New-York tribune., 1900-03-26
THE WEEK IN WALL STREET.


The transfer of the control of the Third Ave
nue. Railroad to the Metropolitan company was
the leading influence In the Wall Street markets
last week The recent decline in Third Avenue
stock and the developments showing the malad-
hninistration of the company exerted a most de-
pressing effect upon the financial community
and upon holders of stocks who naturally
formed hasty adverse opinions regarding some
other companies of high merit. 1t assumed
that If supposedly conservative old company
such Third Avenue could be forced into
bankruptcy the thing might happen to
other recognized properties of good standing
Hence ii followed that when a responsible cor
poration. the Metropolitan company was will
ing TO take the Third Avenue system with it's
enormous unpaid obligations Wall Street senti-
ment became more cheerful and by degrees
worked itself into buoyancy. The sympathetic
influence is nowhere stronger than In Wall
Street. If one company goes under fear is i'm
mediately entertained for other companies and
stocks decline with more regularity than with
sense or reason. If a bankrupt property is lifted
out Of its trouble its stock value advances and
the rest OF the list goes with it. AS soon as the
good news of Third Avenues rescue became
known there was a general rise in values Of all
stocks. Third Avenue stockholders were glad
dened, because in place of facing a probable
total loss on their holdings they value com
ing back 10 their investments. with the prospect
of a complete recovery without the necessity of
a stock assessment. The depression of senti-
Hent among holders of other stocks was sue
ceeded by feeling Of buoyancy, and it is not
extravagant to say that the speculative situa-
ton enjoyed a complete and radical change i'm
mediately after the announcement of the new
interests in Third Avenue
In addition to the improvement in sentiment
caused by the factor named. the market was
helped by the damage which the bear element
suffered as a result Of the Third Avenue cor
ner." The corner in this stock served the useful
purpose Of checking the pernicious activity Of a
certain set of bear operators whose speculations
have done great deal Of harm to Wall Street
within the last six months or more As a rule
Wall Street corners followed by favor
able results. but the Third Avenue corner has
proved exception The local traction situa-
fion is cleared to important extent by the
transfer of the controlling ownership of Third
Avenue TO the Metropolitan company and the
stock market Is safe, for a time at least from
the destructive operations Of recently powerful
bear spectators.
And another important result which appears
TO be developing is increased activity of public
operations in the market. Losses suffered by
big bears have been heavy but the discom-
fture of this speculative element will serve to
increase legitimate speculation and doubtless
act as warning to the INSCRIPTIONS operators
whose methods have recently been under discus
sion by a Grand Jury. Bold efforts NAV be
made TO recover losses, but the force OF good
buying and the power Of substantial ca pitalists
who are now active in the market ought to
make bear success impossibility for some
time to come
Buying of good railroad stocks was a feature
in last weeks market Such stocks as the
Union Pacific. Northern Pacific. Atchison and
Southern Railway issues reflected the desire of
capital 10 move into securities of merit securi-
ties whose actual worth is far above the cur
rent quotation level, and whose growing intrinsic
value must be followed by corresponding gain
in market prices. The enormous earnings of
the railroads whose securities selling under
par and under 80 beginning to tell on quo
tations. Stocks Of this class will. it is believed
prove the most attractive purchases this year.
Another class that will doubtless enjoy better
prices is that which includes the very cheap
issues in which value is rapidly being injected
by Improvement in the business of the com
panies.
The foreign demand for American securities
was a striking feature in last weeks market
and one which is likely 10 become more marked
throughout the year. The passage of the Gold
STANDARD act has exerted powerful influence
upon foreign sentiment European investors
realize the value of American securities and II
only nScleG the tsid blsHfiltnt Dy law or gold
the standard of value TO convince the foreign
buyer that financial conditions here are now on
basis which will protect the stability and
value of investments. The time will come
when similar reasons will induce American in
vestors TO buy Mexican securities for the de
velopment in the industries of our southern
neighbor and the spread OF education among her
masses will most certainly be followed by the
adoption Of a modern financial basis in the Mex
ioan Republic.
Money market conditions are beginning to
work in favor OF the borrower Tight money ia
now out of the question. Interior exchange is
turning in favor OF this centre, Treasury alb
sorptions from the local banks are growing
lighter. and the influence OF the new currency
law will gradually work to the advantage of the
money market Deposits Of bonds for new cir
culation amounting to more than $500 900
daily, indication that the outstanding Ma
tioEal bank note circulation will be creased
above the extra 10 per cent to which the banks
are entitled on bonds already held to secure
circulation. Moreover, q large number OF in