New-York tribune., 1900-07-09
: High. Low. July 7. lJnesOl Ch'gesl Sales.
TIE WEEK IN WALL STREET.

L.
Current advances IN the stock market are not
accompanied by heavy public buying The
general outlook presents no particularly encour-
aging bear argument, but the other hand it
must be admitted that there are certain factors
IN the situation which tend to check confident
outside buying. The public does not yet fully
understand the character Of the reaction now in
progress in the iron and steel trade, and 1t is
apprehensive in respect to the decrease in net
railroad earnings TO the suspension of labor
tivfty at many iron and steel plants. TO Chinese
conditions and to political uncertainties The
dulness in the stock market reflects caution
the part OF real investors. The recent rallies
represent the covering of an overextended short
interest, the readjustment of values after long
period of declining quotations. While many
traders believe that the factors mentioned have
been discounted by the long season of declining
values and that the good features in the situa-
1ion have not received adequate attention, the
public. nevertheless, is afraid TO venture into
the market pending the removal Of the present
uncertainties Wall Street professionals and
substantial interests work in advance in specu-
Iation. And in doing they generally make
money while the public loses.
Public operators may do well to defer their
purchases Of securities, but the investors and
the men with ample capital have little reason
for anxiety over purchases made at the ruling
level Of prices. Lower prices are possible. Later
on in the summer the market may have polit
icaI scare, and IN that case lower quotations
than any yet seen this year may be recorded.
The possibility Of political scare in Wall Street
that is, a sudden fear that Bryan may be
elected-shouId be kept in mind by all market
followers. With an explicit declaration for 16 to
] in the Democratic platform, Bryan will be
easier TO defeat than if such declaration were
vI~al1 oy1H
the fact that the silver men carried the Demo
cratic Convention their way will doubtless in
crease the confidence in business circles Of Presi-
dent McKinley's reelection. There are many
men IN this country who have peculiar ideas
and they will be enrolled under Mr.. Bryan's ban
sner, but there are also many who possess solid
horse sense. and they are the intelligent Yam
kee business men in all parts Of the Union. And
the last named element will not support 16 to
or any other dangerous doctrine. The tntelI-
gent voters of the country in all ranks of life
won the election four years ago, and they will
doubtless come out ahead in the election of
1900. But even the certainty of Republican sue
cess may not prevent stampede Of liquidation
IN the stock market if Wall Street should de-
veiop one Of its inexplicable frights.
Decreases in railroad net earnings are becom-
ing more general, despite a large volume of
traffic, as reflected in heavy gross returns. The
higher cost for labor and materials, and the
large amount of money being expended on i'm
provements and charged 10 operating expenses,
explain the falling off in net results, and there
is no occasion for alarm because of the change
from the large increases of the last year. Bar
ring Democratic success in November, decreases
in net earnings viii not be permanent. Rail
road managers are confident Of the future, and
they are freely spending money on their proper
ties. The railroads Of the country are in sound
physical and financial condition, and expendi-
lures for further improvements now are made
in expectation OF increased prosperity after the
period Of trade readjustment and political un-
certainties is over. Current reductions in net
returns viii not foreshadow dividend suspension
All the dividend paying roads have been earning
largely in excess of dividend requirements for
the last two years, and they can easily weather
season Of reaction If net returns were de-
clining because Of an actual reduction in gross
earnings there might be reason for uneasiness
The money market position the world over is
sound Underlying conditions in business and
money are strong, and dire misfortune or any
thing Of the kind is not likely to happen The
business situation and the stock market situa-
ton are IN good condition TO meet home or for
eign political shocks.
The success Of the efforts Of leading steel
concerns to restore conditions in their trade. or
al least, 70 prevent Generalization has yet to be
determined If the trade can be kept in order
until a new buying movement begins something
like prevailing prices may be maintained for a
considerable time TO come. The disposition Of
buyers CT rails, structural material etc is 10
hold of in hopes OF getting the benefit of lower
prices. The shut down Of many mills and fur
naces pending agreement with EMPLOYEES
may be Of advantage 10 the trade and to the
workers well
Special interest is felt in the Government
monthly crop report which is to be issued to-
morrow. 1t is expected to furnish practically
definite and authentic information as to the
wheat Yield. 1t Will also tell officially the state
Of cotton. 10 which much doubt exists Fur
thermore, ii viii contain the first official ad,icas
as 10 this years corn crop
GOVERNMENT PONnS