New-York tribune., 1901-10-14
BONDS
High Low. loct.l2 loct.6 ch'ges Sales.
THE WEEK IN WALL STREET.

THE WEEK IN WALL STREET
In the closing days Of the week Wall Street
sentiment became more cheerful and in place of
gloomy thoughts and predictions. optimism de-
Veloped in most quarters of the speculative COM
Inunity. There was no news development re-
sponsible for the change. Reports, however, Of
a Northwestern railway deal. involving North
ern Pacific. Great Northern and Burlington.
served TO sharpen the public appetite for stocks.
The interests back OF the properties named are
loaded with securities that they evidently desire
TO distribute, and some scheme is doubtless un-
der way by which the dear public viii be per-
rnitted 10 share the burden Reports of this
character came at time when the market had
been sold TO a standstiIl and when certain mar
ket interests had decided to support the market.
Buying by the last named caused an active COW
ering movement among the shorts. prices ad-
vanced sharply, and commission house traders
were more disposed TO buy for a rise. While
there was factor in the situation. there
was a money market development that tended to
induce renewed bull operations in securities.
This development was not extensive in charac-
ter bun IT served TO furnish line the proba-
bic future course of the lending market. A
perceptible easing in rates. freer offering OF
money and liquidation of heavy loans made by
the city in the spring led 10 predictions that
there would be disturbance in money and
that the strength of sterling exchange and the
inability OF the country 10 import gold from
Europe would not cause disturbance in the local
market.
1t may be too early TO make optimistic pre-
dictions regarding the money market. The in
terror demand is not yet over. and the general
prosperity Of the country may prolong the de-
rnand this year beyond the usual period for its
cessation. In connection with this IT should be
borne in mind, however. that the shipment Of
money to The West and South is purely a re-
Election OF the country's business progress, and
ii is therefore a bull argument on investment
holdings. The course Of money will be watched
with particular interest IN the Of the month.
but there is no reason to suppose that banking
circles viii feel any uneasness over the posi-
ton Of the market Bank reserves are large
enough TO handle all current legitimate de-
mands. while in November the return flow OF
currency 10 this centre should bring to this
market an amount OF money sufficient TO reduce
rates and TO encourage active Wall Street oper-
ations in stocks. The money situation abroad
does not encourage the idea that gold may be
imported by New-York this fall, while the con-
dition Of the Paris market suggests that that
centre may be drawing gold from London.
Speculative sentiment was helped somewhat
in the week by the advance IN the dividend
rate on the common stock Of the Atchison To-
vestors however, were not so well pleased with
the action, as it was considered Ill advised at
a time when the roads traffic may be seriously
reduced through the corn crop failure. II is
true that the road earned last year over per
cent on the common shares after per cent
on the preferred, but IL should be borne in mind
that all years will not be productive Of big
traffic receipts as the last year was, and that
there may be some years when the company
viii have big proposition on it's hands in
paying interest charges of S7,S30.S11, preferred
dividends Of S5,70s. $50 and common dividends
Of over 100000 The Atchison officers how
ever, are confident that the company will be
able TO maintain the rate and they, more
over assert that the outlook in that part OF
the West which is traversed by the Atchson
lines is so bright that the loss on corn traffic
viii be made up by a gain on an increased
wheat and general merchandise movement The
various railroads reporting in the week showed
substantial gains, q rule, over last year. and
even the Brooklyn Rapid Transit report was
much better than expected The shares OF any
company that carries 3e4. .l52.035 passengers a
year ought TO become sound investment issues.
In 1884 the Brooklyn car lines carried 1o4.oo0,-
600 passengers, as against the figures quoted
for the last fiscal year. Traction shares. like
Industrial shares. are not in popular favor at
the moment. but they may prove TO be good
securities 10 hold.
IL the advance that started on Thursday means
a sustained bull movement. the cheap railway
shares and the attractive industrial issues will
doubtless enjoy a share Of speculative attention.
Recent developments affecting some industrial
shares have hurt the whole industrial list. but
the actual worth OF the first class stocks has not
been reduced. Trade reports show that the in
dustrial position OF the country is sound. There
is no let up in trade activity. and in the iron
and steel business demand exceeds supply. while
the capacity OF the works is booked for many
months ahead Opinion differs regarding the
probable course Of the securities market in the
rest OF the month. but there is well founded
belief that Wall Street will enjoy another period
OF stock market buoyancy In the course or the
next six months. Opinion OF course. is based
upon the expectation that current business con-
ditions will suffer radical adverse change.
Bonds are becoming more active. An active
business in bonds generally foreshadows a bull
market in stocks. and in the present case it is
believed In many quarters that the increased
business in railway mortgage issues will be fol-
lowed by heavy buying Of railway shares. The
bank statement issued Saturday showed a sub
stantial gain in cash and reserve holdings the
reserve rising 10 S74s3175 against 81. .463 975
at this time last year, and $1,177,350 In 1900.