New-York tribune., 1903-06-15
WEEK IN WALL STREET.

Investment buying developed In securities last
week At time when the market was hea'hy
,o,,ersold Efforts to cover short contracts were
met with scarcity Of stock, and the cornpe'i-
tion of speculative and investment buying NOM
inally caused a sharp reaction from lhe ~"
prices made in Wednesdays market Inc RAINY
left the general level of active issues about 80
share sboxe the lowest point of the week and at
about the range prevailing on June J. Accord
ing 10 precedent the rally ought TO go Iurthel'
while If values are 10 move in line with the
actual worth of investments materlaI aPpreeId-
tion in market quotations will take place Ihe
course of trading this week will show whether
- moi rrices are sufficiently attractive TO induce
. eustained publtc demand. Investors were
b.ax-, f,,vers last week but if they believe that
the bear campaign is to be continued they may
naturally wait for cheaper quotations peiore
completing their purchases. According 10 GER
tain big operators who have been prominent on
The short side Of the market, the decline mas not
YET run its course, but their opinions may re
feet the desire of the individual rather than the
probable course Of values.
Investment shares are now selling on an at
tractiye basis and genuine investors are apie 10
b,,v high class shares that return from Az to o2
nine months ago. Chicago and Northwestern
for instance has declined in market value over
one hundred points, its investment yield being
advanced thereby from 2i5 to about AZ per cent
Purchases of New-York Central at present
prices carry return of over per cent against
a return on purchases made last summer oI less
=han & per cent. Missouri Pacific at It's 10"
1,ont last week represented an investment re-
turn Of 505 per cent compared with a return OF
2aS per cent at its high price Of l9e2 Atchison
,-e.errad returned at last weeks low price $40
ner cent. against 4.63 in 1902, and st. Paul 40
rer cent. against 352 nine months ago There
ara many cases where investors may secure ab-
s,,,+e bargains in the industrial list as well as
q, tho railroad list and it is interesting to note
that tbe decline in the industrials in the bear
campaign of the last nine months has been snlall
in comparison with the loss in the railroad
issues.
Industrial conditions throughout the country
warrant confidence IN American securlues- Ahe
.ttr,ation is sound and the volume Of trade SHOWS
no indication of falling to a point that VIII al
feet earnings. All railroads reporting Tor May
show 2 gain in gross income Of ia per cent
over The same time year ago, and lot the lISI
week in June substantial increases are reported
sxcen+ among the roads affected by the Western
floods Tn the month Of May the output OF pig
,ron amounting TO /, ,75s 423 tons. established 4
new high record, and. despite the cheek 10 lhe
structural iron trade by labor strikes, operators
of blast furnaces forced production to the maxi
mum CAPACITY of the works thus refecllne thelr
confidence in the future. Labor troubles showed
die,inct ir7provement last week. especially in
This CITY Bank clearings were heavy. and Is
per cent larger than in the same week year
aeo increases being reported in all important
cities Crop conditions as set forth by the gov
ernr77ert-s official report for June l are far
stronger than indicated by preliminary estimates
made by various investigators In the west
There has been a material falling off in the win
ter wheat percentage as compared with mohlh
ago. hut. according to the government hgures
this wears harvest viii show big yield while
euring wheat conditions also foreshadow most
satisfactory crop. The wet weather in the corn
belt has seriously interfered with the planting
Of that cereal but with normal weather in the
rest of the season farmers viii be able to har-
vest good sized crop. Late planting may bring
the maturity Of the crop into the frost season,
and this is the only danger which ought to be
considered at this time. This country is in a
position TO stand year of poor crops. and If
The harvest of 1903 should be light the industrial
prosperity Of the United States viii not be en-
dangered. The rains in the East Of the last
week will prevent serious financial loss 10 the
farmers in this part Of the country.
Sterling exchange was easier last week while
money rates showed no particular change from
the higher level established in the preceding
week. The impression prevails in foreign eX-
change circles that the present easier tendency
viii not last but further heavy shipments of
gold are not expected at present. The nquida-
ton in securities in the last ten months repre-
senting shrinkage in values. based on capita-
cation of over S1.200000oc0, has had no ap-
preciable influence on bank conditions, SO far
as can be learned from the weekly bank state
ment; loans. for instance, standing at
S903. .362, 600. against S9l0040000 on September
]: deposits at 1856 SO 700 against $685. 9SS. 800
ten months ago. while present cash holdings. as
compared with September l. about $4,000
600 smaller. The character of bank loans how
ever. has changed. as heavy speculative selling
;n stocks has caused a corresponding decrease
in the loans made to spectators, but this de-
crease has been offset by the transfer of loans
held abroad TO local account In last weeks
bank statement, however. the liquidation in
stocks reflected in a decline of nearly S12,-
000 600 in loans.