New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-11-14
HONEY AND BUSINESS.

Events in the stock market since Election Dav
have exceeded the most sanguine expectations
particularly from the point OF view of the
brokers. who welcome the return OF the general
pubic after an absence Of over two years Sales
on Wednesday were the largest since May g.
1901, exactly forty-two months before and
there was not the special influence of contest
for control TO stimulate business. The sixty
most active railway stocks showed an average
gain OF exactly 81 for the day, and subsequent
gains brought the market to the highest point
of the year or within S13 of the high water
mark esta blshed In September 1902 Although
President Roosevelt's election was generally ex-
pected, the vote SO unprecedented that it
developed an avalanche of enthusiasm and long
before this market open for business thou
sands of shares Of American railway stocks had
been purchased In London by cable Subse-
quently there was much profit taking but the
public had developed such an appetite for stocks
that offerings were absorbed without producing
any severe reaction. The future of the market
will depend upon the buying power of the peo-
pie and the extent to which the rise has been
due TO speculative purchases for quick turn.
Shrinking reserves of the associated banks
nave scarcely more than hardened the tone OF
the money market, call money being offered at
~ per cent, and time accommodations costing
only 3ia per cent for six months European
nnaHClal conditions nave improved to such
extent that there is less urgency to obtain gold
from NewYork, the only exports of the week
going to Cuba. Transfers to the interior are
gradually decreasing. while there has appeared
fair movement of funds In this direction Bank.
ers are generally of the opinion that rates will
advance when the government withdraws some
of its deposits Of public funds from the banks
particularly II the stock market continues strong
and active. There is no immediate prospect of
federal needs, because the daily operations of
the Treasury show receipts about balancing ex-
penditures A new factor will be introduced into
the financial situation as commercial re-
quirements expand, they are certain to do in
the near future Business will improve with the
growth of confidence and money will be needed
TO carry out plans postponed some time ago. but
by no means abandoned. Rates Of foreign ex-
change are still remarkably high for the season
Trade reports are full of encouragement, the
chief drawback being the unseasonably mild
weather. Dealers are more confident and less
conservative, but 1t is necessary to have good
retail distribution in order to get back to a
thoroughly normal basis. Sentiment has i'm
proved 30 largely that good progress is almost
assured. and it is possible to discern only one
threatening element. That is the possibility of
a repetition OF the events that occurred a little
over two years ago. At that time the upward
tendency of the stock market tempted many to
withdraw funds from legitimate business that
they might seek the quicker profits of specula-
ton. Results were disastrous Some lost all
the money put up as margins, and others who
were able TO hold to their stocks had so
much less capital for their commercial pursuits
1t is to be hoped that these events are too fresh
in memory to permit duplication OF the de-
bauch Of 1902. Among the gratifying occur
rences of the last week, in addition to results at
the polls. were advances OF wages at Southern
biturninous coal mines and the settlement of
several other labor difficulties while the Fall
River mills decided TO reopen, although no con-
cessions have been made by either side
Cotton developed considerable strength on the
prospect of increased consumption. but every up
ward tendency checked buying by spinners, and
spot prices hold close to 10 cents. Daily exports
longer show large gains over last years
movement, and receipts ar Southern ports also
decrease although ii is stated that the move
ment to market is reduced chiefly by the ten
dency 10 wait for better prices AS a rule the
planters are II a strong position to hold back
the crop. and it is doubtful whether there is anv
reason for reducing estimates OF the total WELD
because of this development Wheat continues
In a very strong statistical position, receints
being limited. despite the fact that large shin
ments are coming to interior mills from the Pa
cihc Coast. On the other hand. there is a de-
cided falling on In the output OF flour evidently
due TO the fact that dealers supplied their re-
auirements earlier in the season. when II be-