New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-11-24
THE WEEK IN WALL STREET.

in the closing days. when prices enjoyed marked
appreciation Stock market operations repre-
sent at present buying by substantial commits
sion house Spectators and covering of short
contracts by the professional element Whether
not liquidation is at an end few brokers are
able 10 determine with any degree Of confidence.
The chances are that the decline of the last few
months has eliminated all the weak and danger
Gus speculative accounts. save. perhaps. in the
case Of some Of the pool holdings which have
been supported by strong financial interests It
is quite certain, however that technical market
conditions are strong. and that prices for most
securities are selling at a level many points be-
low their intrinsic worth.
Heavy buying of Manhattan stock the
leading feature Of the weeks market. Activity
in this issue was based on the reported purchase
Of the elevated system by the subway company.
While no confirmation of the report was given
from official sources il was generally believed
that deal of this character would be effected.
The transportation business in New-York, in
GLIDING the Brooklyn lines. viii undoubtedly be
under one management before many years 90 by
Brooklyn Rapid Transit stock and Metropolitan
stock advanced in sympathy with Manhattan
on an excellent class of buying. Brooklyn Rapid
Transit will some day he in the dividend paying
class and present holders Of the stock are con-
fdent that its future price will justify the main
tenance of tight grip on current holdings Of
this issue Dealings in St Paul were also heavy
IN volume while the price of the shares enjoyed
substantial Improvement The advance in this
issue was not accompanied by news develop
ments affecting the property. although 1t was
currently reported that the rights on the stock
would soon be distributed. Among the other
active features the new Rock Island issues were
prominent. Houses that operate extensively for
strong Western interests and interests identified
with the Rock Island company were active buy
ers Of the Rock Island shares throughout the
week. The course Of trading in Rock Island
common apparently reflected vigorous efforts TO
create a big speculative interest in the stock.
The preferred is being absorbed by investors
who are firm believers in the future of the Rock
Island company. Compared with other invest
nents Of equal intrinsic worth. Rock Island pre-
ferred at its present market quotation is Of
course remarkably cheap.
Investment buying is an important feature in
the current market. especially the buying for the
account Of small investors in all parts OF the
country. The demand for small share lots is
excellent, the dealers who take from ten TO fifty
shares being in evidence. Although quotations
may register further declines before a sustained
bull market develops. there certainly IS no rea-
son for hesitation on the part Of people who
wish to buy stocks at the prevailing level Pur-
chases at this tine should be outright transac-
tions. il is not a promising period for the
small margin traders. In the recent decline the
industrial shares did not suffer to the same ex-
tent as the railroad securities. Indeed, the
losses made in the industrial list were, with only
a few exceptions. insignificant. There has been
practically no speculation IN the industrial
shares in the last year. and a consequence
these issues are held by strong financial in
terests who find in present conditions ade-
quate reason for parting with their holdings.
In the majority Of cases market values Of the
industrials far below their actual worth,
but the chances are that in the course of the
next year there viii he a marked change in the
quotations Of the various issues.
Conditions governing the value Of investments
present no element Of weakness. According to
the reports received 10y the commercial agencies,
business throughout the country continues
healthful, with every indication Of further
pansion in all departments of trade. Railroad
earnings are enormous. bank bearings are large,
and exports Of merchandise are increasing. Oc-
tober was one Of the best export months in the
history Of the country. while November opera
lions promise 10 make a still better showing.
The increase in the wages of railroad employees
throughout the country viii amount 10 upward
Of 100000 This. Of course will add heavily
10 the expense account Of the various roads, but
it viii be Offset by the proposed advance in
freight rates. If the proposed new freight
schedule is carried into effect the railroads viii
receive an income about double the increase IN
wages. The railroad business in this country
is in a sound position. and holders of American
railway stocks have every reason for confidence
IN their investments.
Time money is in better supply, while call
money is gradually working easier The move
Inent Of money on interior operations is now in
favor OF New-York, but so far the increase in
cash from this source has been offset in great
part by the absorption Of money from the local
banks by the ub-Treasury. Foreign exchange
market conditions apparently do not foreshadow
immediate gold exports although il was report
I'd last week that shipments Of the metal might
be made this week. It is not thought likely,
however. that there will be a large or extended
outward movement of the metal this year
There is an ample supply Of funds at this
centre TO meet all legitimate requirements
of trade and possible gold exports. This
country can easily afford TO ship the yell
low metal to Europe, and if a movement
Of this kind should begin next week there
Will be no occasion for Uneasiness in investment
circles Notwithstanding the reports regarding
the time money market. 1t may be said
thority that the demands for time loans are not
active and that commission houses and other
borrowers are well supplied with funds. Re
garding payments on syndicate transactions it
Is interesting to know that the last payment on
the International Mercantile Marine Company
due abroad. was made last week. Bank reserves
IN New-York are unusually large for this period
of the year. the reserve above legal require
1nents standing at $40, 529975 and it is there
fore difficult to understand why SO many people
are making such gloomy forecasts on the money
situation. II conditions governing the real value
OF securities do not undergo an adverse change
in the course Of the next few months there
ought TO be a resumption Of bull activity early