New-York tribune., 1902-07-21
THE FINANCIAL MARKETS
STOCKS IN GOOD DEMAND.
MONEY RATES CONTINUE EASY-RAlL-
ROAD EARNINGS.
THE WEEK IN WALL STREET.

The apparent end or the deal IN july CoiH ~
Chicago and further favorable progress by the
growing crops were leading factors in the week S
upward movement in securities. Chicago specu-
lators in corn turned their attention to stocks
early in the week. and, j consequence, the
railroad shares especially the Western and
Southwestern issues made important progress
toward a higher level. The maintenance Oh
present crop conditions will insure contlnu-
ance of Industrial prosperity throughout the
country. Big crops mean increase IN the
wealth of the people heavy railroad earnings
and larger exports to foreign nations. Inc lal-
ing off in domestic exports in the last fiscal
year was due almost entirely 10 the parllal IAN
ure of the corn crop. shipments of corn IN the
year amounting TO insignificant figures as COM
pared with the year before. Corn exports
year ago aggregated 173S796S4 bushels While
in the year ended June 30 the total was only
little over 26000OOo bushels.
In the last fiscal year the exports of merchan-
disc were in value 81 3S1 033 401, S1oo I3l 'S4
less than for the preceding year. but ohIS
Sf2OOOeO0 less than for the fiscal year ended
June 30, 1899, and about SlJOOooeoo more thah
in either of the two previous years. But in the
e wear ended June 50 1901 there were tremendous
= harvests here and crop shortages abroad,
condition which explains the heavy export
movement Of that year. 1t can readily be seen
therefore that A big corn crop this year VIII
add to the countrys material prosperity. IN
view Of the heavy falling off in exports laSl
wear railroad earnings have been extraordinary
even the returns from the roads that are most
dependent on the crops for traffic showing aS
a-rule increases over the results of the preCeu-
ing year. This gain in earnings refects the de-
naand for general merchandise and the IN
creased purchasing power of the people Inc
latter is also reflected in the gain in imports IN
ar7o,rrtir1e in value SI9. ISJ, ~.
The money market presents no feature calcu-
1ared 10 cause alarm in banking circles. IN
decd the position of the market is highly satls-
factory. despite the possibility of gold exports
this week. The end Of the Chicago corn specu-
lation has removed a dangerous element from
the market as there will now be no heavy call
for money from this centre until the usual crop
movement demand develops. The local banks
continue TO gain from the Sub-Treasury While
receipts of currency from the interior are well in
excess of shipments. Since the first of the fiscal
wear the excess of government expenditures over
receipts has been upward Of S12OOopoo and as
a result the amount of money in circulation has
been increased thereby. While the country Is
in debt TO Europe. there is no pressing demand
for settlements. and if the crops turn out as eX-
pected enough exchange may be created not
only TO liquidate foreign Indebtedness but to
establish credit balance abroad with gold inn
ports at this centre. In the last week London
was an active buyer of stocks in the local mar
ket Sterling exchange was however, near the
gold shipping point, while conditions in the
Paris market suggested shipments of gold from
here by the next fast French steamer. This
country can easily spare the metal especially
as the home supply will soon be increased by
receipts of gold from the KlOndike.
Aggressive buying reported in the week
in Chesapeake and Ohio. Chicago and Alton,
Atchison the Gould shares and some of the
cheaper priced issues. Buying Of Chesapeake
and Ohio was traced to the Gates element. and
insiders in the so-caled Gates crowd advised
their friends to hold the stock for much higher
prices. There was no news regarding the prop
erty, although it reported that the Penn
sylvania had secured absolute control Of the
company. Pennsylvania and New-York Central
have been joint owners of the Chesapeake and
Ohio but the Pennsylvania interests have pre-
dominated. Concident with the report that
Pennsylvania in supreme control Of Chesa-
peake and Ohio came rumoT that the New
York Central had made a deal by which Read
ing would fall into its hands. The idea that
Wabash has secured the Reading apparently
has been abandoned Atchison continued its
upward movement. and talk Of a , per cent divi-
dend was heard. Notwithstanding its advance
Of the last week Atchson common is not con-
sidered dear at current prices per cent
stock while in well informed quarters ii is con-
fdently believed that the stock viii eventually
sell at par. Atchison preferred, > per cent
stock sold at 1015s yesterday quotation that
is remarkably cheap from the point of view Of
the companys earnings, physical condition and
prospects and also in comparison with some
other > per cent issues that selling many
points above this level The high grade issues.
such as New-York Central and Pennsylvania,
were strong features; also many of the cheaper
stocks as Colorado Southern. Chicago Great
Western. Erie and Wabash. 1t is thought that
Colorado Southern has a good chance Of reach
ing a higher level
In the industrial list dealings not heavy
save in a few issues, including Colorado Fuel
and Iron and the United States Steel shares
Irrespective of the merits of the various suits
pending against the United States Steel Cor
poration. it cannot be denied that. based on the
condition OF the steel and iron industry its
prospects for the next two years and the
nous earnings of the big steel combine" the
present prices of the United States Steel Sc
curities are ridculously out OF proportion to the
actual worth of the issues Buying of the car
building issues is based on the heavy earnings
and, in the case Of American Car and Foundry
on the understanding that the common stock
dividend will be advanced to 3 per cent in the
fan. The enormous volume Of traffic the
railroads has returned a rich harvest for the
equipment companies, and no better evidence Of
the country's prosperity can be presented than
The enormous orders that being placed
for and locomotives. Although the
various railroads have added heavily to their
equipment in the last year. they are looking
forward TO q car famine when the time comes
20 handle the movement of grain. Such factors
3 naturally i4crease the value of the securities
OF the sound and locomotive building con-
Germs.