New-York tribune., 1904-09-05
THE WEEK IN WALL STREET.


were large in volume movement of values
that generally tended in the direction Of higher
quotations The demand from the so-called
public was larger than reported in many weeks.
but the bulk OF the trading, however, represented
the operations OF Wall Street speculative pools
that were busily engaged in campaign for
better quotations, Nearly every security on the
list enjoyed the benefit OF the upward wave
notable strength being shown by the hard coal
shares. the Hartman issues, the southwestern
Railroad stocks and United States Steel pre-
ferred Transactions in the last named reached
enormous total. buying representing the ag-
gressive trading of a number of powerful Wall
Street interests, who were convinced that efforts
TO bring about a much higher quotation for this
security would be successful. Notwithstanding
the fact that reports from the iron and steel
trade were not especially encouraging. The re-
duction in the price of steel products far has
not served TO increase buying orders. but men
who well informed regarding the trade be-
Heve that the outlook for better business in
the next few months is encouraging, although
they admit that the situation is extremely mixed
and filed with possibilities that may have an
adverse effect. on earnings. Spectators who are
working for higher prices in the steel stocks con-
tend nat the unfayorable factors in the current
iron and steel business We're discounted a long
time ago by the movements of the steel securi-
discoun-ing revival Of activity in the iron and
steel trade, well in all other lines of bus-
ness. large proportion of the dealings n
United States Steel preferred in the last week
represented covering of shorts. but it said
that despite this covering movement there was
still large outstanding short interest in the
stock
The general short interest in the market.
reflected in the borrowing demand for stocks, is
the smallest that has existed for months,
and this fact encourages the belief in some cir
cles that there is no important resistance to the
upward advancing course Of prices the theory
being that the leading professional interests are
committed to the long side OF speculation. Not
withstanding the reduction In the short interest.
there are many bears in the market who are only
waiting for favorable opportunity make
aggressive attack values. They hoping
for adverse developments, such as damage to
the corn crop by early frost. further demor-
alzation in the iron and steel trade, and a call
on the banks for government deposits at g time
when large shipments Of currency being
made to the interior. In the event OF adverse
developments the market would be in better
position for bear attack than It has been in
many months owing to the fact that the short
interest is small, while large distribution of
stocks has been under way. with the result of
the building up of extensive bull interest,
tncluolng many weekly Tnarglned accounts. Ine
amount Of reckless buying in the last few weeks
has created most unfavorable impression in
conservative circles. There has been much
of this kind Of buying and so much manipulation
IN various issues that commission houses which
interested in the welfare Of their customers
suggesting the wisdom OF keeping out Of the
market at the current level, except In cases
where customers are able to buy securities out
right. In view OF the fact that stocks have ad-
vanced almost continuously for three months
many careful observers believe that an oppor-
tunity to buy securities at cheaper prices will
be presented in the course Of the next few
months, they assert that in the majority of
cases actual investment issues selling for all
they worth, while non-dividend paying is
sues are selling many points above their actual
value.
At present there too many aggressive op-
orators for higher prices in Wall Street to make
bear attacks successful but this situation may
change at any moment, the larger specula-
tive interests connected with the long side Of the
market will not hesitate to change their posi-
ton the minute they believe that conditions
favor decline. And when they turn about the
public. usual viii be buying at top prices
In the bond market speculation similar to that
witnessed in stocks is under way and predic-
tions of much higher prices for mortga ge.issues
are heard in quarters where information is sup
posed to be based the proposed movements
OF large speculative interests. In last weeks
trading transactions in bonds were heavier than
in any week this year. dealings in Thursdays
market amounting to the enormous total of over
SS,0O0.OO0. representing the par value of the is
sues bought and sold. A large proportion of
the trading. however was supplied by the Con-
solidated Tobacco Is, which enjoyed sensational
activity and strength Various rumors accom-
panied the movement in the Tobacco bonds but
far could be learned their strength was
based entirely speculative operations rather
than on the expectation of favorable develop
nents affecting the company. These issues are
secured by the stock of the American and Cont
mental Tobacco companies, which large divi-
dends paid. There was also considerable
activity in the Rock Island As, the United States
Steel sinking fund 5s and the Wabash debenture
companied by reports that the company would
but this idea indorsed by news from
headquarters. The report of the Wabash COM
pany for the last fiscal year was received In the
week. and its figures clearly show why interest
on the debenture A bonds suspended last
June. The company was compelled TO make
large appropriations its property in order TO
handle its business properly and If interest had
been paid on the debenture A bonds there would
have been deficit for the year OF nearly $780,
600
While railroad are looking forward to an
increase IN the volume of traffic in the next
twelve months, current returns OF earnings show
mixed results, with gains and decreases in gross
receipts about evenly divided, but with a larger
proportion of decreases in net. The hard coal
roads make unfaYorable comparisons with n