New-York tribune., 1901-04-15
High. Low. Apl.1S Apl.4 chg's. Sales.
THE WEEK IN WALL STREET

THE WEEK IN WALL STREET
Considera bic irregularity marked the course of
stock market trading last week but, as q rule.
the general list made further net Improvement
toward a higher level At times fluctuations
were wild. and one day declines We're ex-
tremely sharp. with heavy liquidation through
out the list. followed the next day. however.
by complete recoveries and record breaking
prices in many issues In Mondays decline
prices turnbled as if there were no bottom to
the market but in Tuesdays speculation It
again looked as if the top had not been reached.
The reaction was due in great part TO money
market factors. Fear OF pinch in money rates
served to check extravagant speculation. while
it induced liquidation Of weak accounts. and, as
a consequence. siren ngthened the technical po-
sition Of the market General conditions af-
fecting the intrinsic worth CT securities
nained in favor of strong market. although
they did not warrant the speculation that the
fancy priced railroad stocks would continue to
advance indefinitely. Prices can overmeasure
the most prosperous conditions In the of
many high priced railroad shares market values
certainly measure intrinsic worth. Speculation
generally carries values beyond the legitimate
level and when this situation develops extreme
danger attends operations for the rise.
While many securities have reached the level
suggested by their investment value, there yet
remain a large number OF railroad shares and
industrial issues that entitled to material
Improvement. The greater part Of the in
dustrlal list is not selling on level that rep
resents its actual worth. Exceptions, of course,
are to be found among the industrials, just as
there are among the railroads; but as a general
proposition the industrial shares are cheap. This
is especially true Of the preference issues of the
new industrial combinations. The industrial
stocks Of merit and the cheap railroad issues
are being bought all recessions, and, although
the bull movement may be checked for time
better prices undoubtedly will be made for the
groups named in the Of the next few
months. a per cent rate for call money acts
a safety valve upon speculation. It represses
speculative excitement, but It does not reduce
the true value of securities. Current conditions
in the money market the result of ad-
verse trade developments. Indeed. they reflect
trade prosperity. and the ability Of this country
80 lend assistance TO foreign nations There is
enough money in the country to finance trade
and speculation. and the low reserves at this
centre do not indicate that the sources of the
money supply are about to dry up Call loans
at and per cent will soon be forgotten as
the advanced rate is already attracting money
10 New-York from the interior
Despite the advance that has taken place In
stocks conservative interests predict higher
prices before material setback develops
Street gossip points to 200 for Burlington and
Delaware and Hudson. and proportionate gains
for other high priced shares This group OF
stocks may reach the points predicted. but op-
orators who deal in them should be we'll sup
piled with capital. Fluctuations are so wide
that and 10 per cent margins are likely TO be
wiped out in a day. Few commission houses
will accept orders in the fancy priced issues
save on enormous margins, while on all stocks
unusual advances are required The safest
stocks at present those that are selling
under par, and the chances are that in this part
~ the market important gains are yet to be
recorded Texas and Pacific. Southern Railway
issues. Union Pacific issues and Denver and
Rio Grande are entitled 10 further improve
nenf- In the industrial list Peoples Gas, In
ternational Paper preferred, American Car and
Foundry preferred, International Pump pre-
ferred and United States Steel preferred are at
tractive
Iron and steel trade conditions are strong
crop reports favorable railroad earnings are
large. bank clearings heavy and exports are
still enormous. Investment values are based on
these factors. Speculation continues TO look to
railway deals for bull enthusiasm and il is un-
derstood that there are number of importan mt
negotiations, including the Burlington deal, un-
Ger way a hltch mas developed in the Burlins-
ton DEAL but the change of control scheme has
evidently gone too Tar admit Of failure at this
juncture The Southwestern railroad situation
is big with possibilities. and it will pay watch
the Southwestern shares. In the week many ir-
responsible rumors were put out regarding rail-
way companies. while no actual news, the
hitch in the Burlington deal. was reported.
The bank statement was Unexpectedly good,
showing considerable increase in reserve
through a heavy contraction of liabilities. Stock
speculation in the week larger than ever
before recorded, but the demands the banks
were not heavy. Commission houses are we'll
supplied with time money, while a large proper
ton OF stock trading represents outright buy
ing.