New-York tribune., 1903-04-30
BONDS.
THE DAYS OPERATIONS IN STOCKS

THE DAYS OPERATIONS IN STOCKS.
Although the volume of business in yester-
days market was light. the prices were gener-
ally strong, with net gains in the greater num-
Der Of issues at the close The demand Tor
stocks came from a good class of buyers, many
r.preseutative Wall Street houses having orders
,or fhe account of substantial interests, espe-
cialIy for the account Of people who are the
possessors of large financial resources Buying
~ thi. character generally precedes an active
inward movement in securities. 1t is worth
noticing that sentiment the Stock Exchange
.n6 9, brokers' offices IS undergoing the change
that usually marks the end of active operations
for lower prices and the beginning of move
-neut toward higher quotations. a reflection OF
which is found in the current market letters of
leading banking houses. Active buying was re-
-orted in the Erie issues, which advanced l42
for the common. 27s for the first preferred and
Sis for the second preferred. While there was
also an excellent demand for St Paul. Balu-
more and Ohio, Manhattan, Missouri Pacific.
TIE Mexican issues, Reading and Union Pacihc-
Inside buying reported in st LOUIS ana
San Francisco. and in the bond market in
Wabash debenture Bs. which we're by Iar ire
most active issues dealt in There are many
pood reasons for the purchase of the last named
bonds Among the industrial shares Peoples
Gas was feature at a net gain Of z points
The industrial shares rule are selling at
g level many points under their intrinsic worth
and we'll informed market judges believe that
in the course of the next few months marked
appreciation will take place in the greater nIm-
her of issues Sound industrial shares yielding
from 4 70 10 per cent are in many cases quoted
~ figures that are not much above non-divi-
dend having level while there are many issues
that are selling under railway stocks which
have never paid dividends and which have no
Immediate prospect of dividend returns Take
for instance American Car and Foundry, United
States Steel and Corn Products. These issues
are 4 per cent stocks that yield about 10 per
cent while they are selling on level with rail-
road shares that not in the dividend column
The industries of the country are established on
2 firm foundation. and the industrial stocks
represent concerns that are making the country
prosperous There has been no speculation in
The industrial stocks in the last year In this
time however these issues have been growing
in intrinsic worth.
The position of the foreign exchange market
does not encourag ge the expectation of heavy eX-
ports Of gold -his spring. A few insignificant
shfpments may be made but outward move
raent Of this character will not upset the money
market and it should furnish no reason for
liuuidatfon in securities. While the money mar
le, is at irs current level there certainly is no
reason for llnea siness over the strength in ster-
ling exchange rates. With call money at 2la
per cent and time funds for practically al
periods az q little above per cent the financial
situation at this centre contains 10 element on
which may be based an adequate reason Tor IN
essiress in stock market circles Receipts Of
currency from the interior continue largely IN
excess of shipments, while in their transactions
with the Sub-Treasury, the local money instltu-
tions are still gaining q substantial amount OF
money each week. These conditions viii doubt
less rrevaiI for many weeks to come. and II is
therefore likely that the local money market VIII
enjoy comparative ease throughout the summer.
The rapid increase in the country's exports OF
-nerchan ndise foreshadoWs gold imports in the fan
Foreign debts on American account have been IN
srear part liquidated in the last eight months
Al the present price of money broadening
market for securities could easily be brought
about il the so-called public would decide 10
take an active part in speculation. So far there
have been no indications of public demand for
stocks and bonds, but commission houses are
receiving encouraging inquiries from their Gus
toners regarding the advisabiiity Of buying
stocks et prevailing prices.
Commission houses almost without exception,
believe that the current market presents excel
lent opportunities for the purchase Of valua bic
securities at an attractive level Of values In
the greater number of cases prices are from 20
70 20 points under their best quotations in 1902
while their intrinsic worth is far greater than
il was a year go. Improvement in the net earn
:ngs of American railroads is proceeding at a
most encouraging rate. and this improvement is
adding value 10 all investment issues. Increases
in net earnings are not being made at the ex-
pense Of the ply scal condition OF the properties
as expenditures from earnings continue largely
in excess of the heavy payments that were made
Last wear The gain in gross receipts Is enor-
nous on railroads in all parts OF the country, and
as a consequence the income is sufficient to per
nit large operating expenses while leaVing d
substantial sum for net accounts interests that
are quietly accommodating securities recognize the
value OF the current favorable factors IN the
situation as influences on the future price OF
investment securities. Later IN the season the
general public viii doubtless appreciate THESE
factors ard take an active interest in specu-
fafive movements The statement that all the
lad news is out appears JUSTIFIED by recent
developments. And the prediction that the mar
ket viii gradually work higher Is warranted by
me position OF affairs IN Wall Street and
throughout the country
THE DAYS OPERATIONS IN BONDS.