New-York tribune., 1901-04-02
BONDS
THE DAYS OPERATIONS IN STOCKS.

THE DAYS OPERATIONS N STOCKS.
Advancing prices an enormous volume Of
business marked the course Of security market
trading yesterday. Higher quotations at the
opening were followed by unimportant recessions
from realizing sales. but in the greater part OF
the day unbroken strength attended the move
r,ent Of values. Rock Island Pennsylvania, st.
Paul Union Pacific. Erie and Reading issues
were conspicuous features il the railroad list,
while the steel and iron shares Were prominent
among the industrials Burlington reacted sew
eral points on heavy profit taking pressure. but
recovered part OF the loss before the close. Rock
Island and Pennsylvania made new high record
prices, as did also the Erie and Reading shares,
many Of the low priced railroad issues and
number OF industrial stocks. Commission house
buying was heavy. especially in the standard
shares which continued to appeal 10 outside
traders despite the substantial advance already
recorded. Prices for some Of the railroad shares
are al level that does not overmeasure in
trineic worth hut which, nevertheless. suggests
the taking Of profits. Rock Islands further
sharp advance was accompanied by consolida-
ton talk, but the buying was doubtless based
on q tardy recognition Of the merits Of the stock
rather than on any information regarding 4
possible alliance with some other company.
Rock Island IS an attractive investment issue.
An advance in call money TO per cent IN the
last hour caused some selling. but no important
declines, last prices being only fractionay under
the best of the day. Buying orders yesterday
came from all parts Of the United States. and
total dealings were. with the exception of the
business on January Z, heavier than any
other day on record.
The statement by the Secretary OF the Treas
ury regarding the chances OF the Treasury De-
partment buying government bonds or increas-
ing its deposits in national banks may have
caused some uneasiness in poorly informed cir
cles. but il certainly was not effective in dis
lodging any important stock. Secretary Gage
sees in monetary conditions this centre no
indication Of coming stringency. This is the
view taken by all intelligent bankers, and ef-
forts therefore. TO make capital out Of the gov
ernment's attitude toward the banks not
likely TO be successful. II would be poor bust
ness for Secretary Gage 70 buy government
bonds at current high prices. and II would
doubtless be equally improbable for the banks
10 accept increased deposits for government
count, such deposits must be secured by
government bonds. II a money panic in
sight the Treasury Department would. Of course.
come 10 the assistance Of the money market,
despite the prices it would have TO pay for
bonds: but as there is disturbance in view
Il is useless to expect government purchase OF
bonds at the prevailing level Of quotations. The
Treasury is locking up money, and. while this
is unfortunate and due 10 defects in the Sub
Treasury system. Il viii work no hardship on
business affairs, owing TO the enormous supply
4 money in the country. After the middle of
this month there should be a steady increase
in the available supply of funds at this centre.
For the present the cash holdings are sufficient
~ large I. care for current operations in specu-
lafiCp nd
strength OF the situation is reflected in the
I'm rates with reserve above legal requirements
al only 100000
Money market considerations are not disturb
ing the confidence OF investors. And they do
not at present exert any influence upon the
greater number Of spectators. Wall Street has
made up its mind that the stock market will
sell higher. irrespective Of changes in money
rates, gold exports and bear attacks upon
values. Careful traders taking profits in
the high priced railroad issues. and in many
cases reinvesting their money in the attractive
Industrial shares that have failed to measure
their actual worth in market prices. The foun-
dation upon which the value Of the steel securi-
ties is based is better appreciated than il
few weeks ago, and a consequence the pre-
feTred stock OF the big steel corporation is going
into investors boxes. The same kind of buying
is carrying other preferred industrals. notably
Car and Foundry preferred and international
Paper preferred. toward par. a price which will
not be dear. based on the dividend returns of
the issues In yesterdays market American Car
and Foundry preferred and International Paper
preferred again strong features on
cellent class OF buying and the common shares
moved up in sympathy Current opinion in con-
servative circles Is extremely bullish on the
preferred industrial shares, and predictions are
made that International Paper preferred viii
sell at par before July. Based on the merit Of
the stock and the security II represents. this
prediction is reasonable. A sound preferred
per cent Industrial is certainly worth par and
better
TuE DAYS OPERATIONS IN BONDS