New-York tribune., 1901-08-12
THE WEEK IN WALL STREET,

The course Of the stock market last week
reflected or at least suggested that the influence
of the Steel strike IS for the time at an end
OF course il is too early TO say that the strike
will exert no further adverse effect uFon values
but the movement Of the steel stocks certainly
indicate. that these issues are in the hands OF
reople who are not forced TO sell at going prices
Indeed the steel securities are in the hanos OF
interests who evidently intend 10 support the
market no matter what course the steel strike
assumes hereafter The test of strength be
tween the trust managers and the employees VIII
come this week No matter what the immediate
results NAV be the big steel combination will
win in the end ana il viii doubtless accomplish
this resulr before dividends upon the common
stock of the company are threatened. Even II
The dividend on Steel common should be affected
the price of the stock ought not TO go much be-
low the current level AS an influence on other
lines Of industry the steel strike if prolonged
will become an important influence, but the gen
eral decline that has already taken place IN
stocks discounts this possibility. stock Nalues
have already declined from u TO 50 points in
the last eight weeks and for most shaFes
prices are well under a normal level
II should be borne in mind that the technical
nosition of the market is strong and that gen
eraI conditions affecting investments are sound.
Despite a smaller corn crop the country and
other countries dependent upon the United
States for breadstuffs will not starve. In some
States there Will be little corn and some indl-
vidual losses but the country at large should
not suffer. as it viii have the largest wheat
crop on record and doubtless enjoy stability in
general business affairs. The railroad companies
do not look forward to any serious loss from the
lighter WELD Of corn, many roads VIII handle
enough wheat 10 offset their reduced corn traftlc
while all the farm" roads will feel the gooc
effect of the more diversified traffic that has
developed over the Western transportation lines
in the last few years. Reports Of railroad earn
ings for July show most gratifying results. and
for the greater number Of roads earnings were
heavier than in any corresponding month on
record Trade reports are satisfactory show
ing an unusually large volume Of business for
this time Of the year and rejecting great busi-
ness health in most lines Of industry. Later on
in the season stock values should move in re-
sponse to factors affecting their actual worth,
and in expectation that such a course will de-
Velop many careful operators are picking UP
securities at the prevailing bargain level Buy
ing of this character was noticed last week.
Gold exports al this season Of the year may
be considered adverse factors by timid market
operators but in view Of general financial con-
ditions in this country there IS no reason for
alarm over the present tendency in the foreign
exchange market. Opinion is divided over the
reasons contributing TO the great strength in
steriine rates. In some quarters. il is main
tained that the country's trade balance abroad
has been wiped out, and to support this theory
Il IS pointed out that there have been enough
factors-for instance. the loans from foreign
bankers in connection with the incorporation OF
the United States Steel Corporation-to Offset
the heavy excess of merchandise exports over
imports. In August last year about Sl5,ooOoot
gold was sent abroad. but in past years rates OF
exchange IN August. as rule, have not been al
the high figures now quoted. The current
strength is helped by the maturing Of sixty
day bills. that were put out at the time Of the
steel deal. and also 10 the paying off Of matur-
ing loan bills created on the Chicago, Burlington
and Quincy Railroad Company stock conversion
While exchange rates are running high the
movement Of American products to Europe con-
tinues largely in excess Of imports and all in
dications point toward a big outward move
rnent Of breadstufs this year Exports Of wheat
are growing and 81 Is thought in well posted
circles that exchange rates will not remain at
current high quotations for any great length
OF time.
If large sums Of gold should go out at a time
when the local money market may be called
upon for heavy shipments Of funds to the in
terror money rates would doubtless rule Wen
above the prevailing level Bankers and bor-
rowers are not worried about the situation, and
in the opinion Of the best informed men in the
Street there will be plenty Of money at easy
rates throughout the fall So far the interior
has made no important demand upon this
centre, but IL is reasonable 20 expect a change
IN the movement OF money at no remote period.
An important factor in last weeks money mar
ket was the paVTent bv the Sub-Treasurv NJ
large amounts on account Of gold receipts on the
Pacific Coast. The movement Of gold from the
Klondike is becoming heavy. and II is quite
likely that large part OF the receipts OF the
metal at San Francisco and Seattle will be
available st New-York, the local assay office
Issuing checks here for the amounts deposited
in the Pacific Coast cities. August and Septem-
ber are the heaviest gold receiving months from
Alaska. The local inquiry for money is not
active, and time funds in light demand at
4G4h per cent Loans on purely industrial col
lateral are made at per cent
Discrimination against the industrial shares
as collateral in bank loans is not as severe as
IL was year ago. owing 70 the fact that the
industrial securities are proving their worth
and 20 the fact that bankers are beginning "a
realize that current market values are not the
true measure OF the actual worth OF sound in
dustrial issues. The Industrial stocks OF un-
doubted merit did not share 10 any marked
extent in the bun campaign OF six months ago
As a consequence good g and per cent stocks