New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-05-14
THE WEEK IN WALL STREET.

THE WEEK IN WALL STREET.
Stock market speculation is in The hands Of
the professional traders, and the greater number
Of traders working for lower prices The
public is not in the market. Important interests
engaged in speculative operations, and
efforts are being made to advance prices. or
to check bear activity and the sagging
tendency OF values. The trading element is
bearish because of trade reaction and political
uncertainties. Public operators are more in
clined reduce their holdings than to buy at
the current attractive level and commission
house selling-genune lquidaton-is a
feature of the market Corporations, banking
interests and rich investors selling, but on
reaction they quietly buy good securities. They
are not buying in the expectation Of i'm
mediate rise in values. but they satisfied
that stocks bought at ruling quotations will show
handsome profits later in the A bull
movement may not develop until after the cleo
tion but there many people who believe that
higher prices will rule before that time. They
contend that the current so called uncertainties
will not develop into adverse factors affecting
the real worth Of securities. and that as soon as
the Street and the public recognize the weak
ness OF the bear position a big change will take
place in sentiment and prices.
healthful trade reaction is in progress. The
country's industries are not depressed, but they
being readJuSted 10 a SOunueT DaSiS Inc
money market position of the country is strong
and beyond the reach of political mischief max
ers The general foundation Of the commercial
and financial situation has not been impaired.
Will politics upset existing favorable conditions?
This is a question that is worrying Wall Street,
and the bear element has succeeded In making
many people believe that politics will check in
dustrial prosperity reduce railroad earnings
and injure the value of Investments.
Outside of Wall Street the business men Of
the country are not worrying about the Presi-
Dental campaign. Sensible men believe that
Mr. Bryan will not be elected. and that condi-
tons governing business progress will not be
changed by the fall election. In its sober mo-
ments the speculative community does not be-
lieve that the country is going to the dogs. but
bear predictions are gloomy and sentiment is
naturally depressed. The outlook is not promis-
ing for immediate rise in prices. because
many large market interests are leaving the
country on extended vacations and because the
professional element is in control of trading.
This control, however is not based upon an
actual depreciation in the value of stocks or
upon a big floating supply Of securities II is
based upon the refusal of the public TO buy
and upon the absence of prominent interests
from the market. 1t is a control which could
easily be taken away If moneyed interests
wished to resume operations. Genuine holders
OF securities should not be deceived in the char
acter of current unsettled speculation. and they
should not sacrifice good securities because Of
uncertainties that have been magnifed beyond
the limits of and reason.
Gold exports trade reaction, labor troubles
and political uncertainties have been more than
measured by the decline in market values.
Stock market movements, however. generally
go to extremes and in the present few
persons are brave enough TO predict the limit
of the current movement. 1t depends 10 great
extent upon the amount of weak accounts still
IN the market and upon the view that holders
OF stocks will take Of the probability of So
called uncertainties developing into actual IN
favorable influences upon the country's general
trade position. With SO much uncertainty pre-
vailing TO the future course of values and
with professional traders in stocks active On the
bear side Of the market, il is more than likely
that the public Will not come into Wall Street,
but il is not probable that the securities that
are locked up in investors boxes will on
the market. For technical reasons a sharp rally
ought take place In last week s
market rallies caused by covering of shorts
brought out many commission house margin
accounts. and the failure of the rallies to at
tract new buying encouraged bear traders to
work for lower prices after each recovery. The
time will come. however when the short in
terest will be crushed by Its own weight.
The shrinkage in market values in the last
twelve months has been enormous. Based on
actual worth. few securities selling above or
at their true value, and unless conditions gov
erning actual value begin TO go down hill stock
quotations Will not be adjusted TO a permanent
lower level. Trade reports do not favor bear
predictions of breakers ahead and bear en-
thusiasm and manipulation do not reduce tho
chances OF further progress in trade upset
rl<efc dnEI-y1
Railroad earnings received last week showed
heavy gains Money market rates were not
affected by gold exports. and declines In stock
values were not accompanied by panicky con-
oitions. The crop report q bull argument
on stocks that had. however no effect upon
prices. All the real evidence of trade conditions
was put aside worthless. According TO Wall
Street as represented within the four walls OF
the Stock Exchange. the situation will soon be
filled with all manner OF trouble. business wrecks
Industrial prostration with the strong probable
fly of stock values sinking TO minus Quantities
Wall Street is suffering from disordered imae
nations.