New-York tribune., 1902-10-27
THE WEEK IL WALL STREET


spirit of conservatism on the part Of the larger
speculative interests reflected in the course
OF values and in the volume OF business prices
moving within narrow limits. and trading
reaching unusually small totals. Current con-
se-vatism in Wall Street follows a period Of
speculative exoesses. a period of heavy gains
and severe losses, and il is therefore natural
and well that quieter situation has developed
In Wall Street affairs. At present the marker
Is going through a backing and hlling process
that discourages the expectation OF an lmiheu-
ate big movement in either direction. but II
should be borne in mind that process Of this
kind improves the general health Of speculation
and insures active market later on.
While speculation is dull conditions in the
money market continue 10 improve Rates lor
can loans have declined from the recent hlgh
level 10 4G5 per cent while the foreign eX-
change market. despite strength in the early
mart OF last week. begins TO reflect increased
exports of grain and general merchandise from
this country Much talk of goo exports Is
feing INDUCED in. but il is not generally ne
lieved in well informed foreign banking circles
that gold will be shipped 10 Europe in the I'M
mediate future or that important exports Of the
metal will be made in the course Of the next
twelve months Exports of general merchandise
and it is expected that the outward movement
OF grain this fau will supply a sufficient amount
og exchange TO offset this countrys large dent
balance in Europe Already the European De
r,snd for American wheat is heavy. adequate
,eaection OF which is presented in the oThclaI
statement OF exports in September and for the
last three weeks. According TO the best IN
formed bankers there is now no occasion ioF
alarm ever the position Of the local money mar
sl,a ,ea. 1rpn 1T
nent bonds by the Federal Treasury the New
York banks received from the sub-Treasury
last week upward Of S20oe0oo0 in excess OF
the amount paid out by the banks
The advance in the foreign exchange market
in the early part az the week was due 10 the
easier rates for money al this centre, frmer dis
counts and a higher price for gold IN London.
hy a decline in Paris exchange on London ana
by an active demand for remittance in settle
rnent for maturing loans The market was also
,,Auenoed ty sales Of American securities for
foreign account. Gold exports from the United
states AZ this time would doubtless cause selling
Of stocks among tirnid holders but il is not like
" that an outward movement Of the metal would
cause anv particular disturbance in the money
market The money market has been helped oy
artificial means. but the banks have the money
nevertheless and there is apparently no danger
of a return OF the troublesome conditions mat
prevailed a few weeks ago. Bankers are evil
IDENTIFY anxious TO build up their reserves before
huh speculation is resumed; indeed, il is quite
apparent that the banks are wisely dlscourag-
ing market activity at present. Another factor
that tends to check speculation is the approach
of November 4. with its uncertainties regarding
the results of Congress elections The election
of a Democratic Congress would naturally exert
an adverse influence on Wall Street. but the out
look certainly does not favor such a recent dis
NAL development. The recent elections in Maine
Vermont and Oregon showed no important fall
ing of in the Republican vote and among astute
politicians il is believed that results in the States
named foreshadow general Republican victories
in November.
Days in the week when the market declined
Witnessed an excellent class Of buying. This
especially pronounced in the cheap railway
shares and the attractive industrials. The iron
and steel stocks were firm features also the car
VI building company shares and American Hide
and Leather In the railway list aggressive sell
ing was reported early in the week in the Gould
stocks, notably in Missouri Pacific which suf-
fered a decline Of about two points The selling
OF the last named issue was not based on any
adverse development affecting the property. but
on the silly disposition Of the bear element to
attack all of the Gould issues Short sales of
the Gould shares for quick terms may pay. but
there is absolutely no reason for legitimate hold
ers OF these shares TO sell. Missouri Pacific for
instance is one Of the most attractive > per cent
railway securities dealt in on the Stock Ex-
change At its current price IL yields on the in
vestme & about Az per cent. while it's actual
value investment is many points above
the prevailing quotation. All Gould securities
attractive. and efforts 10 prevent their grad
ual rise viii doubtless meet with failure The
vote by the coal miners TO resume work was
without effect prices. although IL created a
tavora bic impression on sentiment especially in
commission house circles. The settlement Of the
strike only in part discounted in last weeks
trading.
When the market works into a bull move
ment the stocks OF the steel and iron companies
will doubtless be leading features. The United
States Steel stocks have been inactive as far
as speculation is concerned. for a long time
past, but it may be stated on authority Of
brokers that a quiet accumulation of the is
sues by investors has been going on. Buying
is, OF course. based on the enormous earnings Of
the concern the probability Of no let up in
the iron and steel business this year and the
belief that even in poor years the company will
be able 10 make returns TO its stockholders. A
strong argument in favor OF the United States
Steel Corporation lies in the fact that il con-
trols in great part its source OF supply It owns
the mines from which the iron is obtained and
IL controls in great part the TRANSPORTATION ia
cilities between the mines and the furnaces.
The very fact that iron and steel imports have
recently increased shows the extent Of The cur
rent home demand. and il is therefore = hull
point on the United States Steel securities
The good industrial stocks promise 10 sell much
higher, and as the steel shares have been bought
by prominent interests for better prices II NAV,
be interesting TO watch their future marker
movements. In the outside market purchases
OF the new Rock Island preferred stock are in
creasing. and opinion is quite general that when