New-York tribune., 1901-02-18
THE WEEK IN WALL STREET.

THE WEEK IN WALL SAhEEA-
nevelopments affecting actual values encour-
,r. tbe holding OF good securities. The fact that
nrices have enjoyed such long period or ad-
vance naturally suggests that setback may
soon take place but there is no reason 20 sup
nose that a reaction win be followed by an ex-
tended decline, unless conditions governing the
real worth of securities should develop unfa-
vorable symptoms. A reaction az this juncture
would strengthen the market The various
factors contributing 10 strength in last weeks
market were not unlike those on which aggres-
sive buT speculation has so long been based.
Easy money, big railroad earnings and evidence
of a further extension OF the community OF own
ership policy among railroads and Industrial
concerns attracted good buying throughout the
list while several attempts by. professional
traders 20 lower values were met by absolute
Indifference from the principal owners OF securi-
ties. Some weak holdings were shaken out on
Wednesday, but declines were fully recovered
on the following day. The steel stocks were ir-
regular. owing 20 the uncertainty regarding the
treatment OF the different securities IN the pro-
posed Carnegie-Morgan combination, but the
buying OF the stocks was better than the selling.
and declines were unimportant.
At times IN the week there was an indication
OF hesitancy in the market that doubtless re-
hected caution on the part OF many operators.
Compared with other years prices are high, and
some traders naturally view the current level
OF values with alarm. although they admit that
conditions Justify every point OF the advance
far recorded. II Is the old fear OF a specu-
lative slump. Memories OF other bull periods
when powerful interests unloaded large amounts
OF securities on the market have begun 70
haunt the cautious trader. and as a conse-
ouence number OF people who generally buy
cheap and sell dear are expecting a sharp de.
cline IN prices. II the current market We're
similar 10 bun markets OF the recent past, and
n ordinary standards OF comparison could be
safely used. Il might be well 10 look for the
cessation OF bull activity az once. But this
years bull market has upset precedent; Il has
not been controlled by the speculative element;
Il has had stronger foundations than any other
bull market on record. and It has been and stIu
is essential 20 the successful accomplishment
Of great undertakings by the most powerful
capitalists IN the country. The plans OF the
latter viii be finished some day; but until that
day substantial interests VIII hardly allow the
market 20 slip from their control
The supply OF stocks available for speculative
purposes is growing smaller, and the issue OF
new securities ought not 10 be viewed with any
uneasiness. Enormous amounts OF stocks and
bonds have been taken out of the Street IN the
last three months by individual investors and
big financial institutions. What promises 20 be
an important factor in the securities situation so
far as the supply of stocks IL concerned IS the
Railroad Securities Company, which has lust
been formed by prominent banking interests 10
buy and hold railroad securities against which
participating receipts viii be issued. This con-
cern. which is modelled after institutions OF the
kind In Europe, already holds through what IS
known as the Hartman syndicate enormous
amounts Of the Chicago and Alton Kansas City
Southern, Union Pacific, Denver and RIO Grande.
Wabash, Chicago Terminal and Transfer Rail-
road, Chicago and Eastern Illinois Missouri Pa
cihc and St Louis Southwestern issues With
stocks IN strong hands Il viii be hard for bear
traders 20 control the market for any length of
time. AT the moment their main argument IS
based on the possibility OF higher money rates.
encouragement for an advance being found IN
the rapid decrease I'm bank reserves in the last
few weeks. From about $4,000. 600 reserve has
decreased 10 S12 100000. the decrease last weel,
being cue both 10 loan expansion and a loss In
cash holdings. The money market win doubt
less grow frmer and some speculative holders Of
stocks may be forced 10 SELL but il is not likely.
according 70 the views Of the most competent
observers, that there VIII be real disturbance
In money or any Generalization in stocks as n
result OF money market conditions The recent
increases in bank loans have not been due "a
speculative operations on the Stock EXCHANGE.
but 10 the deals involving railroad and indus
ti1al corporations. The interests behind these
deals Will not permit disturbance in the money
market.
me growing strength OF financial oonditIons
IN this country is reflected IN the report q,
foreign commerce for January. which shows a
further heavy addition TO our credits abroad
1he ofacial report shows total exports in value
or sl3oSls.35i and an excess OF exports o,,ar
imports of SCI .2l7 100 This is the hest recors
ever made for January. and in the volume .,
exports IL has only been exceeded nv ,bres
months In the last year Compared win lam.
afy year ago. the increase Is Sls7o0 oOs and
with i've years ago. S49.347.326 In Jannar,
last year the excess OF exports was s4l ZOO oaa
and in 1899 S5a.25l675 the imports sor ID,
time named not showing wide variations r.,
the seven months OF the fiscal year expor,s bs,.
amounted in value 10 500. 229 729 a gain .
Slo2ocoooo over the same period In the nre
ceoing year. and an excess over imports in wall,
Of s443. .39s 65s. against S3I3 GIG s55 in the Yea
before. Against the big excess OF exports ther
is only a small offset in the way or imports q
gold, as in the last seven months gold import
have exceeded exports by only SO. 1863 ll9. An
against this small offset may be placed net ex
ports Of silver Of Sl6.22ll2s. Accounting for a