New-York tribune., 1902-05-26
THE WEEK IN WALL STREET.

Stock market trading was light throughout the
week a generally firm movement Of values.
The labor trouble in the anthracite coal region
was. of course, an influence restraining specula-
tive operations. but IT failed to produce perma-
nent injury TO values. as after declines early in
the week prices recovered and continued strong
until the close. The absence Of active speculation
at this particular time increases the chances Of
a broader market later in the season. It
helps to improve the position of the banks. and
II affords opportunity for the quiet accumu-
lation Of securities within fractional fluctuations
by the substantial market interests. Dull and
hestating marketssere utilized by far seeing
operators 10 secure lines Of stocks TO hold for
higher prices. In the present cases there are
enough favorable factors in the situation TO
warrant the expectation Of better prices for the
greater number of securities before the summer
reaches its end.
The anthracite coal strike may involve
bituminous strike: II may be accompanied by
a refusal of the employees Of the anthracite coal
carrying roads to work. II may cause physical
disturbance at the mines. and 1t may affect for
a time general industrial activity. The chances
are, however. that none OF the factors named
will develop. and even If they should the country
will not be thrown into bankruptcy.
Outside Of the anthracite coal strike the
business situation in the country is all that
could be desired. In addition 10 the strong po-
tors are developing which will doubtless exert
a powerful influence on the Wall Street mar
kets. The most important is the prospect OF
early peace in South Africa. An end Of the
Beer war will encourage an industrial revival
throughout Europe. II will release a large
amount of money that will be available for in
vestment, and it win create a bigger foreign
demand in the local market for good securi-
ties we'll a better demand for American
lators already buying American securities
in expectation Of a settlement. and it is
believed in well informed foreign banking circles
that the foreign dealings in the local market
viii be important factor in the daily deal
ings for many months TO come. In the last two
weeks large amounts of share certificates rep
resenting the stock OF the Union Pacific. Atchi-
son and other roads have been shipped TO Europe
1t is estimated that recent shipments of Union
Poetic and Atchison have amounted to up
ward Of S25.000,OOO
The heavy buying for foreign account of
American securities has caused a noteworthy
change in the foreign exchange market in the
last ten days. Notwithstanding the growing
ease in the money market. exchange rates have
moved toward lower level and at the present
basis they a considerable distance from the
gold shipping point. Offerings Of bills how
ever. in the local market represented in part
loans from Europe. arbitrage houses Of
fered sight drafts resulting from the transfer
OF securities to Europe. TO be used collateral
against direct loans in foreign centres This
country is heavily IN debt to Europe sor money
advanced and the balance Of trade in our IA
vor has been offset by the heavy American in
vestments abroad, by travellers credits. by the
differentiation OF imports. and other known
factors 1t is possible. however. that no large
amount of gold VIII be shipped despite recent
predictions that heavy exports would be made
new factors in the situation have increased
the probability OF large purchases OF American
securities for investment abroad and of in
creased merchandise exports from here. The
largest falling off in domestic exports this year
has been in breadstuRs. chiefly corn Wheat
shipments are increasing. and If the corn crop
is not failure this year there viii doubtless be
an enormous outward movement of the cereal
Reports from the agricultural parts OF the
country nave been extremely favorable for
the last two weeks Bulletins from the various
centres of industrial activity show progress in
most lines of trade. Railroad earnings are
heavy. and there is prospect Of a reduc-
ton in traffic receipts in coming months The
money market is growing easier. bank condi-
tions are improving. and the outlook favors
low level OF lending rates throughout the sum-
rner. In the last two weeks $40 100000
has been added to the reserve above legal re-
quirements Of the local banks. In the foreign
markets monetary conditions are quite favora-
bic. with discounts comparatively low fig
ures. The London market for discounts OF
sixty 70 ninety day bank bills is pa per cent
The open market rate at Paris is 1%GI7s and
at Berlin ana Frankfort 2as per cent The Bank
Of Englands minimum rate OF discount re-
mains at per cent.