New-York tribune., 1902-10-13
THE WEEK IN WALL STREET.

The course OF securities value in the last week
was generally IN the direction Of lower prices.
Rallies were enjoyed on two days, hut the inn
movement was lost subsequent declines.
With call money averaging 10 per cent a bull
market is out Of the question. II is not how
ever, a time for pessimism over the future
course OF the market as conditions affecting the
Intrinsic worth OF investments are sound and
point toward further industrial expansion. A
settlement of the coal strike and the return ~
money 10 this centre will doubtless be followed
by renewed operations for rise in the local
market Meanwhile technical conditions are
growing stronger. Weak accounts have been
eliminated, dangerous pool operations have been
checked, and stocks have become more strongly
intrenched in the hands Of important financial
interests
Commission houses continue 10 warn custom
srs not 10 buy at the current level The attitude
of some commission houses is curious as they
invariably encourage the purchase Of securities
on an advancing market while when bargains
are presented, they preach Generalization and
loss 10 their clients There would be fewer
losses in Wall Street if people would learn TO
buy cheap and sell dear, II they would buy
stocks when prices are down and Wall Street Is
blue with pessmism and forebodines Of woe.
Wall Street is engUlfed IN depression al the
moment that many judges believe the time is
near al mana Nnen STOCKS VIII t't a St't' tN-
chase even on small margins No one should
operate however. small margins. Large
margins should be provided in all markets. and.
II possible. outright purchases should he made
Prices may go much lower. as the bear element
is working with that end in view, but neNeTthe-
less stocks bought at current quotations should
prove profitable in the next upward move
The local banks show disposition 20 enoour-
age speculation. but many people believe mat
The current rate for money is not Justified 10y
the monetary situation. Perhaps too heavy %
burden is being placed on the brokers 81 any
rate brokers are grumbling. and, moreover.
they accuse the banks Of Discrimination lu la-
vor Of certain houses. Talk of "a money trust
has been revived but the banks naturally la1s'
at the idea of a combination TO advance money
rates u Is a laudable intention Of The banks 10
restrain speculation. but il is pertinent o. ie-
mark that intention Of this character earlier in
the season might have served 10 prevent the
conditions that exist to-day. In August money
ruled al 2d4 per cent, despite the fact that bank
reserves were falling, that speculation for the
rise was active. and that traders believed that
the bul pools and syndicates would be taken
care of by the banks indefinitely. The brakes
should have been put "a ln lhs summer.
can money. averaged 10 per cent On the week.
Time money was i'm good demand at q peg cent,
and a commission. Payments on account ~ the
Louisville ana NaSlAlAIe ana ltlr sff-N hllTa Sl-l
trust deals were factors thar caused money mar
let fluctuations from lo 30 l. per cent. In The
sterling exchange market strength developed i'm
the early part Cf the week but Al the close
rates were not far from the sold importing
point From on the supply of hills will he
heavier. and this country may he able 10 bring
in round amounts OF gold. although no extended
movement is expected. owing 10 the fact that
our loans abroad will offset in great part the ef
fa-f .,fh haa IN her
last government crop report shows decrease
an the indicated WELD Of corn as compared with
month ago. hut an increase Of upward Of
S00O00000 bushels over last years yield. The
u condition OF corn as expressed in percentages
is 196 per cent. against an average Of III for
the last ten years The wheat yield is large,
although under last years harvest. while oats
viii furnish a crop Of "a bushels 10 the acre.
compared with average Of eos for the last
ten years This years crop OF oats VIII be the
largest on record. Rye. barley and buckwheat
will also yield bountifully. II has been a great
year for the farmers and a result the next
twelve months viii be profitable ones for the
railroads and steamship lines
The railroads are making enormous earnings
AT pre- sent. and when this years crops begin 10
move 10 market something phenomenal in the
way OF earnings may be expected Corn ex-
ports were small last year. hut they viii he
hushel in the next twelve months. the money
value Of this years corn crop viii be about
S360O00O00 greater than il was last wear This
increase viii add much 10 the purchasing
power Of the agricultural community. and indi-
recty il viii be a favorable factor in every
line OF industry in the country. The enormous
movement OF freight over the railroads Of the
United States has compelled the companies 10
place in service every available car on the lines.
4r.aa r-fsn,
reports are arriving daily of the inability, Of the
companies 10 handle without DELAY the -raffic Of
fered. There is probably not a railroad in the
United States that has not increased its eo,ir-
ment in the last year and according 10 the re-
ports Of the car and locomotive building con-
Germs, there is not a company in the country
that is not now contracting for new cars and
locomotives for delivery as soon as they, can he
manufactured The railroads see in existing
conditions satisfactory reasons FOR expecting an
expansion railway traffic IN the next twelve
months. AS long as the railroad business in the
United States is good there need be no uneasi- !
ness among the holders Of American investment
securities
People who are pessmistic because OF the cur
rent reactionary tendency in the stock market
should study railroad earnings and crop condi-
tions. Take. FOR instance. the returns Of some
OF the roads reporting for September. as shown
IN the following table compiled by The Finan-
cial Chronicle.
INCREASES
Great NorShsTn system c~o -oadsl ..... siS rs,
81 Louis and san Francisco 80 Sl9 S52
LessN..ie ana Nashville ......... :as ~
Norfolk ana Western ,-...------- S4.s 90
Sssna Trunk system Cthree roads, ........ asS,,{5
Missouri Ksns.s ana rrx.- '----.------- 2ls2z