New-York tribune., 1902-05-12
BONDS
fIIen I.a~. May 10 Ma c-h-gs saIee.
THE WEEK II WALL STREET.

THE WEEK N WALL STREET
Developments in the week affecting stock
market values were influential in restricting
trading. while bringing about 4 generally lower
Jewel Of prices on the greater number II days.
The week began with collapse in a number
of shares that had been advanced to fictitious
prices ana ended with an anthracite coal strike
announcement. In addition To these unfavorabl
factors the money market was against bull ac-
-tivity in stocks. Influences Of a permanent
character we're. however. favorable to the ad-
tvocates Of higher prices, but Of course, for the
time the strength Of the general situation was
tovershadowed by the temporary unsettIing
events of the week The fail Of international
Power stock in the preceding week prepared the
Street for other sensations. and the breakdown
of the so-callcd Meyer syndicate was, therefore,
not complete surprise TO careful market OBJ
servers. The International Power episode and
Abe Meyer affair were wholly Of local signif-
canoe. They were not the result Of conditions
affecting values in general, and their influence
on stocks can only be temporary.
The stock market situation has been vastly
improved bv the pricking Of certain industrial
bubbles Liquidation that developed in the pre-
oeding week and continued with great force on
Monday of last week brought out many weak ac-
counts that subsequently passed into stronger
hands. Moreover the end Of the boom in worth
less securities strengthened the situation by
causing action by the banks 10 check reckless
speculation. The weak commission houses and
the shoestring traders were convulsed with fear
on Monday but the conservative banking houses
and intelligent operators in securities
tirely satisfied with the course Of market values
and the disturbance among the bubble cOmpa-
piss Liquidation was purely speculative In
vestnent holdings were not thrown on the mar
ket and well margined owners not dis
turbed. There are many sound industrial
shares. and the developments % the last few
days ought not to prejudice intelligent operators
against them.
The decision by the Goa! miners to take rest
from lab Dor which is bringing them better wages
than before in their history comes at a
I when the coal companies can best afford
not 70 give in To the miners demands The
summer is an active season in coal. In
the present case the producing and carrying
companies have enough coal on hand to meet
all trade requirements without advancing the
price To the consumer. but. Of course. the con
sumer need rot expect that ne will be forced
10 pay higher prices as the result Of the strike
AS 10 the anthracite coal stocks there is only
one opinion among careful market judges 1t
IS that the coal stocks always a purchase
or the declaration Of a strike. The companies
will have no heavy wage bills to pay if the
strike continues while they will continue 10
Sell coal already mined. If the strike came in
the fall or winter season the effect would be
harmful to the companies, while its influence on
the general situation would be greater than 1t
be at present.
Gold exports VIII doubtless be made when
money rates rule 1T a lower level In the last
week call money got as high 20 per cent al
though the average rate was under 10 per cent
Regarding probable gold shipments. 1t is well
20 bear In mind that, while this country has
merchandise trade balance in its favor, credits
on this account have been more than offset
by the heavy borrowings Of American bankers
in Europe. In addition 10 the influence named.
the large investment Of American capital in
foreign enterprises. expenditures Of American
travellers and undervaluation Of imports have
served TO place this country in debt TO Europe.
But the debt easily be paid. Legitimate
conditions responsible for the present posi-
tion of the international exchange market and
the strength IN exchange reflects the wealth
and prosperity OF the United States The enor-
nous financial transactions Of the last few years
have been helped by foreign capital but this
capital represents loans rather than perma-
nent European investments here Money mar
ket conditions are sound. despite high rates and
low bank reserves The volume Of money in
the country is increasing. and our production OF
gold in Colorado alone will more than pay our
years debts abroad.
II is hard 10 find unfavorable factors in the
general industrial situation. Railroad earnings
for April show in the aggregate a gain in gross
receipts Of over l6 per cent, compared with
the same month year Traffic in all parts
OF the country is remarkably heavy. and I'm the
West and Southwest records are being
made. Despite the enormous falling off in
viii end their fiscal periods with largely in
creased income accounts as compared with
year ago. The outlook for a continuation Of
the current heavy volume Of business on the
railroads Is promising Industrial activity pre-
sents no indication OF reaction Crop prospects
are not especially promising for the winter
wheat crop. but conditions so far have been
favorable for spring wheat and corn planting