New-York tribune., 1902-12-08
THE WEEK IN WALL STREET.

rrneprrarity was the chief feature Of stock
,,,s-Le- ,,,ouar,ents in the last week. In the
early mart OF the week the greater number of
issues exhibited moderate strength on a Iali
sized volume OF business. but in the last three
6ays prices were extremely Irregular. with the
tendency generally in the direction OF lower
values President Roosevetis Message 10 Con-
ere.s heIped the market for brief period The
absence Of aggressive support, however us
couraged operations for rise, while increasing
uncertainty over the money market gradually
encouraged enthusiasm among the bear eie-
n1ent.
Although money market conditions are not
favorab bic TO extended bull operations In secur-
3ties there is nothing in the monetary situation
,hs- foresbadows acute disturbance. Borrow
ers on good collateral able 10 secure all the
accommodation desired at prevailing rates
Commission houses are we'll supplied with time
funds while mercantile concerns find no dlf1l-
entity in placing their paper. Merchants are not
heavy borrowers at this centre. needs appar-
ient1v having been well taken care of. Accord
ing 70 the commercial agencies. the merchants
IF This country are in better financial position
than ever before reported Farmers and mer-
chants are prosperous Railroads are prosper
GUS and in all lines Of trade healthful condi-
tions prevail. There are temporary factors IN
The Wall Street situation that are not favor
bic to operations for higher securities prices;
hlr. these factors it should be borne in mind
are not indications of q recession in business
activity
Cold 10 the amount Of 81. 100000 was shipped
from Nev-York TO South America in the week.
while the Sub-Treasury continued to absorb
money from the local banks. Sterling exchange
is below the point at which the precious metal
can be sent to Europe at profit, and. despite
cur obligations abroad, an important outward
movement of gold is not expected Exports OF
general merchandise are increasing Shipments
Of corn in 1908 should be heavy, while indca-
tions point toward a large outward movement of
cotton The governments estimate places the
WELD of cotton at over 10, 100000 bales, and, as
government figures are generally under the
actual crop, it is safe TO count on yield OF at
least II 0Ga 600 bales. 1t is interesting TO note
that exports Of manufactures in the last ten
months have been III value larger than in any
preceding similar period, with the exception of
1900 showing an increase over 1901 of Sl5,-
100000
Railroad earnings continue to show remark
able gains over the corresponding period year
ago and as there is no indication Of a recession
in trade activity there is every reason to believe
that traffic returns viii be enormous throughout
the next twelve months and longer. Net earn
ings for October now being received show that
while the companies are placing heavy amounts
from earnings into their properties, a fair pro-
norton of the increase in gross is shown in net
For instance. Louisville and Nashville's gross
earnings were S3s1.26S larger in October than
in the same month last year. while net earnings
increased S193 76S. St. Paul increased in gross
S293 4S4 and in net S204,362- The congestion OF
freight at Western points is being relieved to
some extent, but the transportation companies
stiIl are hampered by lack Of cars, while the
indications point 10 similar conditions for long
time 10 come. Western shipments Of general
merchandise are holding UP wonderfully We'll
and as soon as higher rate schedules go into
effect earnings will doubtless be phenomenal
Earnings of the PENNSYLVANIA Railroad for Oc-
1ober show a large gain over the same period
last year and from January l to October 81
the entire system presents an increase in gross
income of 5::S;,9 GOO over the same time in the
preceding year. and an increase in net earnings
Of s4o90. 100. The progress Of the countrys in
dustries is reflected in the growth Of traffic on
the Pennsylvania Railroad. This road probably
taps more industrial centres than any other
road in the country. It's freight represents the
products of the mines, Of the farms and OF the
manufactures. The gain in earnings the
PENNSYLVANIA. therefore, indicates prosperous
conditions throughout the United States In
view Of the higher cost of materials and the
large amount OF money spent on the property
from earnings. il is not surprising that the gain
in gross earnings of the Pennsylvania is lost in
part in net results. but il is well TO bear in
mind that with the proposed higher rates for
transportation charges net income will make
far better showing in 1908 than it has made in
1902. There is no reason for pessimism over the
future Of American railroads
Stocks are generally in strong hands, and
while the larger interests are not disposed TO
encourage bull speculation they are willing to
bry on all recessions on the theory that prices
are cheap. and that in the course of the next
sixty or ninety days quotations will rule at
materially higher leyel. People who can afford
TO carry good stocks through the present period
Of money market uncertainty viii doubtless be
well repaid at a later time. The majority Of Sc
curities worth more than their current mar
ket values. With per cent money market,
however. upward movement can hardly be
expected When all conditions governing the
actual want of securities are carefully consid-
cred il should readily be that the pros
poets do not favor the theory that is advanced
in some quarters that the country's wave of
prosperity is receding, and that stocks are a
sale for long pull Securities may be a good
sale for a short pull. but the long side of the
market looks the more attractive for future re-
suits. The low priced railway issues and the
first class industrials will undoubtedly be feat
in the next upward move in values Sat
urdays bank statement showed a decline in e.
serve above legal requirements of S5S12 800 to
S9,913,1J0. Reserve at this time year ago was
SIS 6of ,6T5. and s., 7G1, ,125 in 1900 In December
a. year ago call money was as high as 12 per
cent in the second week, 10 per cent in the