New-York tribune., 1902-04-21
THE FINANCIAL SITUATION.

A
a ivancing prices marked the course OF wan
Street business in the last week Inc carry
snacuiation in Louisville and Nashville encour-
aged active operations for higher prices through
out the list while later on in the week the
movement of the stock named threateheu ~
upset speculation after the manner OF ln0
NORTHERN Pacific corner of May 9 a year ago
Fortunately a corner in Louisville stock was
avoided The Gates crowd, apparently having
overreached itself appealed to the great mouse
of Morgan for help. and in short time situ-
alton that promised distressing trouble was au-
1usted without the slightest disturbance The
fact that the Louisville affair was so easily
handled created renewed confidence in specu-
,atiye and investment circles. and before the
close Of the week bull operations on a large
scale were under way. Commission house pusl-
ness enlarged and although realizing sales were
heavy the market showed remarkable power
of absorption and increasing breadth DeNeiop-
rnents in the week affecting the actual worth
of securities were generally favorable reports
from trade centres were especially encouraging,
while crop conditions presented marked I'M
movement over the conditions as reported on
Arril 1 Official advices from different railway
managers in the winter wheat belt reflect the
belief in that section that the winter wheat crop
WELD will be above the average.
The railroads in the West and Southwest are
Nm, d;snosad 10 worry over crop possibilities,
owing TO the growth Of general merchanolse
traffic in their territory in the last few years
On the Santa Fe missouri Pacific, Texas and
Pacific and other Southwestern lines trainloads
are enormous and in most cases the volume OF
business offered is greater than current car
canacitv As a consequence of the increase IN
traffic in the last two years, railway equipment
has been largely added 10. and current orders
at car and locomotive building companies run
for many months ahead. The American Car
and Foundry Company and the American Loco
motive Company for instance. have enough or
ders on their books at present to keep their
works busy well into 1903 without additional
contracts Railroads entering Chicago report
an enormous volume of westbound traffic. There
is a heavy demand throughout the West for
manufactured articles, and the movement of
This kind Of freight is heavier than ever before
recorded. Indeed the traffic is so heavy that
congestion is developing at various distributing
points Prosperity in the iron and steel indus
try is indicated by the large shipments Of rails
and structural materials all over the country
and by the contracts for iron delivery as far
ahead as April. 1903. II fact worth record
ing that the United States Steel Corporation
recently placed an order for 22a,000 tons of Bes-
semer iron 10 he delivered between October ].
1902 and April J. 1902. at a price lower than
the price of No. > foundry iron for delivery this
year. The maintenance Of a reasonable level OF
values in the iron and steel industry is an en-
couraging sign of the times and it Will prove
powerful factor in prolonging the present ac-
tivity in this line of trade.
Strong financial interests who familiar
with conditions throughout the country are buy
ing securities The men who have studied the
industrial situation in the United States are
willing to accumulate stocks and bonds for in
x-e-t,,,epf crac1laffya account high
priced issues although selling at a level which
fairly measures their actual worth. will doubt
less do better but it is the cheap issues that are
likely TO make the largest gains in the course of
the next twelve months. Increased operations
should develop in the low and medium priced
railway and industrial shares, these issues
offer attractive opportunities for investment and
speculation. 1t VIII doubtless pay to watch
Wabash common. Wisconsin Central and Kansas
City Southern issues Detroit Southern, and In
the industrial list, American Grass Twine. the
American Locomotive shares. American Car and
Foundry preferred and other securities that rep
resent solid money making institutions
Wabash securities are in demand and il is evil
dent that current buying foreshadows develop
merits that will exert a favorable influence on
the actual value of the Wabash stocks ana
bonds. 1t is generally believed that the de-
benture bonds will be retired. and that 4 per
cent issue viii be put out instead The de-
benture Bs are entitled 10 per cent. and, Of
course the substitution Of a per cent bond
will bring the preferred stock nearer to the
dividend column 1t is likely that the Wabash
company will come in for favorable public at
tention in a way other than that involved in a
possible readjustrnent of the roads bonded debt,
and fer this reason many operators are buying
the common stock with a view of large specu-
istive profits.
rnerce in March. as published in the week
showed as expected heavy falling off in ex-
ports as compared with the same month year
ago. dle almost entirely to the reduction in the
outward movement Of breadstuffs and cotton.
In March 1901 exports amounted in value to
x124 73643 while for the month in the
current year total exports were in value
S1O6 3601.s0 As the shipments of breadstuffs,
cotton and provisions were in value SIS, 100. .5y1
less than year ago. it will readily be seen that
the country's exports of manufactures not
declining In spite of the decreased exports Of
the products named and increase in imports
of upward of SsOOoOOo. there was an excess Of
merchandise exports in the month In value OF
500 4G6475 making from July ] an excess OF
exports OF x40o 237 131 The fact that small
crops here last year and fair crops abroad have
caused falling on in domestic grain shipments