New-York tribune., 1900-05-21
High. Low, Mayls May12 ch'gsl Sales.
THE WEEK IN WALL STREET.

THE WEEK IN WALL STREET.
The stock market closed the week with bet
ter tone than noted in a fortnight more
while sentiment appeared to be less bearish. II
is not considered likely however, that the bear
element is ready to change its position. Nor is
It thought probable that the public intends to
re-enter the field Of speculation, despite the IA
vorable technical position Of the market and
the encouraging situation in the railway and
business world. The chances Of further trade
reaction are worrying the public and Wall
Street and the speculative element in stocks
believes that the bear side of the market will be
the winning side until after the fall election.
The rally at the close OF the week was war
ranted by speculative conditions. No matter
how bearish situation may be, rallies Will de-
velop, just as declines always develop in the
best times of bull market. Rallies create bet
ter sentiment as long they last and induce
some commission house buying, on the belief
that a genuine bull movement has started. but
in a real bear market rallies are followed by
further declines. and generally by the entire loss
OF small margins put up against stocks bought
in the temporary recovery. The stock market
is a changeable quantity, and no one can ever
predict what course it intends to follow, put In
the present case the absence of public buying
and substantial support and the bearishness or
the trading element suggest that steady ad-
vance In values is not in sight
MANY conservative and optimistic market in
terests have been forced to change their views
regarding the course of values, despite the gen.
eral strength of conditions governing the actual
worth of securities. They have not. however.
changed their opinion as to the ultimate move
r,ent of prices and they not selling their
stocks because of current uncertainties. 1t is
not probable that the great investment holdlnes
of the country will be sacrificed because of trade
reaction and possible lower market values
American investments will not go into bank
rUptcy and American business expansion, II in
terrupted for time. will be resumed. Stocks
are now in strong hands and passing liquidation
only intrenches securities more strongly in the
control of substantial capitalists. The outlook
cannot be considered especially favorable for
people who go long of stocks on small mar
gins but il is interesting to note that commits
sion houses not carrying many stocks for
small traders, while the proportion of stocks
owned outright is larger than ever before re-
corded The movement Of values last week re-
fected nothing beyond the changing views Of
Board room traders. In the early part of the
week decided weakness was noted, especially in
the railroad stocks, In which many tired out
margin holders threw their accounts upon the
market At the close of the week the rumors Of
gas settlement had a most favorable
effect upon prices and It is possible that the
actual settlement of this trade trouble. which
has now been effected. will be followed by a
further sharp advance IN values. The gas war
has involved many large capitalists who have
been fighting another through the medium
of the stock market. When substantial interests
get TO fighting" they do confine their work
TO the stock directly concerned, the influence Of
their operations being felt in almost every secu-
rity on the list With the gas war settled the
stock market will be in much better condition
TO stand the attacks that may be made this sum-
incident of the political campaign and
business reaction
The statement OF foreign commerce for March
proves oonclusively that gold exports have not
been due 10 international trade conditions.
New-York is the cheapest money market in the
world. and gold is going abroad because foreign
financial centres need the metal and can get il
easily here than in any other place The
current ease in money is not altogether a bull
argument the situation. Easy money is
forcing money out of the country, and loans go
a-begging at almost nominal rates. In the pres
ent ease OF money reflected decrease in de-
mand for mercantile well stock market
purposes, and no doubt unwillingness on the
part OF capital 10 move actively into the chan
nels OF trade pending the outcome Of this year s
political battle. 1t should not be assumed
however, that business men are frightened OF
that the country's industrial interests will be
Dental campaign. Underlying conditions are
sound. Money Will not be taken out OF the
banks and put into stockings American in
vestments held here and abroad Will not be
sacrificed. Many markets may rest. and the
business excitement of 1899 may not be dupli-
Gated this year; but il is not considered likely
that the general situation will present the ele-
ments of commercial and financial depression
The stock market will enter the political cam
paign with values many points under the level
OF year ago. and further declines will doubt
less be taken advantage Of by careful operators
10 pick up good securities to hold for the next
period Of legitimate advancing values Stocks
are certainly not a sale their merits
The country's statement of foreign commerce
makes good reading matter in these days of
bear activity in Wall Street. The figures for
April show that the United States is fast be-
coming the greatest financial and commercial
power in the world This country is sending
raw and finished products TO other nations and
lending gold in addition In fact we are lend.
ing Europe money 10 help IL pay trade debts
due the United States. The bank statement for
last week shows that gold exports have been
offset by Treasury payments and receipts from
the interior and the growing ease in foreign
discounts suggests that future shipments of the
metal will be too light to have any effect upon
local bank holdings If the stock marker al.
movement would be under way, but lust a,
present easy money is without effect upon
speculation