New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-11-14
THE WEEK IN WALL STREET.

the spring OF 1901 when a market of 2OOoooo
shares and above common Conloent IN
the belief that the Republican ticket would be
successful in Tuesdays election. Wall Street
went into Mondays market with a supply OF
bull enthusiasm that carried values well above
the closing Of the preceding week. while in
Wednesdays market the irresistible wave OF
speculative and investment ouying swept all
opposition to higher quotations aside transac-
tons amounting 10 2 325 900 shares the heaviest
days dealings since the Northern Pacific panic
of May 8, 1901. The extraordinary victory OF
President Roosevelt insuring a continuance OF
the present policies thas have made the coun-
try prosperous, naturally encouraged an
active outside demand for securities, and, de-
spite enormous realizing sales. prices moved
higher establishing in the greater number of
issues the best quotations recorded to that time
So the current year.
While in the rest of the week there
tendency among conservative operators 10 light
en- their speculative holdings values held re-
markedly firm. with sensational Improvement
in e number Of issues, notably Pacific Mail.
which in Fridays market advanced points.
following e gain OF points in the preceding
day. The upward movement In this issue was
due 10 the Lawson offer to buy all the minority
stocks at 20. Inasmuch Mr.. Lawson does not
bind himself TO take any Of the stock unless he
can secure every minority share. it is extremely
doubtful that any minority holder will receive
the big price offered by the Boston banker Ac-
cording to Wall Streets way OF thinking the
proposition 10 buy the stock at 30 was merely
part of a speculative campaign in the issue. On
its merits however, Pacific Mail doubtless
eventually viii rule at just as high a price as
Mr.. Lawson now offers for the minority hold
ings.
Discussion in Wall Street circles over the cues
ton OF market values and the intrinsic value
OF securities is becoming more active, owing to
the enormous appreciation which has taken
place in the prices of securities appreciation
which some people believe fully measures the
Improvement that has already occurred in bust
ness conditions or which may develop in the
near future. On the other hand, the theory that
market values have not yet fully discounted
the favorable factors IN the situation is enter
tanned by many careful observers It is inter
esting to note that the recovery in the most
active stocks since the low prices of the year
amounts 10 s.. 49,, SIS. 375 in market value the
greatest appreciation being shown by the United
States Steel issues, the preferreds current valu-
alton being S119354,o45 greater than it was last
81 ring. The common shows a gain OF over
S90.o00.oo0. AS far as the common stock is con-
ceTned, there should be no dispute over the ques-
ton OF its dearness at present quotations. There
is no prospect Of dividends this issue. either
this year. next year or the year after. and as
consequence people who are buying the issue on
expectation that it will return to the divi-
dend column viii simply tie up their money in
an improbable venture The preferred occupies
q vastly different position. having the surety of
steady per cent dividends and the practical
certainty Of reaching a better price Iron and
steel trade conditions present wonderful i'm
provernent, but the United States Steel Corpora
ton is now too ably handled to admit Of the ex-
pectation that dividends will be distributed
the common shares. The consumption of pig
iron is shown by the reduction in the surplus
stores, which have declined at a rate which sug-
gests an extremely small surplus stock Of the
product at the end Of the year. Better prices
for iron and steel products expected, and
despite reports from Pittsburg that the quota
tions for steel rails Will be reduced there is no
reason, according to local interests who
well informed regarding the iron Industry. to be-
Iieve that there will be any cut from the sched-
uled rate Of SIS a ton.
For speculative reasons declines may be re-
corded in the stock market in the course of the
next two months, but unless there should be
disturbance in the money market or unfavora
bic developments in the business world the
bear element VIII find it a difficult matter to
cure ammunition for a legitimate campaign for
lower prices Wild bull speculation which in
wolves reckless operations on the part Of traders
OF small financial resources will, Of course,
cause decentralization in the market at times,
and the fact that many stocks are now held
by weak spectators suggests TO many minds
the wisdom of exercising great caution in the
current dealings Barring sharp declines which
accompany active bull markets. the general
course Of prices ought gradually to carry values
for many issues TO higher level This is par
ticuiarly true of the solid dividend paying is
sues. AS far the non-dividend payers are
more than they are worth. Recent develop
rnents have all been IN line with the hopes of
optimistic people. and even the possibility Of
higher rates for money fails TO shake the
hdence Of bull Spectators in their belief that
higher quotations VIII prevail in the next six
weeks
II may be just we'll TO pay some attention
TO the position Of the money market and fac
tors which are likely TO influence rates IN the
near future. For instance large number Of
corporate financing plans are under way. which
VIII call for large gums Of money. while the re-
qutrenaents IN the money market incident to the
new japanese loan and the Mexican government
loan should not be lost sight Of. In addition, the
local money market soon viii be called on to
turn over 10 the Treasury e proportion OF gov
eminent deposits held in this city, while inter
national exchange conditions may make further
gold exports necessary. Owing to the skill Of
New-York bankers In handling large fiscal op-
erations. Il is not likely that disturbance will
develop in the money market. although It is
reasonable to assume that rates for loans will
move 10 higher level.
The reserve Of the local banks above legal
QuireInents shown IN Saturdays bank state
Inent now stands ct IS, S94, $50 which compares
with Sc, 13s 425 al this time year ago and SIS
32s.359 in 1902. While loans amount TO the