New-York tribune., 1903-07-28
BONDS.
THE DAYS OPERATIONS IN STOCKS

> 8 IS =
Mex Cen Is' inc. 16 -lH Wabash Bs---- SEX -2%
THE DAYS OPERATIONS IN STOCKS,
Stocks were strong in the greater part of the
day. with substantial net advances at the close
Despite the fact that another failure in New
York and one in Boston were announced senti-
ment was buIsh, and traders exhibited s.
position TO work for higher quotations. II was
believed IN some circles that the days failures
and those Of the preceding week had cleared the
financial atmosphere, and that Improvement
would be the chief feature of stock market
trading. This view. however, represented the
opinion OF the professional element rather than
the ideas Of farsighted stock market observers.
The upward movement was accompanied by
certain amount of investment buying but the
greater part Of the days business reflected the
purchase Of stocks for the account Of the short
interest Total dealings failed TO present any
evidence of important outside interest in the
market. sales in all stocks in the five hours of
business amounting 10 less than 100000 shares.
as compared with upward Of 4G0,OyO shares in
the three hours Of business on Saturday. The
heaviest transactions were supplied by Anal
gamated Copper. which advanced IL per cent:
by Atchison which advanced 19s per cent;
Brooklyn Rapid Transit which advanced 2A
per cent: ST. Paul. which advanced 3 per cent:
Erie, which advanced per cent; Mexican Cen
cihc, which advanced rs per cent; New-York
Central which advanced "a per cent; Pennsyl-
vania. which advanced 1% per cent; Reading
which advanced IA per cent: Rock Island.
which advanced 27s per cent; Southern Pacific
which advanced 2l5 per cent; Union Pacific
which advanced % per cent, and United
States Steel shares, which advanced over per
cent The market closed near the best pr ces
II the day. Cali money ruled at 90 per cent
ing to the views Of number of foreign ex-
change bankers lower rates for sterling viii be
recorded The decline in sterling exchange
brought the market within few points Of the
level at which gold imports could be made at a
profit. and it not thought unlikely that some
gold would be brought into this country this fall
from Europe, while il was considered GER
tainty that large amounts would be received at
Pacific Coast points from Australia. as $2,500000
was shipped from that point yesterday for the
account OF the United States.
further sharp rally in stocks may be re-
corded; indeed, such rally is due but the
chances. however, of a sustained bull market
at present are not especially bright. After a
long period Of extended liquidation. severe
losses and panicky markets. dull market
rather than an active bull speculation is likely
70 prevail II requires tire to encourage bull
enthusiasm after the market has been knocked
particularly as so many people have lost money
on speculative account and have been forced to
settle .heir losses by sales of their investment
issues at sacrifice prices. Moreover at the pres
ent time the banks viii lend heavily for
stock market purposes. as they must maintain
their resources to meet the demands from the
interior for crop moving purposes in the fall.
Certain interests who have lost money in Wall
Street are matchmaking the banks for calling
loans and forcing sales Of stock collateral held
against loans. but the banks have merely fol-
lowed their usual custom in looking after their
own interests before extending accommodation
70 reckless spectators. The point is made that
the banks fost4red speculation by lending money
for speculative purposes. From the high moral
plane, perhaps the banks ought not to lend
money TO Stock Exchange spectators, including
The promoters Of overca pitalized corporations,
but the banks are not concerned in estab-
fishing z moral code. but in lending money
wherever the security is sound il is useless to
blame them for the failures and losses in Wall
Street The banks. however. viii come in for
criticism If they injure the interests Of their
depositors by not properly safeguarding their
loans Bank loans increased last week. despite
the big liquidation in stocks. and the Street is
naturally somewhat uneasy over the expansion.
II is not possible 10 predict that there will De
no more liquidation or trouble in Wall Street
but any level headed man who knows the first
thing OF investment values knows that the
greater number Of securities are now at a level
that warrants investment buying. Unfortu-
nately, many investors have no available money
10 use III the present market. as they are tied
up with stocks bought al a higher level and
unable to secure funds beyond their living
expenses. The losses that have been suf-
fered VIII not paraiyze the country's indus
tries although they may indirectly affect
them The labor troubles, the speculation in
cotton that has curtailed manufacturing of cot
ton GCo6s ard cotton ssrorus q possible poor
corn crop and the collapse IN Wan Street may
c-uee setback and le2ctiOn in trade. but they
wiz not upset the foundations OF business or
plunge the country into bankruptcy, in the
1853 period. Railroads and other sound in
gesrHent properties are in . position 10 main
tain dividends through . tire Of normal busi-
Eers depression and people who believe that the
current low level for stocks fOreShaGOWs a
rcriod Of dividend reductions are not well in
rorued regarding the position q investment
-3rorertieg. One cf the most encouraging feat
lIres ia the situation. brought about by the de-
cline IN stocks. is the cessation OF capital lnfa-
ton sno stock watering operations that have
been running riot for several years. Stock pro-
nsoters viii doubtless find poor market for
their wares for several years 70 come. The pub
Ilc has studied the stock Issuing question Tor
the lsst few months ard as a consequence II IS
lie for some Of the troubles II Wan Street. be-
cause The public would not buy stocks Mr.
Keene is quite right the public apparently is no
--ssTH THsr~~r tn he FfeH