New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-06-13
THE WEEK IN WALL STREET.

element 10 Increase its operations on the long
side OF the market was recorded. Among the
Lest class Of spectators the tendency appeared
10 favor the accumulation Of good stocks TO
lola for the higher prices. which. IL is believed
viii follow TIE present period of cheap values
in Wall Street. The large amount of idle money
in the country is beginning 10 exert an influence
on the bond market. IN which transactions are
growing heavier. especially among the low
priced Issues such as Consolidated Tobacco As
and the United States Steel sinking fund 5s- Al
though a considerable proportion OF the deal
ings in the Tobacco Is represents purely specula-
tive operations there is, nevertheless. accumu-
lation OF the issue for investment account
brokers reporting a buying demand from SUD
.tantial interests who believe that these bonds
are selling far under their actual worth 1t Is
interesting TO note that the Consolidated To-
bacco Is are quoted under the figure at whleh
the original syndicate took them. while the Sc
cpr.+, on which they are based is OF a most solid
character The stock Junior to these oonos Is
NO. often dealt In but Il commands high pre-
MUM and pays dividend az rate fsr aooNe
that Of the majority OF industrial securities AS
,or the Steel bonds. there are enough buyers left
zvho believa that despite the reaction in the
,ron ana steel trade, the industry is not gong
10 pieces and that the corporation VIII Always
b. able TO pay the interest on Its BONDS AheIe
has been so much pessinlism IN the street IL re-
cent months. owing TO the natural setoacA III
tbe industrial activities OF the nation that II Is
raging 20 record the fact that the specu-
Jative community exhibits more cheerIu4
sentiment There is some ctrcumstshual eNl-
dence that general business In TINS country IL
b.etnn,pg 20 recuperate, as the local banks
are now receiving moderate applications LOT &C
eormodation from the country institutions
Nesse fuolirV received Dy
brokers for high grade investment issues en-
courage the idea that conditions throughout
the country are changing for the better
There IS an excellent demand for municipal
bonds and # was recorded in The week that
the market for this class OF securities was pet
ter than iAhad been IN years An instance o.
the improvement in the municipal bona market
IS presented IN the sale OF the Boston oi2 per
cent issues at a rate which shows gain OF
nearly cent on the dollar as compared with
year ago The new Chicago bonds are seHing
well and II is understood that large block OF
these issues has been purchased by one OF the
leading life insurance companies in this city.
Brokers have no difficulty at all IN disposing OF
first class railway mortgage issues. and the pres
ent extreme ease in the money market and the
willingness of investors to buy this class Of Sc
curity doubtless viii encourage the railroads
10 come into the market for money through the
medium Of a bond issue rather than 10 make
further loans on long time notes. The demand
FOR the standard dividend paving stocks is not
improving at a rapid rate, hut brokers are con-
WINGED that IN the course Of the next few weeks
this class Of Investments viii receive more at
tention both in speculative and investment cir
Giles. II is maintained that stocks such as ST.
Paul and Manhattan ought 10 sell many points
above their prevailing level. while it is insisted
vance, inasnuch as quotations are selling under
intrinsic worth The so-cslled unfavorable
features in the general situation have been more
than measured by the decline that has taken
place fl stock market values IN the last year
and this fact is becoming mole apparent every
DAY IN the inability OF the professional specula-
tive element 10 bring about striking declines IN
quotations. Stocks are I'm strong hands. and the
present holders naturally believe that they have
every reason TO look forward 10 handsome profits
by maintaining tight grip on their possessions
at the present level
Declines IN railroad earnings are not heavy
enough 10 suggest that a radical adverse change
IN the country's industries is under way. IN
deed IN view Of the long period Of railway pros
perity In this country IL is somewhat surprising
that the current reaction is not greater than il
IS. Weekly returns Of earnings do not present
roads that continue 10 show Improvement in
Gross results notable examples Of which for the
fourth week in May the Wabash. Chicago.
indianapolis and Louisville St Louis South
western, Southern Railway and Missouri. Kan
sas and Texas companies. II should be borne IL
mind that earnings compare with a period a
year ago and in the year before that OF enor-
nous receipts and that compared with the
greater number of years current returns are
extremely heavy. AS a matter Of fact they are
larger in most cases than at this time in 1902,
when the income OF the railways wae larger
than ever before recorded. According TO the
reports from the iron and steel trade the con-
sumption OF pig iron shows for the month OF
May decrease. while the current demand
shows a material shrinkage from earlier IN the
year. Dulness in this branch Of the country 3
industries does not foreshadow trade proetra-
lion, but Il doubtless indicates a quiet market
for iron and steel products throughout the sum-
mer months. It viii hardly be wise for specula-
tors 10 assume, however. that the iron trade will
remain in a dormant condition for an extended
period. and at their present prices II would
seem a. II II would be dangerous 10 maintain a
permanent position the short side Of the iron
and steel stocks and the securities OF the allied
trades Much bear talk has been heard regard
ing the railway equipment companies. owing to
the falling off IN the orders Tor new rolling
stock from the railroads. but il is safe to say
that the people VINO operate IN the first class
equipment securities the theory that the rail-
roads Will not resume their purchases Of new
cars ana locomotives FOR long time 10 come
Will not be able 20 secure important profits
The course Of the foreign exchange market
IN the last week doubtless indicated the end 81
the gold export movement for the current year
There may, OF course. be further small ship