New-York tribune., 1903-04-27
THE FINANCIAL MARKETS.
Stocks in Good Demand and Money Rates EangHeary Railroad
Earnings and Gro7cing Industrial Act1ity.
THE WEEK IN WALL STREET

Stock market trading last week was faVoIdUiS
Influenced by the relaxation in money rates. ny
the decision permitting the Northern securities
Company to pay dividends pending an aPpea'
Of the merger case TO the United States supreme
Court. and by notable Improvement in the iaoor
situation throughout the country. These 'ao-
tors were effective inducements for operations
on the long side Of the market. and their weight
IS arguments was not materially offset by the
7exelon,,,ents n the Far East which caused
moderate bear pressure against prices at the
close Of the week British consols and other
foreign government securities, as well as our
own government bonds. 60 not reflect uneasl-
ness in banking and investment circles over the
Manchurian situation. Developments in China
NAV exert 2 passing sentiment but it is not
rrobable that they will disturb the peace of the
world
Affairs abroad moving on lines that ousht
10 help the American securities market. Mon
etary conditions in London and in Continental
financial centres are improving, while general N
dus;ries are expanding on healthful basis In
foreign investment circles a demand for Amer
lean stocks and bonds is developing, owing 10
the increase in the supply Of money IN Europe
and TO the growing confidence in the stablllty
Of the business situation IN the United States.
The income tax in England, which was 4o-
ranced as q war measure, has been reduced ana
The duty on grain imports has been abolished.
factors which will serve to increase the supply
of money in the channels Of trade and induce
sreater activity in the securities markets Eng
land is now beginning TO enjoy the benefits OF
the end Of the Boer war. while Europe in general
IS better of as q result OF the enlarging output
Of the South African gold mines. This is also
favorable influence in the financial situation IN
this country, especially in respect TO gold ex-
ports which are no longer urgently negotiated
eor foreign account There have been no
gold shipments from this country TO Europe
since last August when over 100000 was
sent to Paris Another European factor that
will work in favor Of the United States this
wear is the poor outlook for the crops in the
wheat growing districts abroad This insures
a good market for winter wheat yield. which
will from present estimates, break all past
records.
An encoura ging factor IN the Wall Street
situation is the hopeful sentiment IN banking
circles over the money market outlook Bank
ers are now looking forward TO a period Of ease
in money rates until the fall demand for crop
moving purposes arises. and they do not expect
1,nfavo-sble Developments as a result of the
transfer Of cash to the reserve funds Of the
trust companies. movement that is DOW unoer
way So far, TWO trust companies have an
nounced their intention Of withdrawing from
the Clearing House privileges and it is thought
likely that other companies will follow their
example IN severing connection with the Clear
ing House Association. The known movement
Of money in the last few weeks has inol-
Gated a much larger increase in cash holdings
in he
discrepancy doubtless being due to Withdrawals
pv the trust companies that intend to continue
their relations with the Clearing House Recent
liquidation in the stock market and the check
10 the corporate consolidation craze have re-
lieved the money market of serious burdens
while the decision declaring the Northern Secu-
rites Company an Illegal organization and last
Mondays ruling that dividends could be paid
pending action 10y the Supreme Court on the ap-
peal have been favorable developments for the
local monetary situation Call money in the
week averaged 81 per cent. while sterling ex-
change was firmer. owing TO the decline in
money rates.
Railroad earnings for the second week in April
show a gain OF over Il per cent as compared
with the same time last year, when traffic re-
CENTS were unusually heavy. From July l to
April II the gross earnings of the chief roads
in the country show gain Of 1872 per cent
while net earnings from July l to March 81
show an increase OF about 8 per cent In the
month OF March net earnings increased 46 per
cent over March. 1902 furnishing a most note
worthy development in the railroad situation, as
IN the preceding months Of the fiscal year ind
cations pointed toward a gradual falling off in
net returns. 1t now appears likely that net
earnings will expand rather than contract and
that the record for 1903 viii run far ahead Of
the best preceding year.
That growth in railroad earnings will con-
tinue no one VINO examines the character of con-
ditions underlying the current railroad business
can doubt inasmuch as these conditions con-
tain the promise Of expansion in industrial ac-
tivity throughout the year in all parts of the
United States. Bear operators IN Wall Street
have until the last week been selling stocks
short for the last eight months. but the accom-
panying decline has not reflected adverse
changes in the business situation or fore
shadowed the near approach Of the end Of the
wave OF industrial prosperity that began several
years ago. The decline in stocks from last
years high prices has been due in great part TO
conditions that do not extend beyond Wall
Street. but it may now reasonably be expected
that the conditions outside the Street viii exert
a considerable influence on stock market values
in the direction Of higher prices
Excellent buying characterized the dealings in
many issues last week, notably n the so-called
Gould shares. Baltimore and Ohio and some of
the Industrial issues The Wabash debenture B
bonds we're the chief active features in the bond
market, investment buying being a prominent
feature in these issues, as well in all OF the
Gould group Manhattan and Missouri Pa
ci6c were in demand. and higher prices for both
ware predicted Manhattan is 3 guaranteed