New-York tribune., 1901-02-25
THE WEEK IN WALL STREET.

THE WEEK IN WALL STREET.
Weakness IN last weeks securities market was
accompanied by q contraction in the volume OF
trading Declines We're made in the greater
number OF issues, but little important Nquida-
ton marked the course Of business. Holders OF
good stocks saw in ruling conditions no argu-
rnent favor1ng the sale Of their securities. In
great part the selling came from professional
sources and from weak commission house trad
ers and perhaps 10 some extent from several
large speculative interests that were anxious TO
accumulate bigger lines at cheaper prices The
general factors governing values exhibited no
change that could be twisted into q bear argu-
Ynent on investments, but certain features OF
the situation presented reasonable grounds for
uneasiness among purely speculative holders
The heavy loss in bank reserves a week ago. un-
certainty over the probable effect Of the pro-
posed steel combinations securities on the mar
ket and an apparent withdrawal Of support
from sneculatIon by substantial market interests
tended 10 encourage bear operations In Stocks
while they discouraged active public buying. AT
times the bear element aggressive, but on
the decline there appeared 10 be an excellent
class OF buying At the moment the bull side
Of the market does not appeal so strongly 10
raanv operators as II did few weeks ago, but
from the investment point Of view securities
have lost none OF their attractive features
The local money market favorable 10 bull
speculation last week. but IL failed 20 attract
any general response in commission house cir
cIes DESPITE the bad bank statement of a week
ago there was no material change in money
rates. while Saturdays statement gave no en-
couraeement 10 the view that higher rates are
sue Higher rates will doubtless develop in the
spring but sust now conditions are not in favor
Of an advance The heavy loan expansion in the
last few weeks has apparently come to an end,
as Saturdays statement OF the associated banks
showed decrease in loans and deposits and an
increase in reserve. The greater number Of the
recent loans are based upon securities that have
been taken out OF the market and which VIII
probably never be available for speculative pur-
poses again. Current loans are connected with
the railroad and Industrial deals now being
perfected. and the collateral against the loans
represents securities bought for the purpose OF
control Already these Issues are being replaced
in the market by securities, as, for IN
stance the new Union Pacific collateral trust
bonds issued for the purchase OF the controlling
interest IN the Southern Pacific company and
the Reading per cent collateral bonds issued
in connection with the purchase OF the Jersey
Central control by the Reading. Investors VIII
buy the new securities ami loans made to
finance the deals will be paid off. Bond offer
ings will restore normal conditions in the loan
market.
OF course uncertainty over the money market
will not disappear entirely, the iron and steel
deal, foreign exchange conditions, tax reduction
legislation and the spring demand for money
are factors that may exert an important infu
ence on rates. The various factors named
possess. however. element Of danger, and
they Will in way upset American investment
values Money is not idle. There is a good
demand for funds in connection with the prog
ress Of American industrial prosperity. and the
chances favor continued activity in money for
many months TO come. The foreign trade situ-
alton is running heavily in our favor and gold
exports. il made. VIII merely represent an exten-
sion Of American credits abroad. At the mo-
rnent foreign money conditions show great i'm
provement, especially in London. where the
Bank Of England's rate OF discount has fallen
from to per cent, while the proportion OF
reserve TO liability has risen 20 80 per cent In
the last statement of foreign trade there was a
hig gain January. 1900. but the increase
was due almost entirely TO cotton exports The
fact that exports of manufactures did not in
crease, together with the evidence Of a de-
termination OF foreigners to enter into a more
aggressive competition with America in manu-
factures. suggests 10 some minds the possibility
of a change TO less favorable conditions in for
eign trade While the exports OF manufactures
dld nOt increase IN January, II should be borne
In mind that comparison was made with a
month which TO that time had never been ex-
ceeded in corresponding period in the exports
OF manufactured products. The success of this
country in manufactures will. OF course. stirnu-
late other nations 10 follow our lead but there
is practically no chance that the United States
will ever lose its position of creditor nation
Annual reports and monthly and weekly reports
OF railroad earnings received last week made
hatter1ng exhibits in almost every instance
lraoe returns as reported by the leading COM
merciai agencies indicate a satisfactory situ
alton IN about every line of industry. The ger
eral outlook is promising. Wall Street &c ,ooro
interested. however, in the terms OF ,ha h,
steel combination than 1T is in the progress ot
trade and until the effect of this deal uno,
money and stocks develops speculation ,n 80
curities is quite likely 10 be irregular ana mn
certain. The bank statement for last ~,
ought TO exert a favorable effect upon nrioes a.
tO-day's market.
BANK EXCHANGES; SALES RECORDED