New-York tribune., 1902-08-18
THE FINANCIAL MARKETS.
STOCKS IN FAIR DEMAND.
MONEY RATES ADVANCE - RAILROAD
EARNINGS.
THE WEEK X WALL STREET

Of values Efforts were made 10 4nouce hedN!
liquidation on alarnlist statements regarding
the money market, but outside Of the selling py
weak holders little stock came on the market
Legitimate holders OF stocks are not worried
over the monetary situation. There is now more
money in circulation than-ever before on record
The SUPPLY is being constantly increased
through the output of the Western and hlon-
dixie mines, while in case Of actual necessity
foreigners will be glad 10 send gold TO New
York Diminishing bank reserves at this centre
may cause trouble for the stocl market trader
who car not afford to make good depleted mar
gins Investors. however. have nothing TO fear
as declining reserves here are an indication of
growing strength in conditions governing the
actual worth of securities. In times Of short
money supplies at New-York. there is, of
course. more or less discrimination in colIateras
and demands for more margins, factors which
have no effect on general business, and which
do not reduce by one penny the actual worth OF
securities.
The present stock market is being conducted
on a sensible basis, and the good stocks will
doubtless sell high-r before the end Of the year.
Reactions will not result in permanent lower
level as long as business throughout the coun-
try shows stability and healthful expansion.
The money market position presents nothing on
which to base a bear campaign, and the
chances of important declines are therefore eX-
srernely remote. Call money advanced to d per
cent on Friday. The rate will doubtless rule
higher at times and passing small declines in
stocks may be expected. Money goes to the
point where il can be most profitably employed,
and high rates here will, therefore, attract out
side funds The foreign exchange market has
been weak in the last few days under the in
huence of heavy offerings of loan bills and cot
ton and grain bills for future delivery The out
zef b9
the drawing by bankers of sixty 10 ninety day
sterling against loans stock collateral the
proceeds being used in the call or time money
market. At the close of the week sight sterling
was quoted at 4S130a4S740. as against 1850
ssk on Monday. Long sterling closed at
4S4eO64 S5. against 4.S515G CASE at the begin
ming Of the week.
Dealings in stocks last week refuted a ten
oency on the part of substantial traders 10 buy
the cheap and medium priced issues. As a large
amount of money is required TO carry the high
priced stocks purchases of the cheaper shares
sppear more attractive especially at a time
when money is likely 10 rule at higher rates.
Missouri Pacific. which was we'll bought last
week. is still a medium priced stock All the
Gould shares are attractive at ruling figures,
particularly Texas and Pacific and Wabash is
sues Texas and Pacific is earning over per
cent on its stock. In the industrial list
company shares. United States Steel shares
CIorado Fuel and Iron. American Grass Twine
and American Car and Foundry. The last
named stock Will be advanced to a per cent
basis in the fall, and an advance in the price
TO 40 would be justified. American Grass
Twine, which pays = per cent. sells at 60, net
ting the investor nearly per cent The busi-
ness of the company is expanding rapidly, and
as a result earnings far beyond dividend re-
mira ac he brlSi aprS in
dustry that will be permanent there is every
reason to expect higher prices for the company's
stock. which amounts TO S15.0e0o00. Of which
only S130S30O0 is outstanding. Here is an in
dustrial concern that is not overcapitalized.
There many industrial companies that in
proportion TO their business not carrying
anything like the load Of capital that the rail-
roads are carrying. And in many instances the
preferred stocks of solid industrial companies
are just eS safe the first mortgage bonds of
railroads.
In the railroad list St Paul. Atchison, Norfolk
and Western. Louisville and Nashville Chicago
Great Western, Wabash Missouri Pacific, Texas
and Pacific and Colorado Southern are accord
Ing TO market gossip. slated for much higher
prices before the winter. Stocks will continue
TO improve. the bulls say, because of growing
railroad earnings. The theory is well founded
Earnings in all parts Of the country are heavy
past records Of heavy traffic receipts viii doubt
less be broken. James ]. Hill, president of the
Great Northern Railway, estimates that the
roads forming the Northern Securities Company
will earn in the current fiscal year $50 900
gross. against S133 O64. 800 the combined earn
lngs of the Great Northern, Northern Pacific
and Burlington in the year ended June 80. AS the
Burlington road is the largest corn carrier in
the country, its share of the estimated increase
Eil undoubtedly be more than met. For the
fourth week of July the gross earnings Of fifty
two railroads amounted to Sl3.419.S:59. against
EI2 234 t335 in the corresponding period last year,
an increase of SSS3,504, or 1.64 per cent. For
the month of July the gross earnings of sixty
five railroads amounted TO S51.4lS,931, against
SOS, ,3376. 1856 in the corresponding period last
year an increase of S4042, ,595. or 80 per cent.
For the first week Of August the gross earnings
On thirty-seven railroads amounted TO S6,916,-
lo5, against So 6S0334 in the corresponding pc
riod last year. an increase of S295,771. or 4.42
Per cent From July / August Z the gross
earnings of thirty-six railroads amounted TO
S37. 30, ,6SS against S35,524. 40 in the CORE
spending period last year. an increase of ST.
s27.745. or 5.14 per cent.
Reports made 10 the leading commercial
agencies make no gloomy forecasts. Indeed, the
business outlook is bright in all parts of the
nountry- The government crop report SHOWS
that the condition Of corn is two points above
ten year average of 81 per cent. and thirty-two
points above the percentage at this time year
ago Winter wheat is turning out better than
expected while spring wheat averages S9-7 per
rent against S03 per cent year ago, and
ten year average of 50 per cent. Oats also are
in a promising condition, while. matter Of
TACT, all farm products growing in manner
that foreshadows q big yield Based on the
condition Of the crop August /, the yield OF
rorr This wear will be the largest on record.