New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-10-21
BONDS.
THE DAYS OPERATIONS IN STOCKS.


Further strength marked the course of values
IN yesterdays stock market dealings. Buying
by the best known banking houses in. the Street
was again a feature. Sales doubtless repre-
scented profit taking by substantial interests. but
the buying nevertheless was excellent in charac-
ter and not representative of small commission
house traders. Weak traders are not taking
the offerings Of big spectators. If prices con-
tinue to advance the weak public will doubtless
come into the market. High prices generally
appeal to the operators small margins. but
unfortunately for their accounts, values gen
orally begin to decline when the weak specula-
tive element begins its operations. The bank
statement showed a decrease in cash holdings
OF S6,3O5, 200. but heavy contraction in loans
and deposits offset to great extent the effect
Of the cash loss upon surplus above legal re-
QUirements. actual surplus decreasing only ST.
016,225. The decrease in cash holdings was
much heavier than expected, while the reduction
IN loans was also a surprise. Evidently the
weeks activity in stocks made no important de-
mands upon bank accommodation. The steel
stocks were IN fair demand yesterday and
speculative and investment sentiment appeared
more bullish over these issues
Reference was made yesterday to the i'm
portance OF discrimination IN buying the shares
Of the new industrial concerns, and Federal
were cited as instances Of sound securities of
sound companies. Continuing the subject It is
well to include among the stocks of merit Re
public 1ron and Steel preferred and common
Here is company that has bonded debt and
no watered stock. It's capitalization is small
and in the poorest years the full dividend Of
per cent on the preferred should be earned with
out doubt. Net surplus in the fiscal period
ended June so was S2,222, 049, after providing
for dividends the preferred stock Of
ST. 421679 The actual net profits for the first
fourteen months Of the company's existence
were 1858, 100, and this result was accom-
rlished after charging off $1,O97,35S for de-
probation in and finished material on hand
and S893.013 for improvements and depreciation
in plants. In the present year further economies
in operation and a concentration of plants will
add materially to the profits from operations
All industrial stocks Of the new combinations
selling a level that warrants careful
study Of the actual worth Of the securities as
investments. There are good Industrial stocks
and poor industrial Stocks and the time seems
ripe for careful investigation of the relative
values Of the various issues
Trade reports for the week show a business
| situation of intrinsic strength, and they fore
! shadow improvement in all lines Of industry
! Business men naturally exhibit some hesitancy
! IN the making of contracts pending the election,
! but the general course of affairs reflects con-
/ 4IuSLSS Al dl DuSlneSS Circles the outcome OF
! the political campaign. Wall Street speculation
/ In the week just closed has measured the grow
/ ing confidence in advancing security values, and
| Wall Street betting has also made it clear that
| the banking community of New York which is
/ IN touch with the business sentiment Of the
| country, is firmly convinced that National pros
| perity will not be upset by the November voting
| Conservative bankers not in favor OF a
| large speculation in stocks at the moment ow-
/ ing to the low position of bank reserves, but
! they encourage the belief OF a big bull move
| ment when bank holdings are again at a normal
! level, and when the chance Of a Popocratic
! Government in this country has been effectually
seldom wait for the actual appearance of ex-
| pected developments, and the advance now I'M
! Ger way is in discount Of increased bank re-
! sources and Bryan defeat next month. The
character Of current trading is better than it has
been in many weeks, but at the same time there
! is considerable manipulation by clever specu-
! lators, who are anxious to sell their stocks to
the public at higher prices.
! In the week the outside buying vas attended
/ by many orders for small commission house
! traders, but a good part of the business was an
parently for the account of substantial interests
! who Will not be forced to sell at a loss in the
event OF an important setback in values. This
! support may not continue this week and pro-
! fessional traders may be able to bring about a
smart reaction. Certain large traders took
profits on last weeks advance but their selling
had no effect upon prices. There is nothing in
| the situation that calls for investment liquida-
/ ton. and the refusal Of investors TO sell will
| prove powerful obstacle to a permanent lower
I level of values. For speculative reasons a reac-
! ton is due Stocks bought reactions and
! backed by safe margins ought to show sub
| stantial profits before the turn of the year.
The usual weekly table of price changes for the
more active stocks follows: