New-York tribune., 1903-03-09
STOCK VALUES
THE WEEKS OPERATIONS IN STOCKS.


counts in the greater part of the week Ine
course of trading reflected the presence IN 'he
market Of aggressive spectators who were
actively engaged in working for lower prices,
their chief efforts henE directed against the
Western railway shares. notably Union Pacin0'
Operations for the decline were helped pH 'he
frner tendency in the money market "h'h
led TO calling Of many loans. and the reouc-
fion of speculative hull accounts that had neeh
carried on borrowed money. Liquidation was
eIso induced bv the failure of Congress to pass
needed currency reform laws. The importance
Of this failure WAS wildly exaggerated in WALL
Street. indeed il was apparently assumed that
the adjournment Of Congress without making
the AIdrich bill law would create new set
OF conditions adversely affecting the monetary
eitu.tion. II is. Of course. unfortunate 'hat TIE
AldrIch bill was not enacted at the last session
Of Congress hut its failure To pass mas not
damaged the situation or eliminated the possl-
htI,t,, of satisfactory currency reform legtsla-
tion in the next Congress. If affairs IN the
monetary situation become acute assist
.,oe from, the Federal Treasury will
he given lust as il has in past periods o1
strineencv The present Secretary of the Treas
ury may be depended upon to relieve the sl'ua-
ton whenever such action becomes necessary
The demand for money for mercantile puT-
poses is active. owing to the progress OF III
oustrIsl prosperity in this country Ihere Is
also a big demand for security purposes. as
for instance. in the financing of the enormous
.n,ou7ts of new capital issues that are con-
stsrtlv being placed the market AS a re-
suit Of this demand for accommodation money
.s arr, and not AZ present. in abundant sup
-I,- for ordinary stock market operations. al
4h,ucb borrowers who able to place large
margins against loans find no difncui'S III
securing funds for speculative purposes. Inc
situation is sound. There is no uneastness IN
banking circles for the simple reason that
the intelligent members Of the hanklnR COM
,,unitv know that the present situation is not
,hs outerowth of abnormal artificial con-
d,t,ons but the direct result of healthfu ex-
mansion in the country's industries The hanks
a,4 growing stronger every day Profits are
heavier than ever before and loans have never
been hacked by better security. The Controier
Of the Currency said few days ago mat 'here
were no alarming signs in present conoiu"nS'
and that the coseness OF money in Wall street
vss due TO an abundance Of business ra'her
than 10 a dearth of funds. This is summary
OF the situation that is worth bearing in mlno.
eau money advanced TO e per cent last week,
while time funds were quoted at from D TO
81 per cent according TO the period Sterling
.~cbsnpe WAS weak and lower. under the IN
eusnca Of GOOD sized offerings Of bankers loan
hills and commercial bills The transfer OF
local loans TO European account was renec'eu
in the loan item in Saturdays bank statement
showing a decrease Of over SloOh.Nn IL Is
oUite probable that this statement, Vhlcn
figured out q reserve above legal requirements
~ o,Iz S666 a75. will mark the end of un-
1avora bic hank exhibits for this season. as 'ne
hirh rate for money is attracting funds to this
..-. ,,,iye local hank loans are being reduced
There is over S1On0n0OO0 more money In cir
c,,Iafion in this country at present than theTe
was at this time a year ago according IN 'he
statement of circulation issued hy the treasury
DEPARTMENT last week. The effect or mcredseQ
circulation as far as New-Fork is concerned Is
Offset by the with 1rawals from the local nanKs
for Suh-Treasury account Of large sums OF
money the governments heaviest receipts helhs
made at this centre. while its payments are dls-
.r,hr+Ad all over the country. NewYork IS
called upon to finance the business transactions
OF the whole country. yet its supply or money
* steadily reduced by enormous payments to the
eub-Treasury Of funds that ought TO be LEFT IN
the channels Of trade. The recurring perlods OF
etr1ngencv IN New-York money rates are due
TO the Sub-Treasury system and not 10 the
operations IF the banks with the interior.
These periods cause acute disturbance in local
circles and severe losses in speculation. while
they interfere with trade and upset many husl-
ness transactions. Foreign loans were neso-
tieted with ease last week. a, reflection OF the
confidence of European bankers in the sound
ness Of the situation in this country. and an
indication Of the large amounts of idle money
IN Paris and Berlin While the supply Of COM
YrercisI bills in the local market not heavy
IN the week there were indications Of a larger
euppIy before long as the foreign demand for
our breadsiuffs was better. with shipments or
corn heavier than in any week since March,
1901. The export movement Of cotton on new
contracts has been held in check by the course
OF speculation On the Cotton Exchange, foreign
s2inners naturally being UNIV Hing to enter the
market with prices fuctuating wildly under the
influence Of a war between the bull and bear
forces in New-York. More cotton is coming
into sight and is promised than the cotton bulls
evidently counted on. hut this development is
wholly in line with the results that usually at
tend the efforts of spectators who try to
rer the commodity markets.
There were many good buyers NJ stocks last
week on the decline. II values should 60 lower
this week sales will he taken by strong financial
interests and every stock sold will find a buyer
Saturdays bad bank statement and the sus
pension OF mercantile house. announcement Of
which was made after the close OF business.
NAV frishten some holders into liquidation in
to-day's market and encourage renewed bear
pressure but II may not he well become
thus.astic over this prospect, stocks have
already suffered severe losses while the short
interest is large and public holdings light.
No damage was done real values in last
weeks unsettled market The decline was
snecuIative in character. the result of passing
factors that will leave mark on the actual
vsIue Of investment securities. Some people
who are easily frightened sacrificed good stocks
and bonds losing sight Of the fact that there
have been no adverse changes in underlying con-
ditions and no prospects OF decrease in the
earning power Of the railroads and industrial