New-York tribune., 1901-05-20
THE WEEK IN WALL STREET.

THE WEEK IN WALL STREET.
Wall Street affairs have returned to a more
normal basis The panic Of May left big gap
in many peoples pocketbooks but II did not
iniure the underlying strength of the market or
force a liquidating movement involving sound
investment holdings OF course. there were
some instances where investment holdings We're
sold 10 offset losses in speculation. but as gen
eral rule the investment part Of the Wall Street
markets was not disturbed. The fact that con-
ditions outside the Stock Exchange were SO
strong together with the purely speculative
character OF the panic. made a recovery easier
than would have been possible had conditions at
large been different. And the ease with which
the readiustment in speculation is taking place
testifies 10 the remarkable position OF American
trade and finance The recovery in stocks last
week was not accompanied by resumption OF
the furious bull activity that marked the course
OF trading prior TO the panic but there was.
however an excellent class of buying. with in
vestn1ent purchases conspicuous features. In
the early part Of the week the market was soft
under the influence Of liquidation, while at the
close prices advanced under buying orders for
both accounts.
The general course of the market did not give
any indication that the enormous volume Of
business of thesrecent bull boom would be re
sumed at once. Indeed. the market was COM
paratively dull. although in few issues large
transactions were recorded. Conservative in
terests do not wish 10 a return'of conditions
which prevailed before the panic. The health
of speculation will be better without boom.
hut the vast amount OF capital in the country
may however. be responsible for another big
movement in stocks before the summer is over.
At the moment the public is fighting shy" Of
the market, and predictions that IL will return
with he ~
few months out OF place at present. Many
Of the people who. are now in the market rep-
resent the element that sold stocks many
months ago. and that had been waiting for a
smash in values TO peEew fits interest in specuIa-
tion. Banking and railway interests identified
with the great transportation lines Of the
try Were prominent. factors in last weeks trad
ing, their presence in the market not only re-
fecting confidence in xhe higher financial circles
in the stability Of general conditions. but a
restoration of amicable relations among the
powerful railroad andt banking concerns whose
recent differences threatened 10 upset the gen.
eral investment situation. The Northern Pacific
and Union Pacific interests have settled their
troubles and unless unfavorable developments
arise the community OF control idea will make
further progress for the.good Of American rail
roads and American railroad investments
Northern Pacific stock TO entitle IT to a voice in
the Burlington deal. This ownership of stock
insures the protection OF the Union Pacific and
ST. Paul Interests in the acquisition OF the Bur
lingtOn by the Northern Pacific and Great
Northern, while, IL increases the actual worth
or all the securities concerned. A week ago II
looked as if the community OF control scheme
had received its death blow. but the good sense
OF the warning railroad fnanciers brought peace
and order 10 a situation of serious confusion
The moderation that prevailed here was fol-
lowed by a similar, attitude in London on the
part OF the controlling powers at that centre
and that which promised TO become panic on
the London exchange developed into an orderly
readjustment OF speculative accounts
The general situation is intrinsically strong
There is just much money in the country as
there was before the panic. trade activity has
not been checked. and investment values have
not been weakened. Gold exports in the week
were not indications of adverse local conditions
The money market position abroad and the rela-
lively easy rates in this country were respon-
sible for the outward movement OF the precious
metal, which amounted TO over s.. 100000 In
sending this amount OF money the New-York
banks did not weaken their holdings as receipts
Of currency from the interior were about three
times as much the shipments OF the yellow
metal.
Another favorable foreign trade report was
published in the week. showing for the month
OF April a balance in this country's favor of
over si4.oo0ooo. Exports OF merchandise in
the month named We're heavier than in anv
corresponding month on record amounting q,
value 10 nearly Sl2l.OO0 900 an unusual record
tor April, which is ordinarily one Of
the large exporting periods. With foreign
trade Of current proportions there need be NO
teaF over the position Of the money market i'm
the United States. In addition TO favorable for
elsn commerce, railroad earnings bank clear
lnes ana all other indications OF Industrial ec
nNity continue to show a rena rka BILE condi,io,
OF indnstrial prosperity. Crop conditions are
also good, and with the exception OF labor die :
turbances in various parts of the conntry ~
situation is replete with encouraging fac,ors
some stocks measure at current Quotations tbair
actual value, but there is room for much i'm :
provement In the greater number of issnas
This is especially true in the preferred in
oustrial shares and the cheaper priced rsilroaa
securities. The industrial stocks held UP well in
the recent slump and at present ouotatsons
they certainly are not dear.