New-York tribune., 1901-07-01

Adverse incidents of purely local significance
did not upset the stock market last week, al
though they induced quieter speculation, and
on several days recessions in values. Losses
made were not important, and, a rule they
were recovered in great part before the close.
General sentiment continued bullish. The fall
ure of a bank and a Stock Exchange house
were not due TO factors affecting the general
situation, and the advance in money market
rates was. significant Of adverse conditions.
A thorough understanding of the causes con-
tributing TO the bank failure prevented serious
liquidation in stocks. while the quiet condition
of the speculative market and the strength of
the technical position of speculation served to
offset the rise in money effective influence
on values Money advanced to 10 per cent.
closing the week at 6 per cent. No trouble is
exnected in the money market this month. while
the chances that rates will soon grow easier
under the influence Of continued receipts from
the interior, the reduction in war revenue
taxes and the return TO the market of the vast
sums to be paid out to-day on interest and
dividend account
Despite the dilgent efforts Of professional
traders 20 create bear sentiment last week the
course of values reflected no response from pub
,;c sneculators and investors. When prices fell
off trading grew dull, and after every decline
prices advanced the slightest demand 1T
was evident in the week that substantial opera
tors were taking advantage Of the markets dull
ness TO accumulate line Of stocks for use Wnen
hull activity is again resumed The theory that
h,eber nrices will be made this year is based on
the trade and money situation, on the eHpec1a-
tion of large crops and on technical market con-
a;,,o,s As to the crops all indications point
-o,yard a bountiful harvest. According 10 the
latest crop advices from Europe the needs OF
France and Germany alone will require heaVy
buying OF wheat in the United States as snort
crops are expected, especially in France Where
The total Weld is likely to fall below three nun
ared million bushels In addition to the brilliant
rrosnects for the agricultural community in the
Tinted States there is every evidence OF coh-
ttnued prosperity for the American manufact-
urer.
Railroad earnings continue to show surprising
GAINS and railrSS.pSd prosperity appears assured
for many months TO come The policy OF mar
rnony among the various properties is moving
along quietly. but none the less safely railroad
managers are striving to operate their roads on
an economical basis. but at the same time they
are not neglecting the physical welfare OF lhe
properties. Improvements are being mace ou'
of earnings and operating expenses for the great
er number Of roads reporting in May refect the
nolicy of putting earnings into the property,
espectally in the Southwestern roads, where. OF
course, large expenditures are absolutely neces-
sarv The Southern Pacific. for instance is
showing enormous traffic receipts. but the condi-
ffon of the road is such to require heavy ex-
penditures for months to come In May the
gross earnings of the Atchison system increased
s7ss 442 while operating expenses increased
s529 O32 as compared with the same time in
Nav 1900. Net returns for May have been ex-
ceptionally encouraging on roads in all parts OF
the country Of the Eastern roads Erie made a
most fattering exhibit. This property shows the
results of good management and heavy traffic.
1t is estimated that dividend and interest dis
b1rsernents due to-day will amount to more than
s1250OOOO0 A good part OF this amount will
doubtless seek reinvestment in the securities
market, and if this proves to be the case ma
teriaI gain in market activity will take place.
Industrial stocks of merit ought to receive at
tention in the next bull movement, the greater
number Of issues are selling at a level that
comes very far from measuring their Intrinsic
worth In the traction group Brooklyn Rapid
Transit and Twin City Rapid Transit are likely
10 become favoritcs. Brooklyn Rapid Transit
may not pay dividend this year, but the posi-
bilities Of the company recommend the stock as
one Of the prime investments Of the future.