New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-11-21
THE WEEK IN WALL STREET.

supplied an important proportion Of the daily
transactions Certain observers continue 10 in
sist the theory that the public is not in the
market and that the enormous trading is moth
ing more than a reflection OF acute manipula-
tion. but the evidence presented by commission
house business plainly shows that outsiders are
actively en- gagged in the securities market. 1t is
true that the small public trader is not engaged
in speculation TO any great extent, dealings Tor
commission house account representing buying
Cor public interests which have substantial hnan-
cisl resources and which able TO swing
stocks IN !. 600 share lots and above. The in
crease in individual wealth in this country is
reflected in current stock market operations as
81 almost every brokerage house in the Street
there are many customers vino are now trading
81 lines Of securities OF from 1000 10 5000
shares. compared with their 100 share lot trans
actions Of several years ago. Commission houses
are more particular nowadays over margins.
and the small traders who believe that legiti-
mate houses will operate for them on shoe
string" account will find themselves disappoint-
ed as brokers have learned from past expert
ences that in big bull markets big reactions sud
denly develop which generally wipe out the
small nargined trader and quite frequently
leave him ii debt to his broker. And this debt
Is seldom Hquidated. In a market such as pre-
walls IN Wall Street at present especially after
q long period Of almost unbroken advances, the
necessity Of large margins ought to be apparent
20 every trader. The fact that current operators
in stocks ere backed by large bank accounts is
one Of the strong points in the present specula-
tive situation, inasmuch as il lessons the press
ure on commission houses in the loan market and
supplies a reserve fund for purchases on all de-
Clines.
Although bank reserves reflected in the
Clearing House statement are low. the supply or
money in New-YoTk Is large, the weekly state
r1ent failing TO reflect conditions they actually
exist. There time when the weekly state
Illent Of the associated banks was considered an
in<aiIible guide to conditions in the money mar
ket but that period has passed. owing to the
development Of new factors in the money situa-
ton such as the operations of the trust COM
pan;es and Of the out of town banks. the trans
actions OF which do not appear IN the Clearing
House figures. Money is now affected by many
ard varied Influences and. bearing this fact in
mind 1t is not safe 10 predict the future OF the
money market the basis Of the showing of the
Clearing House institutions. According to the
belief. however. of the best informed bankers in
the Street money will work higher level
before the end of the year. but disturbance is
not looked for. With increasing activity in the
business world the demand for funds will become
more urgent. while preparations at the end OF
next month for the January disbursements
doubtless viii be an influence IN causing tenn
porary hardening OF loan quotations More gold
may be exported in the course Of the next few
weeks but shipments will not cause collapse
fn the American monetary situation, as the-coun-
Try is well supplied with gold, while its holdings
are constantly being added to from gold
production. In connection with the international
exchange situation il is interesting TO note that
tn the month OF October exports Of merchandise
from this country were heavier than in any pre-
ceding month this year and larger than in any
October on record, with the exception OF October,
1900. when the value OF shipments was slightly
81 excess Of the month under review. The most
significant feature of the statement Of foreign
trade was the gain in general exports, despite
the large falling of in breadstuffs. indication
that the movement OF manufactures TO foreign
lands was extremely heavy. 1t is important to
bear IN mind that the United States is rapidly
finding new markets the world over for its
UfactUred products, and that il no longer is
forced 70 depend on its exports of grain and cot
ton 10 give il large excess of exports over i'm
ports.
Imports Of merchandise IN October elso showed
q gain over the same month a year ago. while
they were larger than in any preceding month
this year, amounting in value 10 over $4,000
coo. The actual value, however. of our imports.
doubtless. as usual, was larger than the official
figures published by the Department of Com
nnerce and Labor, owing TO the system of under
trade. The subject of undervaluations must be
taken into account in figuring on the balance
OF trade as must also the operations in AIneri-
can securities for foreign account, including
the money dlsbursed by American corporations
TO foreign holders of their stocks and bonds For
the ten months ended October the excess of ex-
ports imports. given by the govern
ments figures. amounted in value TO $50, 2GO-
o4S. but against this must be placed the under
x-eIrT
present foreign exchange rates this centre
ere strong, quotations being influenced by the
holding back of cotton and by the demand
abroad for accommodation. It is understood
that heavy losses have been suffered by specu-
lators in foreign exchange who several months
ago operated in the exchange market the
expectation OF lower rates this fall. Ordinarily
exchange quotations rule at low level In the
autumn. but this season has been an exception.
as exceptional factors have governed the mar
ket- Financing Of foreign government loans and
OF the requirements Of American railroads VIII
not create disturbance IN money. as the greater
part Of the funds subscribed to new bond issues
Will find their way into the channels of trade
in the United States. the amount of the Japan
csc loan, for instance, representing money which
Japan already and Will owe in the future
70 American merchants and manufacturers.
which that the entire amount will re-
main IN this country.
The most interesting event of the week in
financial circles was the announcement that
Speyer & Co. would finance the S25o00OOO bond
sale Of the Rock Island company and that
James Speyer would enter the directorate of the
railroad member OF its finance committee
The fact that this substantial banking house