New-York tribune., 1902-12-29
THE WEEK IN WALL STREET.

IL
Although general trading in stocks was no
psrric1,iarly active in the five business days o.
rbe last week there were number of iInportan'
,,rice movements and a large volume OF busl
noes ir, q few issues While money call ruled
or a high level prices for securities advanced
without important interruption. This vas espe
oially pronounced Friday. when on tooa
dealings Of less than 100000 shares, values en-
loved marked appreciation throughout the list
Money on call on the day named averaged II
per cent with a high rate of 13 per cent, the
record for the week Various reasons We're SCI
firth for the strength in stocks or. rather. fol
the demand for stocks the strength was the
result of the demand that came at perioo
ryben there was no large floating supply OF
-ecurities In the Street and when there was
short interest of no fnconsdeTable size Buying
Of securities apparently for the account OF
strong speculative interests and investors ordl'
mary commission house traders figuring 10 only
n small extent In the operations. The theory
srss advanced that spectators Of large incomes
,-rere accommodating stocks to hold for the ex-
<ected January rise, and that the banks Were
willing to encourage speculation, because of ex-
pected relief 10 the money market Following 'lie
.u-17 OF the year. The banks, of course, are not
fu business for their health and in this con-
uection it is interesting to note that the cur
rent wear has been the most profitable one for
s,e local money institutions in their history
Money rates will doubtless be much cheaper
Few weeks hence. and a comparatively easy
reriod is looked for from then until the usual
srring demand for funds from out Of town de-
svelops And when money grows easier foreign
exchange will doubtless advance. while gold ex-
,rorts may be made. Shipments OF the yellow
metal took place last year in the late winter and
~arJv spring months and while exports Of bread
&c
son TO believe that part OF our foreign indebted
ness will be settled in gold. Of course gold eX-
rorrs from New-York will not upset the local
situation as there will be ample supply OF
sunds az this centre TO handle home require
yrlents and foreign demand. There is a vast diff
ference between gold shipments that are made
to settle legitimate trade and financial obliga-
stons and gold shipments that represent the
withdrawal Of foreign capital from our invest
xneuts because Of lack Of confidence in the
STABILITY of business or the currency as. for in
stanoe in the dark days Of 1898 and the few
succee eding years The expansion in this Coun-
sry's usiness in the last few years has created
"a higher price for money, and developed the
necessity of a change in the currency laws by
(which greater elasticity can be given to the
rirculating medium and by which the Sub
sTreaeury system Of locking up funds in gov
eminent vaults may be eliminated Reforms OF
This character are promised. Fortunately. It is
probabie that Congress will be inclined to take
eone action which will do away with the peri
ndcal trouble in money centres which at pres
snt can only be relieved by makeshift arrange
snents by the Treasury Department
II is quite generally believed in Wall Street
that there will be an active upward movement
sn securities in the new year. barring, Of course
radically adverse developments affecting under
lying conditions. This belief is based the
generally sound position OF trade; on conditions
shat point toward heavy railroad earnings
shroughcat the year. on increasing exports OF
flresdst1fs and cotton. and the practical
certainty that the iron and steel business will
remain prosperous for a year at least Reports
from the commercial agencies indicate a Won
N ferfuIy prosperous situation in the country's
FBrfed industries Railroad earnings and bank
rlearings for the third week In December reflect
great activity in all lines Of trade. Considering
she length and breadth Of this country. its diff
ferent zones Of climate and the variety of it's
Industries. it is indeed remarkable that there
should be such uniform condition Of business
sctivity and growth throughout the entire terri
aors. The outlook is certainly cheerful one
for the holders Of securities From the purely
speculative point Of view. the best of the argu-
rnent is with the bulls, prices from 10 to
80 points under the highest OF the year, while
fhe liquidation Of the last few months has
placed stocks in the hands OF strong speculative
and investment interests. The expectations Of
bull enthusiasts may not. however be fulfilled
Immediately, but il appears quite safe TO believe
that advancing market will be a feature OF
Stock Exchange business early in the new year.
In last weeks market Brooklyn Rapid Transit
stock. Peoples Gas. St. Paul, Atchson, Read
hng United States Steel the Gould shares Union
Pacific, Sugar Refining, Anal algamated Copper
end the Rock Island issues were conspicuous
features. There was an excellent demand for
fhe Rock Island shares, especially the preferred.
The latter stock. 1 per cent issue, will
eventually be placed per cent basis, and
its current price il naturally appeals TO care
sul buyers. Rock Island is big carrier,
hut, despite the poor corn crop of 1901, earnings
OF the company in the last twelve months have
been the heaviest in the history Of the road.
AS the years crop is the largest on rec
ord, Rock Islands earnings in 1903 should be
Tar beyond the big record OF 1902.
The market closed the week strong and active
with prices at about the top. Bank statement
figures showed a further reduction in reserve
sbove legal requirements. but as increas-
3ng reserves were expected IN the new
year the figures without effect on
sentiment. In January. 1902. reserve rose from
s7.515.575 January to S26623. $50 on Feb
ruary l. The reserve shown by Saturdays
statement is S6.549.2oo.