New-York tribune., 1902-09-08
THE FINANCIAL MARKETS.
STOCKS IN GOOD DEMAND.
MONEY AND EXCHANGE - RAILROAD
EARNINGS.
THE WEEK IN WALL STREET.

Trading in stocks last week was heavier than
in sny preceding week this year. Both in stocks
and bonds transactions reached enormous TO-
tails. with the largest dealings in Reading. At
crison Baltimore and Ohio Chesapeake and
Ohio ST Paul Erie. Manhattan. Missouri Pa
fifc Ne1x-Yorl Central. Pennsylvania, NortoIh
and Western. Southern Pacific. Southern Ran
v-av. Union Pacific, the Wabash issues ana me
United States Steel shares. The advance IN the
early part Of the week was accompanied by
heavy realizing sales. and these. with hlgheF
rate for call money. were responsible Tor irregu-
Iarity and many declines in the last few days
II vas generally believed that the Western ele-
7nan- sold large amounts Of stocks in the week
while il was also believed that prominent East
ern capitalists individually and in pool opera
1ions. were active buyers throughout that list
The so-called PENNSYLVANIA, Vanderbilt and
Morgan interests were doubtless the heaviest
buyers of Reading. The Gould and Hartman
interests were identified with the dealings IN
Wabash Union Pacific and Southern Paclno-
MI Gates sailed for Europe in the week, ana
whatever was done for his account was prob
3 hly on the selling side.
Although the daily total Of transactions was
large there was no evidence Of widespread pub
lie interest in the market Stocks were an
sorbed by banking syndicates and speculative
and in other cases wholly for the profits that are
expected 70 develop from the course OF values
in the rest of the year. If stocks We're no"
zz4delv distributed among the ordinary speCu-
IariZe outsiders Of slender means. the position
Of the money market and the desire Of spbstal--
tial interests to accumulate securities would
doubtless result in lower quotations SECURITIES
however, are still in strong hands while the
Willingness Of good buyers TO accept offerlrgS
AZ the current level has been clearly demon
strated in recent selling movements STOCK
values look high to people who have not 1ol-
7ov,e5 the course Of events in the business
world in the last few years. and IN the case OF
soroA Of the railroad shares market values 90
measure intrinsic worth. In the greater num-
her Of securities however. quotations are not
5asr while based on the wonderful develop
,aent that IS going on in conditions affecting
+be real worth of investments, there Is sth q
t5s margin between current quotations and
actual value. the margin being in favor OF
orerators OF the long side of the market
Tho ,,osi-ion of the money market has ceased
n. worry well informed stock market traders
Rates for call money advanced 10 per cent
last week and a higher level may be reacheo
,,afora the demand for funds from the interior
comes to an end. If speculation in stocks con-
.in,,es al last weeks furious pace sudden ad-
minutes for weakly margined operators, and
bearing in mind this possibility large margins
ousbt 10 be rlrovided. Five and 10 per cent
margins may be safe enough in duh days ou'
in a season of great speculative activity Wheh
prices are subject TO wide variations IN a day,
wise men will provide IL and 20 per cent mar
gins in all operations in the high priced shares
People who are well protected in this market
viii undoubtedly be successful in their opera
tions on the bun side Of speculation There are
few unfavorahle factors in the situation. and.
save for passing reactions there is little lkeli-
hood Of j change in the tendency Of values
Speculative reactions. it should be borne in
mind sometimes cause drop of many points
in an hour and. although recovery is certain
the next hour. brokers are not philanthropic
as to carry their customers over the break on
depleted or reduced margins Reading stock
advanced from the opening last Monday at 40
to 7S1k wednesday. while it closed Thursday at
.3zs This is an instance of possible fluctuations
in bull market.
The larger interests are well supplied with
tire money, and the higher rate for call funds
is therefore not interfering with their market
operations. Serious disturbance in money is
not expected. owing 10 the preparations that
have been made to avert such a development
As a result OF these preparations the present
monetary situation is much stronger than it
was two weeks ago. while the outlook presents
nothing which uneasiness may he based In
the last two weeks loans of the New-York
Clearing House banks have been reduced over
500. 100000. Foreign exchange market condi-
rions are thought to point gold imports this
fall. but even without assistance from Europe
the local banks viii doubtless be able TO handle
the situation. There is now more money in the
country than ever before on record, while in
circIlfarjOn there is moro
than there was this time a year ago the
total amount being s.. 2.2G4 .932, ,9i5. which on an
estimated population of 79,344,o0o makes a
per capita circulation of S2S -. against S2S IS
a. wear ago and S26 50 n 1900 The local hanks
hold in cash 1924 $40, 900. and temporary ab-
sence of a reserve above the - per cent limit
would be no reason for disturbance if the banks
were unwilling TO take advantage of the situa-
tion by screwing up money rates.
Railroad earnings continue heavy, and de-
change in the countrys prosperity Some of the
corn carrying roads show decreases from last
years records. but for the last twelve months
results on the corn roads have generally been
the year before The general crop situation is
excellent. and the poor government report on
cotton has not upset Southern and Southwestern
railroad managers. According to the compila-
ton Of The financial Chronicle" the cotton
crop for the year ended September amounted
10 10,11o,453 bales, and. after exports and spin
,ers' takings, there a stock on hand of
1S3 $50 bales II may be recalled that the gov
ernnlent at this time year ago estimated the
sf that time were poorer than they are to-day
and il may, therefore come TO pass that the
new crop viii turn out much better than indi
Gated by the government hgures, with yield
IS large as if rot larger than in the preceding
crop year
GOVERNMENT BONDS.
Government bond quotations compare as follows