New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-07
THE WEEK IN WALL STREET

The course Of values in last weeks stock mar
ket presented many reasons for encouragement
ccr the holders Of securities bought at higher
prices. Outside buying in the market was more
marked than had been reported in many
weeks, while the more important speculative
elements exhibited a striking interest on the
.ong side Of the market Trading increased
reaching for the first time in many weeks the
million share mark, with the buying demand
well distributed throughout the llst OF acu'e
issues, while there was also shown an Increased
inquiry for the very low priced issues, as Tor
instance, Chicago Great Western, Colorado ana
Southern, American Locomotive American
Smelling. Chicago and Alton. Erie, Ontario ana
Western. Rock Island and wabash preferred
In the bond market dealings exhibited an eX-
banding tendency. and solid investment buying
mas reported in many OF the first class mort
rage issues. Europe bought American stocks,
md as a consequence strengthened the position
- the American control Of the international
money market.
The advan,e reflected. OF course, urgent cover
ng of shorts Buying for this account was re-
zponsible for the substantial gains in Brooklyn
Rapid Transit. United States Steel preferred
md other issues. The short interest in the local
stock market was not, however, eliminated by
asst weeks advance. Never before in the his
-orv Of the stock market has this interest been
50 large. and there are still left enough bears
Who believe that the short side is better than
he long side for the long pull In 1902 the
highest prices in the stock market were made
.f Seutelnber with an average for the leading
active stocks Of l;4. From that level the de-
.line ran for the same number of stocks 10
s6GS. the low point this year, reduction OF
80 points while at present prices the market
IS about 40 points under the high level OF a year
sgo Following the Bryan panic there was an
upward swing amounting for twenty active
stocks 10 about 30 points and it may therefore
pc seen that in twelve months values declined
more than one-half Of the advance of the few
preceding wears of bull activity. In view Of
shese figures and in view Of the conditions in
he country. as compared with ten years ago,
he theory that the decline has run its course
: Endorsed bv some Of the best minds in the
street. This question is treated by The Wall
street Journal" follows, regarding the last
On years:
Considering the extraordinary advance in
wealth Of The United States during that period,
considering that railroad mileage has not m
creased in anything like the proportion OF populs-
lion. considering that railroad capitalization per
nile has not increased in anything like the ratio
Of increase in surplus earnings, and, finally.
considering that the ratio OF increase III surplus
earnings available for dividends has been at all
times in excess OF the rise in market prices, and
81 the present time shows q larger percentage
market price than at any time since the
boom started. the question may we'll he asked
whether the decline in stocks has not cul-
minated There is al least some evidence in
favor OF affirmative answer 10 that question
The stock market values. Of course. declined in
The recent downward movement beyond the linn
its Of sense and reason. and despite the reac-
1iouar-y tendency ia the COuntry's industries
there is no reason why investors should not
luy solid stocks AT ruling figures. The outlook
presents none Of the indications that made the
9o3 period so disastrous, and outside Of the
COLLAPSE in certain OVerpromOted industrial
combinations and the normal setback in gen
,.ral trade there is nothing on which Wall
street spectators can base operations for the
decline. And these factors have already been
discounted in securities values. While many
r.eople are worrying over the industrial situa-
ion il is interesting TO note that the railroads
are still running and carrying heavy loads Of
merchandise freight. Then IL is also encourag-
lng TO know that the country's export trade is
increasing. and that the United States is now
in a position where ii can draw gold from for
,.ign capitals despite the objections Of foreign
hankers Figures for October show a marked
revival in the country's foreign commerce. the
total amounting in value 10 only 100000 less
han in the record breaking month Of October.
1890. The exports Of manufactures were larger
han those for the corresponding month of any
preceding year, except 1900, and this may also
le said of the ten months ending with October.
in which the exports Of manufactures We're S5S4. -
GSS.J60 larger total than for the correspond
.ng ten months Of any earlier year except 1900.
The country a debtor nation twelve
months ago. Ia the last thirty days sterling ex-
ehange at this centre has dropped TO an alb
normally low level. and already we have i'm
ported or engaged for import upward of SID
100000 gold. II business depression is to develop
al home II is encouraging 10 know that our
International exchange position is stronger than
probably ever before recorded. Money is still
leaving this centre for New Orleans and San
francisco. but at other important cities through
out the country the rate Of domestic exchange
on New-York fayors shipments Of currency to
he East Regarding the monetary situation
IN this country, it is well to study the official
statement Of money in the United States. which
shows an increase in actual circulation, as com
pared with this time last year. OF 500 as 26O
There is now in the United States. exclusive OF
government holdings S2.449 1GS4lS while the
Federal Treasury holds S293. l3l, 1863. the latter
showing a decrease from a year ago of about
S4OO0OOO. Con red with the amount in cir
culation on November ], the outstanding cir
culation now shows an increase OF sol 773 $40
the gain being due 10 gold imports, new gold
from the Nome and Alaskan mines increased
national bank note circulation, and excess Of
government expenditures over receipts. The
amount OF money I'm circulation in this country
~ this time in 1879 was SSlG 266 721 or 81
G32 901 697 less than on December J. 1903. Fig
urcs Of this character attest the wonderful
growth OF the United States in the last quarter
century. and i ought 10 prove 10 all pessimistic
minds that the country is not going to pieces
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