New-York tribune., 1902-02-24
High. Low. Feb. q Feb. Is Ch'gs Sales
THE SITUATION IN WALL STREET.

/ THE SITUATION IN WALL STREET.
! While the speculative outlook may he some
what uncertain, the financial situation by itself
is clear enough. An unwarranted effect upon
the stock market was produced by the an
! nouncement by the Attorney General of the
United States of his intention. at the instance
of the President, to institute proceedings to
determine the legality of the merger Of the
Northern Pacific and Great Northern railroads
through the instrumentalty of the Northern Sc
curties Company. While the action proposed
by the Attorney General may upset the
binaton that has been effected and restore the
original status of the two railroads in question
there will not, in any circumstances. be any in
Validation of property rights, any disturb
ance interference with general business con-
ditions. 1t is perhaps not surprising that the
impartng of the Attorney Generals intention in
the Northern Securities case should have
erted unfavorabe influence on the stock OF
the Northern Securities Company. but it is IN
comprehensive that il should have swept to
lower level the prices of practically the entire
list of securities dealt in on the Stock Exchange.
Yet such was the consequence. There be
no question that most OF the corporations whose
stocks and bonds bought and sold on the
Exchange are legally constituted and legally
operated. AS fact. the question of legality in
many instances has already been decided in the
courts. 1t is peculiar and noteworthy that the
stock Of the Northern Securities Company has
not been admitted TO dealings on the Stock
Exchange, being traded in on the curb" only;
that the stock of the Northern Pacific Railroad
has been stricken from the Exchange list and
traded in neither on the Exchange nor on the
curb, and that the stock of the Great Northern
Railway is traded in on the Exchange to a COM
paratively insignificant extent Nevertheless,
Wall Street. as a whole. was shaken and de-
ranged when il became known that the regu-
larity of the consolidation of two railroads was
to be tested The Street partially recovered its
equanimity on Friday, and possibly something
like normal conditions would have been wit
messed on Saturday had not the Stock Exchange
been closed by reason of the holiday
The financial situation as expressed in the
state of money is of more Importance than the
Northern Securities disputation but because of
It's not being unfavorable 1t has not been sub
Ject to unusual attention 1t seems to have
been overlooked that there is more money in the
country and more money in New York than
ever before; that there is more use for money
in New-York and elsewhere than ever before
and that the equilibrium of the money market
is established it scarcely or never was be-
fore In the first place there Is the money to
do business with; again there is the business 10
employ money, and again. still there is a ner
feet adjustment between the suupIv Of and do
mahd for money. The situation in money in
snort is much out Of the ordinary, and worthy
or more than customary consideration. This
situation unquestionably is due to the placing Of
the country squarely on gold basis by the gold
standard act, for this act begot confidence NOT
alone in the money Of the country hut also in
the stability of the business interests Of the
country.
Inc course of sterling exchange rates in New
York and Paris has in the last few days s,,a
Sested the probability of resunntior Of -
PortS OF gold from New-York to Paris in tho
present week. but this prospect has been with
out perceptbe influence on the money market
I follleTly an outgo Of gold served invaria blv to
ies'rIct purchases of stocks and to depress their
prices NOW 1t is not much Of factor in either
the stock market or the money market II &c
recognized that when gold leaves these sboros
II is because there is more need for it abroad
than here, and that when there is more naad
Tor II mere than abroad it will return So far
dS Ne"-1ork itself is concerned the departure
ol solu at TINS time is Of no particular moment
- iiedhS hothlng more than the departure of
Ni PiuH money Tor were the money required
mere interest rates would advance and keep it
mere. Money is steadily moving to this centre
that is more money is coming TO Neu,yorl,
from the interior than is going from New-yorl,
to the interior The Treasury is absorbing
money, 1t is true, but it will be liberated ocaio
in due course.
Inc business prosperity of the country at large
Is undmnshed The iron and steel trade which
has always been considered as the barometer
OF business, is as active it has been AT any
time since the revival in this mighty industry
took place. The concerns which produce steel
rails and structural steel are contracted ahead
for from year to eighteen months IT is rucb
the same with the concerns which turn ou+ otber
varieties of steel and iron. 1t would he aasy
for these concerns to put up prices but they
have wisely refrained from doing so Settled
prices have impaired A stability to the trade
that would not otherwise have obtained An
other great trade that is a notably sub
stantial basis is the drygoods trade Not In
years have prices for cotton and woolen and
indeed. all other kinds of goods been on such
sure foundation. The effect is seen in A steady
movement of fabrics. 1t is the same or nearly
so. in other lines. There is neither boom nor
depression ahead. but a continuance of the ex-
listing satisfactory order of things
Affairs in Europe improving The money
markets Of England and the Continent which
recently were tense. relaxing and discount
rates are declining. The geld that has gone
from New-York to Paris was sent on orders
from London London became indebted to Paris
and procured gold in New-York TO use in dis
charge or the Indebtedness London's indebt
edness to Paris, judging by the rates in Paris
for sterling exchange. has not been altogether