New-York tribune., 1903-01-12
THE WEEK IN WALL STREET.


securities market in the last week. Dealings
reached enormous totals while many conspicu-
GUS advances were made in both the railroad
a:ld industrial departments. There was also a
good demand for bonds for investment ana
snaculstive account especially heavy dealings
being recorded i'm Rock Island Is, Reading gen.
srsl as Union Pacific convertible As, Continental
Tobacco Is Erie general lien As and Wabash
,aebenture IS The bond list contains many at
tractive mortgage issues selling on a basis tnat
Yields roora than per cent; i'm some cases as
rnuch and more than ; per cent, as. for in
stance Continental Tobacco Is, which return
nearly 6 per cent Erie general lien As yleld "a
rer cent: also Rock Island As. Erie-Pennsyl-
ysnia collateral As selling at 93, are cheap, as
they are backed by the best kind Of collateral
indeed the whole bond list presents few IN
stances where prices dear under normal
money market conditions. OF course if money
rates could be maintained at the recent high
level investment values would not look cheap at
present prices.
Monetary conditions are moving in favor OF
-be h,,xer Of securities Rates are easing under
the influence of increased supplies OF funds at
this centre Money is moving TO New-hoTk
from the interior in large amounts, while Treas
,,--v sbsorptions from the local banks are offset
by psyn7ents. Predictions made in the fall that
there would be important movement OF
sc,tz,,tv Of trade. were not based safe con-
,l,sior1s SIS in the last week the excess of re-
CENTS of currency shipments amounted to
inward of S11.oe0. 600. There is evidently an
sr7nIA sl1rply of money throughout the country
10 handle the current growth in industrial ac-
tivjfv the return flow of funds from the west
representing the money shipped from here last
fall TO finance the years harvests- There is, as
2 matter of fact. more money in the country to-
dsv than ever before record. and there is no
reason To expect stiff money rates except in the
regular periods when money is accustomed 10
leave this centre. A plethora OF money is not
looked for however: neither is it probable that
al, money rates will rule at 162 per cent
Declining money rates last week were accom-
,s3ied bv 4 frner tendency in the foreign ex-
change market. and talk Of gold exports was
induleed in The local market is getting INTO
,,osition which will not be injured by an out
ward movement of gold, but the chances at
present are not in favor of an important out
ward movement Of the metal This country
,n5ebtedness abroad is rapidly being liquidated
Fxports from here are increasing, particulariE
,be exports of wheat and corn. shipments Of
,.bsa+ last week amounting TO 5.09S.951 bush
Gle against s 567 10 bushels in the same week
. year ago and shipments of corn amounting
80 s56 9S6 bushels, compared with io6,o'3 last
wear The wheat crop OF ISuZ was heaNy
enough to make large exports possible through
out the year while the corn crop was the largest
on record. thus insuring d record breaking out
ward movement of the cereal in l9o5- Inc Dig
crops Of 1902. the strength in the IRON ana
+eel trade and the healthful condition OF trade
n, general will furnish the foundation for any
rise in stock values that may take place THIS
,-ear 4 January boom is now under way
Prices have advanced without important inter
,l1rtjon since the middle of December, ana as
a consequence quotations are many points apo'e
the low record made in the fall. They are yet
however. well under the high level Of 19o2
Unless there should be radical change IN con-
di+io-s governing the actual worth Of invest
r77erts quotations will doubtless be pushed as
high If not higher. in the current year
Notable activity has developed in the medium
and low priced shares. There many good
,eaeors for the current interest that is dis
,laz-ad i,7 this class OF issues especially in the
industrial department, the chief one being the
wide margin between the market value and the
actual worth of the security. In the bull mar
ket of 1902 the industrial stocks failed to snare
10 anv marked extent in the upward movement
notwithstanding the decided increase in their
actual worth. and it is, therefore, now possible
10 secure attractive issues at prices that yield
far more than the railroad shares The greater
number of industrial stocks quoted on the Stock
Exchange represent properties that will give as
good IN account of themselves in times OF
business depression the railroad companies
viii give II viii be found by reference TO the
dividend record OF industrial companies IN pc
,iads of industrial dulness that disbursements
IN Stockholders have averaged well up to similar
disbursements by the railroads The leaolhs
1,e1onrnents affecting the industrial shares last
week were the action by the directors OF the
American Car and Foundry Company, increas-
1loa zrfp
cert 10 per cent on the common stock the
,o,onanvs report for the quarter ended No
,,eroher showing an enormous gain in net earn
ings over the same time last year, and the re-
port Of the United States Steel Corporation lor
1902 After paying all charges and dlVldehds'
The big steel company showed a surplus OF S5t'-
s41 .J65- The United States Steel Corporation
ought TO be able TO accumulate enough surplus
in periods of business activity to handle the
dividends IN the lean years, when as Mr. Car
regie SAYS the steel industry is pauper-
Announcement that the Pennsylvania Rail-
road would increase its capital stock by S2.'O,-
aoooeo that control Of the Reading had passed
TO Pennsylvania and Vanderbilt interests, and
that Gould and Pennsylvania interests had
settled their differences the entrance of
The Wabash road into Pittsburg, were leading
railway developments Of the week The Gould
shares were in excellent demand; also missouri
Kansas and Texas in which the Goulds are sup
r.osed TO have large holdings Missouri Pacific
Missouri. Kansas and Texas and Wabash en-
,oz,ed prosperity in 1902. despite the corn crop
failure Of 1901. The corn crop was particularly
heavy in 1902 in the Missouri Valley and Kan
sss and Texas territory. also in the Wabash
territory and consequence these roads
should enjoy phenomenal earnings in 1903
criticism of the Pennsylvania's proposed in
crease in stock is apparently based on the idea