New-York tribune., 1903-01-26
THE FINANCIAL MARKETS.
WEEK OF LIGHT DE4LINGS IN LOCAL SECURITIES
oney at Relatively Lo7o LeJe Whe Sterling Erchonge
Ffr7n-RaiLroad Earnings Heavy
THE DAYS OPERATIONS IN STOCKS

tfnerations in last weeks securities marker
ere made up in great part of the dealings OF
Professional traders. Comm ission houses hao
,esv orders for the account Of the public I'M
tortant speculative interests were not active
factors I'm the course of market movements
0 hiIe transactions Of the board room element
we're lighter than in any week in seNeta'
,,onths There was = bsolute lack OF sTecuia-
tive enthusiasm. As a result OF this dulness
prices were naturally irregular, fluctuations rep
resentiug little more than short sales and sub
sequent covering 10y the professional element
Traders were not especially bearish. but in the
absence Of an outside buying demand they made
r-eq1Jeut excursions on the short side Of the
market. Declines brought about by this kind OF
selling were not heavy, being confined. as rule
ia fractions
The warIilze attitude Of Gernany's naval force
n Venezuelan waters doubtless was a factor in
-heckinE trading in the last half Of the week
Wall Street. however was not alarmed over the
attack on the Venezuelan fort at the entrance OF
lake Maracaibo although It was extremely
severe in its opinion Of the bellicose Germans
The United States has adopted such a conserva-
1--we course in its treatment of the Venezuela
-irr,a1iou that the banking community is conf
cont thai the country VIII not become involved
N difficulties with foreign powers, despite Ger
77any's evident breach of faith in bombardins
Fort San Carlos pending the adjustment of the
.Iair7s against Venezuela by civil tribunal
Further aggressive steps by Germany would
7a1ibtless exert an adverse effect on speculative
-olltrn,llt but as stocks are in strong hands
re ought not TO he important declines in
.aIres. Outside of the Venezuelan situation
here are no unfavorable speculative factors,
and nothing in the business OF money situation
hat may be twisted into bear arguments In
7aed. the position of money and trade is
stron-lv in favor Of the bulls. Railroad earn
.rps continue to show gains this time a
rear ago. bank clearings are large and exports
sre growing.
Money is flowing into New York in large
amounts The possibility Of gold exports
troubles no one as there is enough money at
his centre 10 supply possible foreign demand
and home requirements without causing an up
7eaval in the local market. Expanding exports
~ grain and general merchandise should pre-
.ert a large outward movement of gold, while
hey may result in imports of the precious metal
rom Europe For brief period last week Wall
street traders were troubled over the money
market owing 10 the dispatch from Washington
stating that national banks which substituted
her than government bonds TO secure govern
71eut deposits last November would be COM
9elled to change the security 10 government
bonds before August. This measure involves
s2NG000O0 Of bonds, and as the banks are al
owed six months TO substitute government
aonds for deposits now secured by bonds other
han governments. the money market will be in
"a danger. The banks may surrender their de
aosits they may reduce their circulation, using
7e bonds deposited TO secure circulation 10
secure government deposits, or they may buy
,,nds H. the open market. 1t is likely that the
asst named proposition viii he adopted, as even
ar the present price of government bonds there
S. = profit in circulation, and the banks do not
are TO retire circulation outstanding. If
fle banks decide to retire circulation not more
han S3.0N00o0 can be retired in any one
month.
The franchise tax decision failed TO stimulate
rading in the shares of the local transportation
ard gas companies. while the general list was
Unaffected by the various favorable develop
uonts Of The week. Few people cared TO sell
stocks despite the efforts Of traders to provoke
tquidation. holders appearing well satisfied with
heir possessions and confident Of future higher
rrices. There was fair demand for Atchison,
=. Paul Norfolk and Western ST. Louis and
san Francisco Reading. Rock Island, Erie and
he Could shares. In the industrial list there
Gas a moderate demand for Sugar Refining.
United States Steel and American Car and
Foundry issues. Car and Foundry preferred
Nas taken by investors This issue Will doubt
actual worth is steadily increasing. It is Of
course more attractive than the common its
position being equivalent TO that Of bond.
Missouri Pacific and all the Gould shares are
n the hands Of careful operators. The Street
s bullish these issues. especially Missouri
Pacific. on account of its cheapness compared to
other 2 per cent issues. and owing the pros
rect Of record breaking earnings in the current
year There are many good reasons for cur
gent bull sentiment on the Wabash issues. They
'epresent a growing property property that
Is steadily improving in physical efficiency,
steadily becoming a more important factor in
the Western railroad situation. and steadily
reaching a position factor in the Eastern
Iailroad situation. The big crops viii help
Wabash this year while its new connections
The West Virginia Central and the Western
Maryland. viii also help TO swell the company's
earnings.