New-York tribune., 1902-03-10
H-ga L-w Ma e., MAJ. J. "a
THE SITUATION N WALL STREET.


THE SITUATION N WALL STREET
The course ot stocks last week was unusually
erratic. and yet final prices fer majority Of
Issues were Q above those of the week before.
This too in spite Of the fact that The develop
rnents Of the week were for the most part of
an adverse nature. or at least what. in ordinary
circumstances would have been considered ad-
verse The Improvement in values was rem
dered the more remarkable 10y the almost en-
tire absence Of the public from Wall Street The
market was distinctly professional The men
who make a regular business Of speculation had
only themselves 10 buy from and sell 10, and
still without anything to arouse enthusiasm
prices as a whole were raised 10 higher level
Even the unfavorahle bank statement on Satur-
day was practically disreearded Altogether. II
was a week Of surprises and contradictions. and
Il closed without giving forth any pronounced
sign OF what the future was likely 10 witness
The manipulation Of stecks was unconc ealed-
In some instances il was fagrant. but that was
a matter Of no consequence. for the game was
being played by old hands and experts who We're
presumed 10 be able plainly 10 discern what
was going on. New and bold leaders have ap-
peared in Wall Street. and they are exciting
more than mild astonishnlent by their feats in
speculation They came out Of the West, where
are large and the results Of them, whether IA
vorabIe OF otherwise are large. They have
lately bought stocks literally by the Team- They
have not sold Yet. bur il Is TO he presumed that
when the tine comes 70 sell they viii sell by
the ream. The erstv hiIe system was 10 buy by
the ream. perhaps and perhaps only. and 10 sell
by the quire. The retail business has been driven
out Of Wall Street. i IS now all wholesale If
traders get overstocked Al times. there are
fy7~-+g s-7a h. in
other lines.
These are different days IN the Street from
what they We're not SO very long ago. Nowadays
il is not uncommon 70 see the stock Of rail
road that one knew as on the map suddenly
burst as the most active issue on the list.
Stocks. too. that have been moribund. break
into volcanic action in unexpected fashion No
tions that Wall Street is in its decadence are
mistaken ones. i was never SO fun Of vitality.
The stock market at present is such the
average speculator. from the so-caued scalper
10 the plunger. likes There are fine opportuni-
ties for profits. 10 say nothing Of losses. The
market is convulsive and aIuring and elusive
but those are exactly the features that are
needed 10 render il inviting 70 those who buy
and sell stocks as a steady occupation The out
look certainly Is for an animated market for
period at any rate.
AT this particular juncture the matter Of
money is uppermost The spring is not ordi-
narily a season when a pinch in money occurs
but, contrary TO earlier indications. It begins 70
look as il cash might soon be in rather limited
supply. The Treasury is constantly absorbing
currency. and Neu--Yorl is the place from which
the largest amount is absorbed From tine to
time. by one means or another, money is lib
Grated from the Treasury. but If promptly flows
back again. and the relief. accordingly. is only
temporary Were the currency absorbed equally
from all sections of the country il would be diff
ferent. but NeW-York has 20 stand the strain
and the strain is particularly severe on that
part Of New-York popularly designated as Wall
Street. Again, the absorption Of currency by
the Treasury would not he felt so much were
not the monetary requirements Of general bust
ness so great. The rule IS first 10 supply the
needs Of general business and then the needs Of
Wall Street.
The interior movement Of currency Is in favor
Of New-York BY this is meant that more cash
IS coming 10 New-York from domestic points
than is going out Of New-York. The balance in
favor OF Eew-York is not large, and it may
altogether disappear. as Boston. Philadelphia
and other nearby places are making persistent
and seemingly growing demands upon this cen
tre for funds. There has been some loss OF
money through the shipment Of gold 10 Europe
but it is believed that the expectation Of gold
VIII soon cease Inc outgO or EOIl IN the last
TWO weeks has not been explained II has been
said that America could meet its obligations
abroad - no other way than by sending gold.
Il would be cheaper 70 let its obligations stand
and pay interest on them. Il is not impossible
that sold was taken from America in prepara-
ton for a new war loan or other kind Of govern
nnent loan by some European nation. The state
Of the exchange market by itself has not war
ranted gold exports
An efectual barrier against the departure of
gold can be erected by raising the rates for
money. Such action would al the same time
draw money from the interior. but high rates
for money are calculated 70 restrict and other
wise interfere with speculation. II is one thing
when rates are high because money is scarce.
and II IS another thing when rates are high
because money. although abundant IS actively
employed IN the latter case there is a healthy
state Of affairs but II money has disappeared
OF departed from the place where needed, or is
withheld. the situation is untoward. In addi-
lion. a scarcity Of money is customarily ac-
companied by a discrimination against certain
securities as collateral for loans. When, in the
parlance OF Wall Street. these securities are
thrown out Of loans they likewise are discrim-
viii not buy them on margin. and, rather than
take them up. or. in other words pay for them
outright. speculators VIII not trade in them
st all
It will not be long before the crops viii be a