New-York tribune., 1900-04-02
THE WEEK IN WALL STREET.

The advance in stocks which began two weeks
ago continued in the last week without i'm
portant interruption. Buying for public ac-
count was heavy, while foreign speculative and
investment purchases We're striking features of
the dealings. London sold a great many stocks
in this market, but its sales were more than
offset by its purchases, which amounted to up
ward of 250000 shares. European confidence
In American securities has been quickened by
the passage of the gold standard bill. European
buying of American securities is not necessary
TO the prosperity Of the American investment
market; but European confidence in our fnan-
cial and industrial position reflected in a for
eign demand for our stocks and bonds is a
highly gratifying incident of the present cheer
full and encouraging situation. In addition to
the stimulating influence upon local sentiment
of foreign operations in American securities. the
home trader finds in home conditions sufficient
argument for activity the bull side of the
market Money market conditions have changed
In favor of easier rates, trade expansion con-
tinues and the possibility Of the South African
war becoming factor Of serious Importance in
the local markets has been eliminated from the
field of speculative discussion
In the early part of the year some doubt ex-
listed as to the continuance of prosperous In
dustrial conditions Doubt existed as to the
tainty over the money market was acute
These factors have been settled as every holder
of stocks wanted them to be settled. The Boer
war is not over, but it no longer is matter Of
doubt. Railroad earnings and the statistics of
business throughout the country satisfy the
most pessimistic person that industrial expan-
sion continues. with every prospect of running
on for a long time to Increasing bank
reserves and the approach of the usual period
of easy money rates backed by the provisions
affecting the banks Of the currency law,
give assurance that disturbance will take
place in the money market this spring and
coming summer While foreign buying of
American securities has not depressed sterling
exchange the gold importing point, it has
supplied a safeguard against gold exports
Merchandise exports from here are enormous
but imports are increasing at a rapid rate and
vast amount of travellers credits are important
offsets. Then it should be borne In mind that
while Europe is buying our securities it's trans
actions are not all on the buying side Its sales
appear to be in the high priced stocks and it's
purchases in the low priced Issues, and it may
be that the excess Of purchases over sales is in
great part swallowed up by the difference in the
price for which the high grade stocks are sold
and the cheap grade stocks are bought
London operators and local operators buy the
cheap stocks on the theory that these issues
present the most attractive opportunities for
market operations. The cheap stocks may not
remain cheap for any great length of time
especially IL their actual value continues to in
crease at the current rapid rate Railroad earn
ings must find reflection in stock market values
and there are no stocks in better position to
respond to earnings than the low priced secur-
fties which selling far below the level
to which they are entitled by present value and
Splendid he
eral are below their real worth. and in the
opinion OF many able observers the top will not
be reached until a material advance has taken
place The American railroad of the present
day is ably managed and its securities rank
those Of AL other railroad issues in the world
The concentration Of control policy among the
railroads of the country is being developed rap
idly, and it will be only short time until all
the leading railroads in the East are controlled
by one set of railway interests. Irrespective Of
the advantages that all roads will enjoy as a
result OF this policy, the actual worth Of their
securities will continue TO increase on the grow
ing traffic receipts that are now so general in
all parts Of the country. The earnings of the
roads in the South enormous. Prosperity
has visited the South and Southwest with a
force which the average investor fails to appre-
ciate, and the gain In market values Of the
Southern securities has not yet adequately meas
ured the actual increase in the intrinsic worth
of these investments
The fluctuations in Sugar Refining stock are
not harning the general market, and the fran
chise tax assessments have not hurt the shares
of local corporations. Wall Street believes
that the heavy valuations will not be sustained
Technical market conditions are doubtless
weaker than they two weeks ago for the
advance has brought out a good deal of stock
accumulated at lower prices, and many weak
holders have become interested in the market
The force of public buying ought, however to
carry values higher before the inevitable reac-
ton sets in. The reaction will come when the
market becomes topheayy. and 1T Will be due to
market causes and not TO business financial
conditions.