New-York tribune., 1904-10-17
THE WEEK IN WALL STREET.

was the feature OF the Wall Street markets 4@o'
week The public was prominent FACTOR i''
the trading, its purchases amounting TO large
sofals for speculative account while Il was also
active IN investment buying in all the attractive
y.rnrsties both in the share and bond depart
nnents. Some observers were unwilling 10 ao-
rni, that the public had et last come into the
market in force, but the mere fact that trans
aosions reached the daily average OF upWaro
n oue million shares proved conclusiVely thaI
speculation was not an entirely protesslohal
affair and that the advance was not cue 70
uanlpulation alone. Markets such as WAN
Street witnessed last week involve activity on
the part OF the public and ii is absurd to close
one's eyes TO the fact that the conditions af-
secting speculation are favorable to enthusiasm
on the part OF commission house operators
The possibility OF loss however, to the smaH
trader whose optimism is greater than his finan-
cial resources is promising at present as the
market IS approaching the point where violent
reactions may be expected; but people VINO nave
large margins or own stocks outright need have
no fear OF sudden and sharp declines. for de-
spite the fact that prices are selling many points
above the low level OF the year, and IN many
cases az a range that fully measures the IN
trlnsio valus of tho security the general ten
dency VIII, Il is believed. continue to he IN the
direction OF higher quotations. Speculative
movements always run to extremes, and there
&c no reason TO suppose that the current bull
market VIII differ IN this respect from the Dun
markets of the past. The bear campaign OF
1903 carried prices TO a level far under that
warranted By actual conditions ana the recoV-
cry that IS now under way will so 10 the oppo-
site extreme So great was the advance last
week thai strong opening to-day may be fol-
lowed by a selling movement large enough 10
cause a sharp setback.
cha a
zapidly becoming more encouraging; uncertai1-
sies that developed few months ago regarding
the future OF business have practically been
eliminated from the situation; railroad earnings
nre increasing bank clearings are expanding.
President Roosevelts election is assured. for
siRners are buying our stocks, domestic prod
nets and manufactures, and money is easy ana
sn abundance throughout the country. Bearing
these factors in mind it will readily be seen why
there is so much bullishness in Wall street ana
why there is an increasing disposition on the
mart OF outsiders to try their luck in the specu-
iative markets. With each advance. however.
st may be wise for spectators to take their
profits or strengthen their margins.
Railroad earnings for the month OF September
show for roads reporting an increase OF over
r per cent as compared with the corresponding
period year ago, while for the first week IN Oc-
tober the gain amounts TO more than o per cent
IN
earnings for the month OF August show for
eighty-eight companies an increase in net OF
81 .9966Ol, reducing the loss for the first two
months of the fiscal year to SS0.74l. This is a
most favorable exhibit, but from now on the
reports both in GROSS and net, ought TO make
even better comparisons with last year. as traf-
6c reoeipts will feel The effect OF the revival OF
activity IN the iron ana steel trade and the
marketing of this years large haTvests. The
advance in the iron and steel shares and the IN
creased activity in all departments OF the in
dustrial list We're among the striking features
Of last weeks speculation, and TO people who
had studied the business situation these move
.nents were the reflection Of natural develop
Ynents and not an indication OF speculative
manipulation. The industrial shares Of merit
are relatively cheaper than the greater number
Of railroad issues, ana it is more than likely
that further marked improvement will be re-
corded in this department Of the market
1t is confidently believed that United States
Steel preferred viii cross the price Of the sink
sng fund bonds, ami if it does shape its course
in this direction it viii merely prove that in
vestors are firm believers in the theory that the
big steel company always viii be able TO main
tain dividends at the rale OF per cent on this
issue The increased activity in steel circles
and the improving outlook for a year Of sub
stantial railroad progress doubtless will be fur
ther reflected in the railway equipment shares.
which in last weeks market gave signs OF spec
ulative life. Railroad companies so conf
dent that year Of big earnings is ahead that
they are again coming into the market with
their bonds. while the public is so confident
that the situation is sound that il is willing 10
buy all the bonds the transportation companies
may care 10 put out And among the buyers
OF our railroad bonds foreign capitalists
who are active bidders for all bond issues Of
solid American railroads. Three railway com
panies sold bonds last week. and it may be
stated on authority that more issues Will
follow. and that the offerings in the next six
months viii aggregate many millions of dol
lars The roads are issuing these bonds chiefly
for Improvement purposes, and the increase in
interest charges VIII be Offset by the gain in
earnings that viii come from the expenditures
on extensions and such betterments that will
tend 10 increase traffic receipts.
There is a vast fund Of capital in this coun-
try available for investment purposes. The sup
ply OF money is increasing at a rapid rate. this
fact alone supplying sufficient reason for the
upward trend Of securities. AS far as the local
money market is concerned, there is no reason 10
look forward 10 temporary stringency.
for despite the fact that the demand for funds
for crop moving purposes is heavy. while ex-
pansion in business win make larger calls on
the money market necessary, conditions in the
foreign exchange market insure gold imports
whenever local needs require assistance
Abroad the discount market is hrIner, but this
fact will not interfere with shipments OF gold
TO this side If New-York wants the metal
Foreign trace conditions are running heavily in
favor OF this country, reflection Of which is
seen IN the report OF foreign commerce for Sep