New-York tribune., 1900-11-19

THE WEEK IN WALL STREET.

THE WEEK IN WALL STREET.
Many striking advances were recorded in last
weeks securities markets. and with only minor
exceptions the general list closed well ABOVE
the final level of the preceding week. Causes
leading TO the improvement in securities values
are easy TO find but it is extremely difficult to
discover any adequate reason for the belief
held by certain bear spectators that conditions
governing values have been more than dis
counted by market quotations. Caution Is a
wise principle to follow in speculation, but
biunders ana obstinecy generally lead TO severe
suffering in the stock market. Traders who
make short excursions on the short side Of the
rnarket in a period of bull activity act within
the bounds OF reason, but operators who fight
the advance and fail to appreciate the signih-
canoe Of changes affecting intrinsic values are
In the greater number Of cases doomed to dis
appointment and defeat II should not be as
surned that the current bull enthusiasm and
the advice to buy stocks imply that any stock
is a good purchase and that reckless speculation
can.ot bring defeat. The very fact that the
market is enjoying bull boom suggests the
necessity OF large margins, discrimination IN the
purchase Of stocks and especial conservatism
among the so-called public traders.
The prospects are promising for further i'm
provement in stock values. Improvement how
ever will doubtless not be accomplished with
out sharp reactions, such those that took
place on several days OF the week just passed.
There were times last week when 2 and per
cent margins were wiped out and when stocks
on per cent margins needed additional pro-
Iectfon. Setbacks Of this character preserve the
health OF a bull market and insure It against
the evil effects Of overbuying and weak ac-
counts of public traders. All OF the high grade
stocks IN demand last week. Buying of
he &atfy has hoo INN o+
factor IN the market ever since the election and
there is every reason to believe that the inquiry
for standard investment shares will continue
for a long time 10 come. From the character Of
current buying II is safe TO predict an important
upward movement IN the preferred stocks OF the
reorganized railroad properties. and 1t also ap-
pears safe to count upon price near par for
number Of attractive preference issues
Stocks such Union Pacific preferred have not
enjoyed an advance IN proportion to their real
worth Many Of the high grade preferred
stocks have not advanced in proportion to the
common stocks but indications point tow
ard a material appreciation IN Northern and
Union Pacific preferred, Atchison preferred
Southern Railway preferred Norfolk and West
ern preferred. st. Louis and San Francisco pre-
ferred and others.
Money IS now seeking investment Money that
was held in check pending the election has been
released 10 move into the channels Of trade
and commerce. The reelection Of President
Mckinley opened the gates that held capital in
restraint Employment of a vast amount Of
capital in the industrial activities Of the Nation
VIII be the striking feature Of the business mar
ket in the next four years and the extent of this
movement will probably be greater than any
man now believes possible. Already trade is
beginning TO show what it wants to do This
year and next year. The bear element IN the
stock market aT1T,a W &c
importance and real significance Of recent cleo
ton results. while it s altogether wrong in its
measure Of the character Of present stock mar
ket holdings Stocks are being bought by in
vestocs. This kind Of buying was one Of The
most striking features in last weeks marker
people with money buying stocks outright for
investment and for purposes of control The
talk that securities values are too high is nor
well founded. The current market cannot he
judged by ordinary standards because the ,ra-
vailing conditions and prospects have never he
fore been witnessed IN the history OF the conn
try Bear manipulation will doubtless be exer-
cised to destroy the fabric Of values hut hull
markets rounded on conditions such as those
nov in force cannot be destroyed by bear
manipulation especially when public capital is
working on the bull side of the account
Money market conditions at this centre con-
tinue TO improve. Bank cash holdings increased
legal requirements over $1,000 900. AT the end
Of the week interior exchange moved more in
favor Of this city Chicago rates going from q
discount to a premium II any one feels un-
easy over the monetary situation, a reading OF
the countrys foreign trade report for October
will remove his fears. The full statement ot
foreign commerce shows total exports in value
OF s163, ,093,591. the largest for any month ir
the history Of the country. Imports were under
exports by $92.475, ,226. which added TO the trade
balance in favor Of the United States in tbe
preceding months Of the year, leaves total ex.
cess Of exports over imports for ten months in
value Of S439,667 ,936. compared with $370. .3O9.
3Sl in the same time a year ago. The financial
position Of the United States was never stronger
than II is to-day. and the records OF foreign
trade and the credit developments of the last
year IN connection with our own Government
ponds and the floating of other countries bonds
Ia this market show that New-York is becoming
u 1t is not already the leading financial centre
o. the world country's foreign trade fur
hlshes an excellent barometer OF trade and
money conditions In the case Of the United
states this barometer shows no financial or bust
ness clouds. while IL supplies a powerful argu-