New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-05
THE WEEK IN WALL STREET.


.Ex dividend
THE WEEK IN WALL STREET.
Stock market pessimists received an object
lesson last week which they viii do well to bear
in mind in future periods of business prosperity
and easy money. Easy money and active trade
do not always make bull markets, but the ex-
ception is found only when technical market
conditions are unsound when the factors upon
which trade activity is based are not Of a per-
rnanent character. The trade activity of 1899
shows some signs Of slackening in certain direc-
tions but as a whole the situation presents
most encouraging outlook for continuance OF
industrial prosperity. In connection with this,
Il is interesting 10 note the following summary
Of trade conditions. as compiled by CONNER
cial agency; This year starts with much Of the
years business already done. and all compari-
sons will prove misleading if that fact is not
taken into account Last year the certainty
OF great Improvement had come before the
wear opened and there rush to get in
orders before works became crowded and prices
advanced. This year the works were already
crowded for months ahead IN most lines, and
prices had already advanced far that recoil
had already begun in some branches. and was
thought probable in others With the one ex-
ception of woollen manufacture. the chief indus
tries have met less new business in January than
tracts have been larger than a year ago. In
work turned out the last month probably sur
passes all others, and, rightly considered. the
fact that new contracts for works already well
supplied are smaller than last year is not Of
itself discouraeing. The great burst Of specula-
ton last year swelled January payments
through clearing houses far beyond those of
this year at New-York. and such payments at
other cities also averaged per business day
Ptft Y1ar10h r
er decrease must have appeared in transactions
connected with formation of new companies"
The extreme high prices in iron and steel in
1899 checked for a time consumption, but In the
subsequent period Of waiting the situation be-
came intrinsicaly sounder, and the more intelli-
gent business found signs of weakness
or danger. A demand appears at
hand A revival Of large exports is expected es-
pecially as the difference between domestic and
foreign prices is disappearing The iron and
steel stocks led the way in last weeks market,
owing in great part to the renewal OF confidence
IN these issues this confidence being inspired by
the beginning of dividends on the common shares
of several companies and the publication Of
statistics OF last years prosperous business.
The ease in money and the big investment yield
Of the stocks in question at the ruling level
urally Offset the influence Of the possibility Of
trade depression. which may be development
OF the future. Speculation in the steel stocks
was perhaps too rapid at times. but 1t is con-
sicered quite probable that prices viii move con-
sideraby higher before a radical setback is en-
countered
Industrial stocks are selling many points be-
low the best prices OF a year ago. while the
financial position OF the properties is far better
than it was at the same time The greater
number OF stocks are intrinsically more valuable
than at any time last year, while the market
values are well under the records of 1899. The
industrial Issues have started the bull market
but il is not likely thai the railroad stocks will
remain in the background for any length OF
time. In many well informed quarters of Wal
Street. II is believed that the low priced stocks
and the very cheap stocks will be prominent
features in speculation this year. The actua
worth of this class of securities improved ma
terially last year without corresponding IN
crease in market value and at the current leve
the greater number Of this kind OF Issues ar
absolute bargains. The cheap soft and hard Goa
stocks should be features this year especiall,
Ontario and Western, Reading issues. Wheeling
and Lake Erie and Norfolk and Western com
In the railway list Of stocks paying div
idends there are a number Of shares which ar
well under their true worth Union Pacific pre-
ferred. a per cent stock sells at 10 Norfoll
and Western preferred and Northern Pacif
preferred. per cent stocks sell at 20 and n
respectively. These prices are certainly no
high and at advances Of from ten to hfteel
points they would not be on an inflated level
The stock list is made up Of attractive as
sOrtment OF investments and prospective divi
dend payers. and bear arguments about futur,
POSSIBLE hardly worth discussing al
present
Spectators who base their operations on con
servatisrn viii look odt for the spring money
market and for the possibility or further foreign
selling Of American investments a result OF
the Transvaai war; but the actual investor will
not find in such factors sufficient reason to sell
his possessions Public buying was In evidence
IN last weeks market. Evidence of powerful
support was also presented a factor that ap-
peared to appeal with considerable force TO the
trading element. The weeks advancing ten
dency may have marked the beginning OF the bull
movement which was expected in January. A
reaction may now be due. but IL is generally
believed tkat the market will sell much higher
in the course of the next few weeks. There
many reasons for the belief that stocks are
about 70 move higher and become more active.
The unssttIement caused by the December
smash has been eliminated as market factor
The readtustment of holdings incident TO the
liquidation in December has been accomplished
and the money market has fallen back to
level that indicates plethora Of lendabe funds
ct this centre Technical and money market
conditions favor higher prices Business condi-
tons throughout the country favor higher
prices The attitude OF capita! toward invest
nents favors higher prices.