New-York tribune., 1901-05-06
BONDS
High Low May 4 Apr.26 on ges. Sales.
THE WEEK IN WALL STREET.

THE WEEK IN WALL STREET.
The advance in stocks continued at furiou.
pace the greater part of the week on volum,
Of business never before reached in the history o.
Wall Street. New price records were made II
many issues while the general level of values OF
the more active stocks was higher than ever be-
fore known. In all departments Of the market
activity prevailed. It extraordinary
market based upon extraordinary conditions
The declines on the last two days of the week
offset much Of the earlier Improvement. but they
failed TO shake speculative confidence in the
market. Technical conditions caused the reac-
ton The setback was needed. and while it car
red heavy losses to oyerenthusiastic bull traders
it strengthened the speculative situation and
paved the way for further upward movements
There was nothing new or novel in the weeks
news affecting the value of securities, the move
ment on the Exchange being due TO the factors
which have for so long a time supported values
Factors outside the Stock Exchange have
prompted unusual financial transactions and re-
markable railway deals Conditions in the
country at large have warranted huge under
takings that are reflected in securities opera
tions as for instance. in the advance in Bur
lington, Union Pacific Atchison and other
stocks. Enormous market transactions for the
account OF the interests behind big railway deals
have been accompanied by heavy speculative
buying from all parts of the country, from
Canada and Europe, and as a consequence the
Stock Exchange has become the most active
business mart in the world. The danger flag has
been repeatedly run up by cautious observers.
but each reaction has been followed by increased
advances, by a buying movement that has swept
all obstacles TO higher prices aside. Every one
asks when it will end but save Russell
Sage dares TO venture prediction And per-
haps Russell Sage is pessimistic because Of his
outstanding calls"
At the close Of the week some observers saw
In money market conditions signals OF per-
manent change in the movement in values.
Heavy exports OF gold TO Europe, lighter receipts
Of currency from the interior and a large loss
by the banks to the Sub-Treasury caused a
firmer tendency in local money rates, and on
\ Thursday and Friday contributed to heavy lqui-
81 dation in stocks 1t is well bear in mind that
the record breaking speculation in stocks has
so far been conducted without any strain upon
the money market. The banks have not been
large lenders for stock market purposes, and
unless calls upon their resources become urgent
there will be no cause for worry over the specu-
lative situation. Much Of the buying in stocks
has been outright" and for investment ac-
count. Then enormous speculative deals for
Western interests have been financed by West
ern money, the supply OF which appears mex
haustible. The season Of heavy Treasury with
drawals is nearing its end. and further consid-
cradle gold exports are not expected. In view
OF the transactions that are taking place in the
stock market, the local money situation is
stronger than any one would have predicted a
Few months ago. Higher rates may check
speculation for a time. but it does not appear
probable that the bull movement will run its
course until all the large railway and industrial
deals now pending have been successfully ef-
fected.
II Is rich mans market, and the ordinary
operator ought 10 remain away from speculation
until the current revel is at an end Bear trad
crs are in a minority at the moment but their
day viii come. whether or not conditions af-
1ecing values change. Stocks cannot advance
indefinitely. and the theory that whatever goes
Up must come down is just as true Of the cur
rent market as it has been of any market in the
past AT the moment, however. II takes a cour-
ageous man TO sell The market short. MANY
railroad stocks too high Other railroad
stocks and most OF the Industrial issues are
sun selling under their intrinsic worth A frr-
tner decline may come before the latter named
class moves materially higher and barring ad-
verse developments in the business world het
ter prices should be made in the low r,riced rs,1
way and industrial securities IN the ooursa ~,
the next few months. With the exception of the
NA4eeo states steel shares, the industrial fssuas
nave failed TO enjoy the benefits of the bull
speculation. III conditions remain favorable n
Is hkeiy that the industrials will find popularity
Mneh uhe current railway speculation is ovar
ii'ousrlai shares represent the industrial ac
uNlues or a great and growing nation. The ra,I-
roaas cannot be prosperous without nrosner,+,
IN INDUSTRIAL circles. and appreciation in roiI.
roao STOCKS Is based upon the very factors ,h..
aoo worth 10 the value OF Industrial ses.,r,.,
Union Pacific sold above 100 last p,a.,, -
Do a year ago. Atchison. Northern Pac,ac D.
lsiano' ST Paul and many other shares 80
new high records. Advances OF from, x >, 10
points In day were common. while An tho -
OF Union Pacific and Atchison dealings amo,,r.as
TO upward OF 6oo'oo0 shares for several s,rs,a
Gay transactions. Operations of this cbaraot.u
reflect something more than speculation rrbe,,
reflect contest between financial giants FOR
control 1t is generally believed that the Van
oerbiit Interests are now in control of Union
Pacific, and that the Pennsylvania has secured
the Atchison- These combinations. il would
seem, have been practically forced by the
change in the railway map made by the Gree.
Northern-N Northern Pacific absorption of the
Burlington. St Paul and Rock Island will NOT
be left out OF the plans Of railway fnanciers
and the opinion that these two roads are out in
the cold may well be revised at once III thA
rlef cCntfp tecet