New-York tribune., 1903-07-13
INVESTMENT
THE WEEK IN WALL STREET.

at various LITleS II the week, the general
Of values presented little encouragement for the
advocates Of higher prices. Investment selling
was reported throughout the week, especially in
some OF the high grade issues, such as New
York Central and sales Of this charac cter nat
Uraliy created adverse effect on speculative
sentiment and induced renewec operations on
the short side Of the market The break in New
York Central stock which carried the price OF
that issue 70 the lowest point OF the last five
years, vas not explained by news developments
regarding the affairs OF the company but It was
generally believed in the Street that the decline
represented the work Of a powerful bear party
operating on the expectation that the company
VIII soon put out an additional issue Of stock
The transactions Of the bear element in New
York Central were similar TO those which wers
conducted in Pennsylvania prior to the placing
% the S15o00eD new Pannsylvanla stock II
New-YoTk Central declines in proportion to the
loss suffered by Pennsylvania IN the recent bear
campaign f. that issue. It VIII reach level we'll
under that now prevailing There is no good
reason for the sales Of this stock. save on the
theory that profits may be made by selling at
the present prices and buying back at lower
quotation. II the company decides TO issue rev
STOCK IN connection With It's proposed terminal
improvements IN this .ity :he operation VIII
coubtless be just as successful as was the recent
financing Of the Pennsylva;lia's new stock issue.
The current buying demand apparently IS not
sufficiently heavy 10 offset the pressing for sale
Of high class investment securities. Various
theories have been advanced for the liquidation
IN these issues, and the one most generally &C
cepted involves the necessity which now con-
fronts many people for The conversion Of securt-
ties into cash for use in their business ard prt-
vate operations. There has been no important
Teinvestnnent Of July interest disbursements. It
IS said in some vel informed quarters that in
vesrors have for the last two years been carry
ing stocks on borrowed money for speculative
account, and that they are now taking up the
stocks with their interest and dividend incomes.
The general level Of high class railway mortgage
issues is attractive for people who have idle
funds for investment purposes. It does not
seem likely, however. that al important demand
VIII develop at present either for investment or
speculative account Tie course Of affairs IN
the last few months. especially on the Stock TX
change. has produced an attitude Of great con-
servarisrn and even tin.dity, among Spectators
and investors; also among men engaged in com
mercisI pursuits. This conservatism viii doubt
less serve 10 help the business Of the country
and help 10 lay e foundation for further business
expansion later on in The season and increased
activity n the investment market The IN
favorable Developments of the last six months
have naturally affected trade TO some extent
but, according 10 the reports received by the
commercial agencies, The situation throughout
the country presents few weak spots and no in
olcstion OF collapse il The Industrial activities
Of the land
The big break n the cotton market early in
the week was followed by e recovery, with pre-
dictions from the powerful bull element IN the
cotton market that prices would return to the
high level established two weeks ago The de-
cline IL cotton foresRadOwed il was thought the
end Of the mad speculation In the New-York
and EeW-OT-eans markets. Il would be most
fortunate for the country's export trade and for
The couurry's cotton goods trade II Dull specuIa-
ZION II the product could be brought 10 an I'M
mediate close. While the operations Of the bull
clique have been most profitable TO the mem
ters Of the pool. they have resulted in great
harm 70 The cotton trade in the United States
Cotton exports have been checked, and within
the last few weeks We have actually been i'm
porting cotton from Europe While exports OF
merchandise are falling of. imports show no
decline. and this fact, taken in connection with
this c0UnC-y's foreign debt and uhe enormous
amount Of money that American travellers are
spending abroad, naturally induces strength in
The foreign exchange market and leads 10 gold
exports. Nearly 100000 in god vas exported
last week, and further shipments viii be made
unless there should be important change in
local money rates and sterling quotation in
Paris. IT striking increase in the outward
movement Of this country's merchandise. Ger
people II the cotton district express the be
LEI rnat Europe VIII be forced to buy our cot
ton. Irrespective Of price. but they fail 10 take
into consideration the fact that other countries
than the United States are becoming heavy
growers Of cotton. and thar the high prices
here viii give them q good market for their
product in England and Germany
While large shipments Of gold have been made
from New-York- il Is encouraging 20 note that
gold Is beginning TO Je received at Pacific Coast
points from the Alaskan and KIondike mines,
L T. also interesting 10 record the fact that
within the last twelve months the receipts Of
gold on the Pacific Coast and the production Of
gold IN this country have largely offset the
shipments Of the metal from New-Yorlt.
Further heavy shipments will doubtless cause
advance IN the local money market which
VIII be followed by an inflow OF money 10
this centre Call money rates last week aver
aged 3 Per cent, while time money ruled at from
4 TO 81 per cent. accordIng 10 the date In the
foreign financial centres there was no especiaI
change in money market conditions, and no i'm
portant Developments affecting the -eneral mar
ket situation. Trading on the foreign exchanges
IS as duh as II IS IN NeW-York, and, so far &.
foreign interest II American securities Is con-
cerned, II may be said that dealings are confined
10 Insignificant totals. The reported decline in
the price Of iron last week together with the re-
ported falling of IN earnings OF the United
States Steel Corporation for the last six months
as compared with the preceding six months.
created bear sentiment on the steel stocks caus-
Ing decided weakness IN United States Steel
common and preferred and Tennessee Coal and
Iron. The decline in prices may help The trade
Isl no "a Tar7 md