New-York tribune., 1901-02-11
BONDS
rur wEEK.s oPERATIoNs IN sToCks


THr WEEKS OPERATIONS IL sToChs'
e,-e,q+b and activity marked the course OF
securities values last week The demand i"
stocks and bonds was heavy both TOT sleou'0
tive and investment account. while the seiiliis
MAS anparentIv in great part realzihs ia''''
49, investment liquidation. The influence oI
the preceding weeks railway announcement
mas factor in the course OF speculauoh 'i4a'
- orII exceeded in effect by the news that
efforts to secure the Carnegie holdings IN the
carnegie Steel Company by interests identihea
with the other big manufacturing ana proou'-
ing steel and iron concerns had been success
.,1 Then the ease in the local money market
contributed 10 the buoyancy- No gold was en-
gagged for export in the week, and easier ols-
counts abroad were taken as indications IN some
ouarte-s that the necessity for further exports
~ gold from here had passed. There were
however many bankers who thought that the
easier tendency in London would not hola ana
that the lower rates by the Bank OF Englaho
had been made TO facilitate the launching OF the
new British loan. The same bankers believe
that a good part Of the loan viii be placed IN
this country. In this event eXchahge VIII
doubtless strengthen again and go TO the
eols export point The supply of commercial
last week was due in part 10 selling Of exchange
nv arbitrage houses on account Of London buy
ing in the local stock market and 10 the de-
= cline in London discounts.
Active buying of the low priced stocks and
issues that have long been inactive was proni-
( nent feature of the week. In some quarters it
was thought that the activity in these shares
reflected the approach OF the end Of the bull
market but majority opinion against this
theory II is not denied that reaction is due,
but the greater part OF Wall Street continues
buIlish with no indication OF changing its po-
sition in the market Yet awhile. Whether or not
stock values fully reflect az the current level Of
prices the Importance and value Of recent devel-
opments in the railway and industrial field is
q question that IS open 10 some dispute. but
from the character Of present buying Of securi-
ties IL may be assumed that the greater number
OF people believe that quotations do not measure
the value OF industrial and railway changes. The
trade results that are expected 10 follow the
Morgan -Rockefeller-Carnegie steel deal are
easily appreciated by Wall Street operators and
the public in general The financial end Of the
transaction, however is not so clear. II is
certain that there will he no billion dollar COM
bination. and that. originally announced I'm
The Tribune, the sole idea OF Mr. Morgan and
his associates is 10 strengthen the steel and iron
industry a.
ownership policy similar 10 the same policy that
has proved so successful among the railroads.
Harmony in the steel trade is promised. When
one bears in mind the Importance Of the steel
and iron Industry in the United States, the bear
fng IL has upon other industries and its position
as a factor in international trade. may
easily be pardoned for saying that IL will take
more than the present advance In securities TO
measure harmony in the steel and iron trade.
Strength in bonds a notable feature OF the
week The investment demand for the cheap
issues was heavy. but, OF course the purely
speculative demand was heavier Income bonds
OF properties such as wabash, St Louis South
western and Mexican Central were actively
sought ny spectators, while investors took con-
siderable amounts of Southern Pacific As and
other good and ) per cent issues that
stiu selling at bargain figures. The character
OF buying certainly indicated intense confidence
on the part OF public operators in the future OF
the market-conhdence in prolonged bull
movement and an ultimate price level many
points above the best so far recorded. There is
no diminution in bull enthusiasm because all
conditions are favorable TO bull speculation.
Money is easy. The course of business IS
couraging. railroad earnings heavy and
bank clearings large No political or financial
cloud is in sight The bear element has no am
which for speculative reasons is due. but it
1inds in conditions governing real values no in
ducement for selling securities short.
The steady appreciation in the market value
OF railroad securities is justified by the increased
dividend returns which many securities are
receiving. and by the gain in earnings which is
confined 10 roads in no one part OF the country.
Net returns for December received in the last
two weeks have been extremely gratifying. The
Pennsylvania road, which runs through terri
tory representing many varied interests fur
nishes in its December report and its statement
Tor the year evidences OF the rernarka-
ble prosperity OF the railroad interests in
fhis country For the year the increase
ia gross earnings the lines east OF
Pittsburg amounted 10 sl2. .653. 200 following
an increase in the preceding year OF over ST.
+, 100000 Roads that two years ago We're con-
3idered hopeless as possible future dividend pay
ere are now returning earnings that mean diVi-
.6ends at no remote period. Even the big Atchi-
con system year ago gave no indication that
n dividend on the common stock was probable
On its heavy capitalization the road is now
earning an rate equivalent TO 4 per cent on