding farming conditions.
1t now looks If money would rule somewhat
higher before the summer is over. Treasury
absorptions and gold exports are not favorable
to lower rates at a time when surplus bank
holdings are light, at present; but it should
not be assumed that the Treasury will permit
any disturbance In the money market this sum
mer or next fall. In fact, the Secretary of the
Treasury has already assured local bankers that
Government deposits with the banks will be
increased as soon the situation requires such
assistance. France may take more gold from
here and Berlin may also call for some of the
metal but shipments Will be more IN the nature
OF loans than forced obligations For the eleven
months Of the year the trade balance in favor of
the United States amounts in value to nearly
$500 600 OOO and the current volume Of foreign
trade is not decreasing. The unfavorable stua-
tion in China caused heavy foreign selling in
this market on Saturday, and this Eastern
trouble may be important factor in all mar
kets this week