New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-03-12

THE WEEK IN WALL STREET
The stock market has been almost entirely in
the hands Of professional traders but with only
few exceptions prices have not recorded any
important changes in the last week. Specu-
lative conditions appear sound. Stocks in
strong hands, accounts we'll protected and
holders are confident that higher prices will
rule later on in the season. Capital may seem
Indifferent TO the strong features in the situa-
ton, but IL Will not be well for bear traders TO
be overconfdent regarding the attitude of pow
erful interests. Important Street interests are
not engaged in speculation at the moment
Various factors in the situation doubtless ap-
peal TO them sufficiently important to war
rant caution. but II should be observed that they
are maintaining firm grip upon their security
possessions The money market. the effect of
the new Currency bill upon the supply Of money
the British war loan which may take a round
amount of funds from here, the uncertainty
over the crop season. the possibility OF
lighter traffic receipts and the coming Presi-
Dental campaign are thought by many people
10 be adequate excuses for the current absence
OF the public and substantial operators from the
market. Recent disclosures In connection with
certain industrial companies have created sus-
picion about many other concerns. The Third
Avenue troubles have hurt the speculative stu
alton. as well many bank accounts and then
the falling bank surplus. which, since February
8, has dwindled from $50 600 OCO to So 1853
has naturally helped restrain speculative
activity.
The-Sub- Treasury system has been responsible
for a good part of the loss in bank holdings in
the last few weeks. Government receipts, if
based precedent viii not be large in the
next few months they at present, and
the heavy expansion in bank loans, which has
been due in great part TO borrowing incident to
the purchase of Government bonds. is likely to
of the next few weeks while II the Treasury
Department decides 20 pay premiums the old
bonds from Treasury surplus rather than from
The Government deposits in National banks the
bank holdings viii be considerably enlarged.
The money situation is in interesting posi-
tion and the decline in cash of over 5000, 900
last week suggests the pressing necessity of a
change in the movement Of money IL rates are
TO be kept below the level OF stringency. It is
generally believed that the Currency bill, when
enacted a law will cause a steady increase
in bank holdings. If ii not for this belief
money would not now be ruling at the compar-
ativeIy easy rates reported. and stock market
values would not be holding up so we'll Bank
appear absolutely confident that there will
be disturbance in the money market and
when the bankers confident there certainly
is reason for fear the part Of the general
public If the stock market does not suddenly
rush into boom small spectators may become
tired OF holding stocks and bear traders NAV
force further reactions: but investors need feel
no uneasness, and holders OF well protected
long" accounts should sacrifice good Sc
curities.
Before engaging in an active bull speculation
important market interests are anxious to feel
sure Of the future. They must be confident that
the countrys business WIFI continue on lines
Warranting higher market values; that money
and international exchange market conditions
VIII work in favor Of the bull speculator; that
the public VIII follow when big operators begin
TO lead. This may be called critical period in
the business and financial world The business
world has enjoyed a OF unprecedented
buying, and now there is a slight pause. This
is more natural than surprising. Certain OBJ
stacles are in the way of business the mo-
ment, and with a shrinkage In trade incident to
inns season OF the year the record OF output and
consumption is falling behind that Of the last
two months Strikes at Chicago have affected
many industries. Certain corporations are en-
deavOring 10 hold prices without any regard for
demand, and as noted before difference Of
opinion the probable effect of the none
tary action by Congress is a factor of impor-
tance IN financial and general business circles
In many trades, however long time contracts
being made regardless of current uncertain
ties and the approach Of Presidential campaign
while the average business man expresses the
utmost confidence in the future Of money and
business. This is time for caution and waiting
in business and in stocks, but IL is not time for
fear or pessmsm.
Stock market traders expect a big expansion
in stock market credits soon as the Currency
bill becomes a law, but 1t should be borne in
mind that Increased stock market borrowing
does not change the cash holdings Of the banks
but increases their liabilities and reduces their
surplus. If banks settle their Clearing House
halo. min han
legal tenders creditor banks viii receive bank
notes but their lawful reserve will not be In
creased. The Currency bill will OF course add
10 bank holdings, but it may not prove so great
incentive to speculation commonly ex-
pected. 1t is. however. too early 10 make posi-
tive statements about the probable working Of
the measure.