New-York tribune., 1900-07-23
THE WEEK IN WALL STREET.

THE WEEK IN WALL STREET.
The course Of last weeks securities market was
extremely gratifying to the advocates Of higher
prices. Advancing values were not accompanied
by active public buying, but the more substan-
tial interests had buying orders in the market
The character Of trading has improved, and
prices are beginning TO show the influence Of the
presence of prominent operators in the market
Despite the recent advance stocks are still sell
ing at an attractive level, and the resistance
shown to adverse developments is an impressive
indication Of the strong character Of present
holdings and the confidence Of investors in the
intrinsic worth Of securities. But, according to
the views Of a certain element in the Street,
prices will be readjusted to a lower level be-
fore the summer Is over. Stocks may sell lower
on political frights and developments in the Far
East. If, however, cheaper prices are made this
summer the decline will not represent reduc-
ton In the actual value of securities.
Bear traders have several strong factors on
their side In view Of the home and foreign
political situation and the possibility of disturb
ance in the worlds money markets as a result
Of the general political situation, some consider
alton should be given to bear predictions Of
lower quotations. Small traders in particular
should proceed with extreme caution in market
operations. The fact that the current stock
market is not made up Of weak accounts lends
tiers that no important setback from the ruling
level will develop but in this present period of
uncertainty over business. money and politics
too much confidence should not be placed in the
bull enthusiasm Of certain people. Investors
may become frightened before the summer is
over. And If investment selling begins stock
values will touch q Cheaper level. There is at
present nothing in the outlook that warrants
the sale Of good stocks, but it often happens
that an indefnable fear attacks Wall Street, re-
sulting in liquidation and passing periods of
panic
There were several developments in the week
Of extreme interest TO Wall Street Gold exports
were resumed. foreign exchange rates advanced,
and the Bank Of England's minimum discount
rate was increased from 3 to per cent-a
sharp and significant movement 1t may be said
that the advance in the London bank rate alters
TO q material extent the monetary outlook in
Europe. and in consequence it must be an i'm
portant influence in the local market. The per-
centage of reserve now held by the Bank Of
England is low. due to the continued drain Of
gold to Paris and Berlin, and the rise in the
discount rate doubtless reflects anxiety on the
part of London bankers over the outlook for
money. With higher discount rates in London,
as against comparatively low rates at this CEN
tire. and with exchange running against New
York, heavy gold shipments from here seem
inevitable. The local market can easily spare
q round amount of gold, but if the movement
runs on for any length Of time it will come in
conflict with the usual home demand for crop
movement purposes, and in that event dearer
money will be quoted in New-York. Already a
hrner tendency is noted in the money market
at this centre. The probable extent of the
financial requirements Of the various Powers
incident to the Chinese trouble is a perplexing
problem. and at the moment no man can predict
what the effect Of that trouble will be upon the
money markets Of the world
Exports Of gold do not represent international
trade conditions. If the movement Of gold
should respond to international trade conditions
large amounts Of the yellow metal would be
coming this way. Gold exports represent money
market conditions. Gold exports from here are
nothing more than loans to Europe, and the for
eign countries not only are not liquidating their
trade debts. but they are increasing their obli-
cations 70 this country.
The report Of the Bureau Of Statistics OF for
eign commerce in June shows total exports of
merchandise for the month in value of S1O8-
2S3897 the heaviest total for any June on
record, and excess Of exports over imports in
value Of S47475013 For the fiscal year the ex
cess Of exports over imports amounted to S544
764.S85. against S529, ,874,813 in the preceding
year. and $6l5,432,6 676 in the year before that
The excess Of exports last year was accom-
pIished despite a gain in value Of imports of
$l52,565,S4O. In four years the excess of ex-
ports has been 81 $40 335 51S In the time named
the excess Of gold imports over gold exports
has been $192. .279.63 leaving a net credit
balance Of S1.784 O55,879. Interest payments.
sales Of foreign held American securities
travellers credits and undervaIuation Of i'm
ports have offset IN part this huge European
debt. but it is evident that a large part still
remains unsettled
Local banks are getting in condition for pos
sible emergencies. Loans are being eontracted
and cash and surplus holdings strengthened
Surplus above legal requirements increased last
week $4.121,T75.