New-York tribune., 1901-02-05
BONDS
THE DAYS OPERATIONS N STOCKS


The stock market was strong and animated
under the influence Of buying FOR both accounts.
Public traders were active. both in stocks and
honds while substantial speculative interests
u,ere snparentlv arrayed on the bull side
throughout the FIVE hours Of business The
character OF the selling was hard 10 define. but
~ is reasonable 20 suppose that heavy realizing
was done by people who had good Information
q few weeks ago regarding the railroad develop
u1ents Of the week just closed. Bull enthusiasm
has been strengthened 10y the Union Pacific
Southern Pacific deal. The importance Of this
transaction Is counted upon 10 sustain values
until some other big railway or industrial an
rouncement IS made. and in the light OF recent
developments il is not safe 20 say that current
expectations viii he disappointed. II may ap-
pear eXtraVaFant 10 predict that the biggest
deal is Vet 70 come as for instance, an absOrp-
ton ~ the Southern Railway and the Atchison
nv PENNSYLVANIA interests, hut in well informed
quarters there are conservative men who are
waiting for just such an undertaking as this.
This is the age Of business concentration. 1t is
period OF far reaching changes in the railway
world. and incidentally q period Of sharp fiuctu-
ations in securities prices. 1t is not period for
small margins in stock speculation.
Foreign houses We're active buyers in the local
market. and general commission house business
was helped hv the ease in money rates and
,he London dispatches foreshadowing a reduc-
tion in the Bank of England's discount rate.
Traders sold Southern Pacific on the theory that
It's value had been lessened by the sale TO thu
Union Pacific, while Union Pacific was bought
Dn the theory that the company would find in
Southern Pacific valuable asset on this sort
II argument Southern Pacific has lost and
gained in value; but the argument is the
product OF the erratic ideas OF professional trad
srs it is hardly worth recording. save as an ex-
ample Of Wall Street inconsistency. All the
Western railroad shares were strong and ac-
tive and in all parts Of the list advancing values
were general, The usually inactive shares made
sharp upward moves, while in the final trading
excited buying OF the local traction issues was
the feature. There were few weak spots in IN
sustrial and railroad securities. Sentiment was
Intensely buIlsh al the close. and predictions Of
higher prices were freely INDUCED in.
The sterling exchange market developed
further strength, and there a feeling that
gold shipments 10 London might be arranged
mis- week. In view OF the loss IN bank reserves
last week and the diminishing receipts OF cur
rency from the interior, gold exports may cause
soue uneasiness IN circles where timidity is al
ways on tap. Current bank holdings are large
enough 20 support bull speculation. despite the
factors named. and reduction in reserve 70
600 should not upset the present buoyancy
~ prices The great November and early De-
eember market was conducted with low reserves
and per cent call money. Higher rates for
funds al this time will not carry values lower
unless the market happens 10 be ripe for a re-
action. The greater number of people in the
Street apparently believe that a new bull move
rnent Is under way. The cry Of the cautious op-
orator is therefore not likely 10 have much effect
upon speculative enthusiasm, bat il may he well
10 bear in mind that sharp reactions are certain
20 develop. Gold exports are significant of
Europes weakness and Americas strength
This country holds 500 7S4:}a more gold than N
did ar this time wear ago. and in actual
money. exclusive Of funds IN the Treasury. the
country has S2l907s0.S13 gain of S1s7 .63o.-
SIS from February. 1900 The money market
position in the United States is too sound 10 he
disturbed by gold exports, especially when the
shipments ~ the precious metal are not made in
response - international trade conditions