New-York tribune., 1902-01-06
THE WEEK IN WALL STREET.


There was a fair buying demand for stocks
throughout the week on an advancing level OF
values A reaction on Friday and Saturday car
ried prices fractionally below the best quota
tions of Thursday. but at the close the greater
number of issues showed net gains compared
with the final figures of the preceding week,
Speculative sentiment was cheerful The larger
Wall Street interests apparently were actlNely
engaged in encouraging an outside demand Tor
securities and their efforts met with more sue
cess than in any week in many months. Al
though money market rates were high. there
was no uneasiness in speculative circles. doubt
less because there was well founded belief
that the advanced price of money merely repre-
sented the shifting of loans incident to end Of
the year requirements; also, that 1t was the end,
for the present at least, of the period of st1n
lending rates On Friday the quotation for call
loans was reduced to per cent, through the
heavy offerings by the National City Bank and
this action naturally created the belief that the
banks were in a strong enough position to ex-
tend accommoda ton at reasonable figures. An
advancing foreign exchange market received
little attention in the speculative community
but in well informed foreign banking houses the
prediction was ventured that the foreign ex-
change market might yet serve to prevent a
return of money rates TO a normal level. A
RESUMPTION of gold exports would not surprise
the people who are careful observers OF the
foreign exchange situation.
The prospect of higher rates for sterling
change should not create uneasiness in Wall
Street. If gold goes out this winter II will be
because this centre can spare the metal and
shipments will not cause any scarcity in gold
holdings In this country. In the last year gold
exports exceeded gold imports but the actual
supply of the metal in the United States in
creased in the year S60O00OOO. Gold shipments
from New-York are more than offset by gold
receipts at Pacific Coast points from Australia
and the Klondike. and from the production of
the Western mines. A firm money market will
not necessarily interfere with bull movement
in securities although it may prove expensive
10 holders on small margins who deal beyond
their resources in the stock market. When
commission house traders learn how to deal
within their means there will be fewer losses
in Wall Street. AS rule. the ordinary trader
buys hundred shares, when he should only
buy one hundred shares. and a consequence
he has nothing to fall back on when the market
declines, the mercy Of his broker. And
brokers are not apt to extend accommodation
to people who have no additional margin to
8 offer. Men who buy hundred shares big
margins are able to average their losses
decline and eventually they secure hoped for
profits It may be well for stock market opera
nate traders whose only motto in last years
boom to buy, buy. buy.
The prospects for 1902 certainly favor the ad-
vocates of higher prices. General conditions
affecting the intrinsic worth OF securities are
sound. Trade reports indicate no let up in in
dustrial activity and change in the character
of business. There is tendency TO bring all
lines of trade to the basis Of supply and demand
and in place of the speculation and imitation
hat iIe1 ie n
and legitimate condition Of affairs that promises
well for the future. Prices Of stocks are of
course well above the level ruling this time
last year, but in the greater number of issues
there is stili margin to be overcome before
stock values are a level commensurate with
intrinsic worth. This is especially true in the
Of the medium price railroad stocks and
the attractive dividend paying Industrial issues
that selling under par. A stock like Denver
and Rio Grande preferred. which pays per
cent, is not dear under par. neither is Southern
Railway preferred, which sells under 90 and
pays per cent with the prospect of paying
per cent before the year is over. Louisville
and Nashville is cheap at its current price. so is
Canadian Pacific. Similar instances may be
found in the bond department notably the Erie
collateral As. which We're issued to finance the
Pennsylvania coal deal Erie common stock
Southern Railway common. Reading common
and other cheap shares that are not In the diyi-
dend column have merits that will doubtless be
reflected in higher prices in the current year
in the industrial list American Car and Foundry
preferred. Pressed Steel Car preferred Interna-
tional Pump issues International Paper pre-
ferred and American Locomotive preferred are
dividend payers. the intrinsic worth of which is
well above ruling quotations
The heavy January disbursements have Gre
ated buying power in stocks that should con-
tinue for some time 10 come. II the market be-
highly active sharp reactions may be
looked for, and it may prove advisable to bear
in mind that the active market of January
year ago checked before the end of the
month by declines running from 10 10 points.
There Will doubtless be more than one side 10
the market. Efforts to prevent the retire
ment Of the Northern Pacific preferred stock
met with deserved failure last week and
January / the entire issue Of $4,000 900
was retired without interruption thus complet-
ing the readjustment and settlement of the
Northwestern railway situation. This was one
Of the important developments of the week, and
IL not without effect securities values
Wall Street believes that the settlement of the
Northern Pacific fight will encourage activity
among interests connected with other roads