New-York tribune., 1901-05-27
BONDS.
rHE wEEK,s oPERATIoNs Isl sToCKs

THE WEEKS OPERATIONS IN STOCKS
The course Of stock market trading in the last
week was accompanied by an important falling
off in the volume OF business. as compared with
the recent enormous records, and by fluctuations
IN prices that reflected little more than traders
operations Dulness was the characteristic feat
ure of commission house DEALINGS Uncertainty
as to the future movement Of values was the
chief factor in speculative discussion, and as
consequence trading was generally confined 10
quick turns on both sides of the market In
vestment buying, however, was reported on a
moderate scale. especially in the shares that
are selling under their intrinsic valuation. In
vestnlent conditions have not changed Bull en-
thusiasm has been checked and public specula-
tors have been too badly damaged 10 return 10
the market at once. but influences affecting the
real worth Of securities continue to move in
favor of stability in securities prices. Efforts
10 reduce values have not brought out any i'm
portant amount Of stock, and it is therefore be-
neved that the greater part of the supply Of
stock available for speculation has, for the time.
been withdrawn from the market While nu-
merous declines in values took place last week,
the lightest demand was followed by sharp ad-
vances.
The public got out Of stocks in the panic
period. Strong financial interests were forced TO
buy securities for their own protection, and al
though a part OF their surplus holdings have
since been distributed the chief supply OF
curities is in the hands OF powerful capital
lists Predictions regarding the future of the
market are not safe, but there is every reason
for encouragement and bullish expectations in
the general position of affairs in the country.
Conditions governing the actual value Of stocks
and bonds are intrnsically sound. Railroad
earnings are heavy, bank clearings are large and
the industrial undertakings throughout the
country are prosperous. Crop reports are prom
Using. Foreign commerce is heavily in favor of
this country and the balance of credits held by
the United States abroad is by no means liqui-
dated. Efforts made last week to prove
that our favorable trade balance had been
wiped out, but the testimony Of competent
Judges showed that substantial credits stin exist
Most Of the bills that have recently been drawn
in the foreign exchange market have been for
the account Of Northern Pacific operations. The
balance in Berlin and London in favor of the
United States is large, while Paris is not a
factor in the situation. Large sums OF money
have been sent abroad from New-York in con-
nection with the Northern Pacific affair the
significance of which is that New York has been
advanced 10 a commanding position of interna-
t.onal financial influence Doubtless Europe has
OF American securities. but no We'll informed
banker Will say that the foreign indebtedness to
this country has been discharged. Money mar
ket conditions are apparently moving in the
direction OF ease in lending rates in New-York
The various movements in securities last week
were not significant Of important developments
anecting railway companies, save in the So
called Gould shares. in which speculation was
based upon the expectation Of a big consolida-
oF IL,
TO the East Reports that the Gould and Rookie
feller interests had combined TO fight the Van
derbilt and Pennsylvania control of the Eastern
railroad situation were irdustriously circulated
but little attention given the rumors in
banking circles. 1t is evident that If the Gould
combination wishes TO secure an Atlantic coast
outlet il will only he permitted do so through
the extension of the railroad harmony and con-
centration OF control scheme The talk that Mr.
Gould has secured the LackaWanna is not taken
seriously. as Vanderbilt interests already con-
troll the road Mr. Gould may have secured some
Lackawanna stock, but it would cost him 500
100000 10 buy majority, providing enough
holders could be found sell And then the
theory that the Gould interests are trying to
get the Erie is equally silly. Railroad control
prospects as regards the Missouri Pacific in
Volve, according 10 Russell Sage, a line from
the Atlantic to the Pacific; but the chances are
that this route will amount TO little more than
an interchange Of stock among the Gould roads
anc some OF the Eastern lines, with a traffic al
hance. Railroad conditions in the Southwest
are improving, but stockholders Of the Missouri
Pacific and Missouri Kansas and Texas are
exceedingly disturbed with a long delay over the
payment of dividends. Perhaps Missouri Pa
cicifc will declare dividend in July but there
Us no official basis for the conjecture
Urgent buying Of Northern Pacific on Thurs
day apparently marked the end OF the trouble
in this issue. sharp advance I'm the stock had
however. bad effect for time on the general
market, but the strength Of underlying condi-
tions prevented any serious reduction in values
People who now part with good American
securities will be losers by the operation Many
OF our railroad shares and most OF the industrial
issues are selling under their actual worth and
unless the country takes big step backward in
its industries higher market values are likely to
DE seen again this year Prosperity has not
broken down. and labor troubles are merely
incidents OF business progress
III the stock market were not so dull the heavy
increase In cash and reserve holdings as shown
Dy saturdays bank statement might be ex
pec'eo 10 exert a striking effect on prices Re
serve above legal requirements increased nearly
>e'ooooo TO $21 .2Ss,975. as against sls.s12 325