New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-02-29
THE WEEK IN WALL STREET.


,eoyrtties are favorable to an upward movement
IN prices. but Wall Street traders are. as q RUE,
bearlsh basing their position on the reIusa1 "a
the public to take active part in specuia'ioi
and on the possibility Of adverse developments
affecting the peace OF the world. The course Oh
the war IN the Far East does not warrant INC
expectation that other nations VIII become m
viewed and the more one studies the SITUATION
the more one ought 20 become convinced that
the very consideration OF the magnitude OF the
loss TO the financial and commercial interests OF
the world from a worldwide war viii serve 10
insure peace among the powers Money plays
big part In A modern war. and for this reasoh
the nnanciers are important factors. both IN inc
declaration OF war and in the settlement OF war
Il is true that the money interests were uhaOis
10 stop japan and Russia from beginning nos
tni;ies. but what VIII happen when ooth oouH-
tries have used up all their available cash II the
ts-,,-s-s ste, IN and CRY halt2' II Russia con-
tinues to fight TO the point where II weakens It's
credit what VIII the holders Of her bonds 90
about itY Even Japan cannot continue the
struggle indefinitely. for its resources VIII
also shrink In conservative circles "here
the financial end OF war is considered rather
than the news OF bombardng fleets and merch-
ing land forces. the opinion IS growing tha' 'hs
troubles IN the Far East vii be settled oel0Ee
the money loss has been heavy and that Rus-
reduce Japan 10 the grade Of second rate
mower Russia is rot IN a position 10 carry on a
long war. and it might require only little
PRESSURE from its bondholders TO convince the
country that fghtlng must cease.
The traders fear OF widespread disturbance
among nations does very well for a passing AZ
guneut on the bear side OF the stock market but
4 IS not likely TO brighten investors into liqulae-
ton 80 Jar there has been no liquidation OF
this character. while there has been no im2or-
tsrt selling fo- the account Of the larger specu-
iative holders Of securities. The latter class OF
one-ators are doing nothing 20 bring about bull
market al the moment. but they are buyers on
ALI declines. People who have money and can
afford 10 hold their stocks FOR a long period
ought 20 find purchases AZ current prices most
rroa-,b,e Conditions affecting the business
situation n this country are sound. and while
there may he q lighter volume of trade n the
year as compared with the preceding twelve
months. there Is no reason to look forward
20 the acute depression that some OF the
pessir.is-icaIly inclined predict In certain parts
OF the country railroad earnings are falling on
from the big records Of 1903. but q should be
borne Il. mind that comparisons are made Win
a period when railway traffic broke all past hg-
ures for the volume Of freight carried. And 1t
should also be borne in mind that in the last two
months the railroads have been forced to con-
tend with the worst weather IN years. In the
South and Southwest earnings continue TO show
increases as compared with last year. as FOR IN
stance Southern Railway, which for the third
wee. n February presents gain IN gross re-
turns OF SIS 40: Louisville and Nashville. a
gain Of 500 30. and St Louis Southwestern, a
gain Of So63-9. Net returns for the month OF
January show many unfavorable results notably
those OF the AtcfisoR. the Reading and the
Baltimore and ohio. There has been some talk
that the decline IN the earnings OF the Erie
might bring about reduction IN the dividend on
the oo1upGny's first preferred shares which row
pay 4 per cent This idea apparently IS based on
the theory that the Erie earnings VIII never be
large again. This. q course is absurd. as the
Erie is promising property running through a
promising part OF the country.
Money market rates at this centre remain
easy. and there Is no indication that higher
quotations wiz develop for some time 20 come
The local banks continue TO receive more money
from the interior than they ship-something
rather unusual for this period OF the year. The
recent liquidation in the cotton market In New
Orleans has released a large amount OF money.
which is returning 10 this centre. while many Of
the interior banks having government deposits
are sending currency to the banks IN this city IN
expectation Of an immediate call for the Pan
anna Canal payment. TIE call. however, has
been postponed. owing 70 litigation IN Paris
against the Panama Canal Company. factor
which was effective in weakening the foreign
exchange market at the close Of the week. The
Supply Of commercial bills Is small. and a.
though the demand Is light the supply hand
is lighter. requirements being met by the
cuuulatioas Of bankers bills. Exports are de-
creasIrg. owing TO the fact that the cotton crop
has tn great part been marketed. while the high
prices Tor grain have reduced shipments OF
wheat and corn 70 a minimum. despite the fact
that freight rates are from 10 20 20 per cent
lower than they were AZ this time last year. In
the commercial paper market business IS quiet,
with the demand chiefly local Time money
rates rule from 70 AZ per cent. while call
loans average less than . per cent There has
been no change 81 the official discount rates by
amy OF the European banks. and open market
quotations show no important fluctuations.
The failures in London. Paris and Berlin IN the
week caused no great amount Of liquidation Of
foreign held American securities. Fortunately
Europe has Few OF our securities 20 SELL and the
idea that the disturbance IN the foreign markets
would cause trouble at this centre was pretty
thoroughly tested IN the week The local mar
zet has withstood the shocks Of many adverse
domestic and foreign developments IN a manner
that ought 10 Impress owners OF American stocks
and bonds that financial conditions in this coun-
try are on an extremely safe and substantial
foundation. The fact that the public shows no
desire TO speculate IS not an indication that the
country Is going to the dogs. There is little TO
be said Of the general course Of the stock mar
1et In the week. trading being confined 10 the
operations O. the professional element with
prices heavy IN the greater part OF the five days
Of business. On the declines there was a quiet
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