New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-07-28
THE FINANCIAL MARKETS.
STOCKS GENERALLY HIGHER.
CONDITIONS AFFECTING VALUES FA-
VORABLE FOR THE BULLS-RAIL-
ROAD EARNINGS
THE WEEK IN WALL STREET.

Eponse TO the operations OF powerful capitalists
md public traders despite the apparently never
ending assertions by many pessimistically in
cIined individuals that prices too high, and
that each successive advance will be the last.
II should be borne in mind that the operations
OF the big capitalists are based on conditions
governing the actual worth of securities Prices
are not moving in their present course because
of pure manipulation. Manipulation doubtless
is employed TO help the advance. but values
will soon crumble If there is substantial
ground for the rising tendency. The funda-
laertal position os the stock market is intrinsi-
cally strong for If il We're not values would
long ago have declined for lack of support from
investors and capitalists. In view of the condi-
lions underlying the market, prices save in some
special cases. are not at an abnormally high
level. Moreover. It is quite generally believed
that further material improvement will be made
before a permanent setback develops. The
shares that have reached a level ranging from
par to 200 are. Of course. rot attractive pur-
chases for people of slender means but the men
with ample funds continue to buy this class of
stocks on the confident belief that future Quota
hons will be well beyond the purchase price
The advance in Rock Island has carried the
stock 70 a level that may more than measure its
actual worth at the moment but from the
known value Of the company's business and its
opportunities for largely increasing its business
for the present quotation. 1t is known that
g scheme for a readjustment of the companys
capital TO basis in proportion to the
growing Importance of the property is under
active discussion. and il is said on excellent
authority that the proposed plan may be sub
United 10 the stockholders this week. 1t will
Involve holding company and exchange of
the present stock for bonds. preferred and COM
mon stock. the bonds to have voting power.
lAe IS
the controlling interests in the property. as con-
troll may still be maintained a smaller capital
ownership than at present. The Western railroad
field presents unusual chances for expansion in
the railway business, and it is only necessary to
refer TO the earnings of the various roads in the
last few years to appreciate the substantial basis
for the rise in the value Of Western securities and
for the expectation Of still better prices Further
upward movements may be attended by active
speculative setbacks, but with these investors
and important market interests Will be little
concerned. The small traders who swing 100
shares when their financial standing warrants
ten shares are generally unfortunate in bull
markets, and in a bull market where violent
rises made, as, for instance. in Rock Island.
the chances for heavy losses among the weak
margin traders are evident. Small traders gen.
orally overtrade, buying stocks on the rapid
ups" and selling the quicker downs" Care
full operators who mindful of speculative
possibilities and whose bank accounts are small
may find il wise TO confine their purchases to
the low priced railway shares and the cheap
industrial issues of merit
Conditions in the Southwest are constantly
Improving and a consequence the Southwest
railway shares are growing popular. Even
Missouri Kansas and Texas, which has so long
been in the inactive list, is showing signs of
life under the influence of a good class Of buy
ing. The company has only S13000000 of pre-
ferred stock, and from present indications the
floating supply will soon be extremely limited.
Missouri Pacific. which pays per cent, will
doubtless enjoy further enhancement in value,
as the company is now in a financial and physi-
cal condition that practically insures the
permanency of dividends in years when
crops are lean. The Southwest is growing up
10 the railway mileage in that part of the coun-
try while the prospects for further extensive in
siustrial development induce confidence in new
railway projects in the various States and Ter
ritories In the Northwest similar conditions
exist The railroad situation in the Northwest
is improving at a rapid pace, and earnings
should continue to make splendid exhibits unless
the whole country is affected by a period of
Industrial depression, such as that experienced
in the years of the second Cleveland admins
tration If the Northern Securities case should
be decided against the companies the railroads
will still continue TO carry freight and passen-
gers a fact that people apparently
look in their alarm the possibility of a
decision in favor of the State that is seeking
10 disrupt the Northern Securities Company.
Should the merger be declared legal a Southern
Securities Company including the Louisville and
Nashville the Southern Railway and several
other systems will doubtless be formed
Notwithstanding gold exports the local money
market presents no evidence of a coming i'm
portant advance in rates. although it is believed
that slightly higher figures than those now cur
rent Will prevail before the late autumn At
the present time the Sub Treasury shows COM
Portable excess of payments over receipts, the
surplus on this account amounting from July
TO nearly S11.O00O00. While the demand for
money. especially time funds. is moderately
tive the banks exercising discrimination
in collateral that prevents the accumulation of
doubtful loans In the sterling market condi-
tons remain unchanged, with rates firm, but
without heavy pressure for remittance AL
though more gold may be sent out this week. the
banking community exhibits disposition TO
worry the international monetary situation.
Gold exports at present due TO natural inter-
national monetary conditions Gold is com
Ing to the United States from the Klondike. and
as most Of the amount received on the Pacific
Coast viii find its way into the local banks. the
foreign inquiry for the metal should not arouse
feelings of alarm in banking circles.
The crops this year will doubtless be infuen-
tial factors in the foreign exchange market.
We have. il is true a large foreign debt cur
hands but ii the harvests satisfactory
much. if all, of our European obligations
should be provided for by heavy exports of
grain and cotton. Crop news received in the
week uniformly favorable, corn in particu-
lar showing hardy growth. with the promise
of a bumper WELD throughout the corn belt In