New-York tribune., 1904-09-12
THE WEEK IN WALL STREET.

Ife secouat OF financial interests that have been
carrying stocks in expection of being able 70
liquidste their holdings at profit In certain
quarters in Wall Street IL was not believed tnaI
the bun speculation would run beyond the clos
ing week in August, but the course of prices in
TIE last five days caused revision of market
idess regarding the probable duration of the cur
rent upward movement AT the close of the
week some careful observers. however, thought
that the market had reached the point which
suggested the culrnination of the upward wave.
but :n purely speculative circles enthusiastic
predictions OF further advances were made.
There certainly indications that the bull
leaders intended 70 retire from the market or
change their position 10 the bear side. despite
the fact that On the advance large amount of
stock passed from the hands of capitalists to the
accounts ot commission house margin traders.
Dealings we're heavier in the week than reported
at any preceding time this year. and while there
were traces Of manipulation. the extent OF the
business transacted was too great TO warrant the
assumption that the movement was without the
support o. genuine buying. Doubtless there was
a certain amount OF the prohibited matched or
Ger" business but the bulk OF the dealings rep
resented q legitimate bull speculation.
In many securities-indeed. in the greater
number of stocks listed-the best prices OF the
year were recorded. the quotation level showing
az last weeks high prices OF II per cent, Union
Pacific sold so points above its low level OF the
year, Southern Pacific IL points. Reading %
points. Atchison is points, Louisville and Nash
vile % points Amalgsmated Copper 16 points,
Consolidated Gas II points and United States
Steel preferred % points. These shares furnish
striking examples OF the expansion that has
been under way in the stock market IN the sum-
ner months. expansion which. according to
ihe views OF some market observers. adequately
measures the actual investment value of secur-
sites and discounts continued industrial pros
perity. With money al Its present cheap price.
however il readily may he seen that the cost o:
speculative operations is Insignificant. and a
consequence stock market bulls are confident of
the strength OF their position. notwith-
standing the fact that q good sized reac-
ton is overdue. IT is estimated that money
VIII remain extremely easy for several weeks
TO come and that, at the rate Of de-
crease suffered by bank reserves In the last
two weeks. there is enough money on hand to
maintain lending quotations at the present low
level until October. at least. The bear element
has lost macy of it's members. owing to the con-
tinued strength in the market. but there is still
q certain number OF traders who believe that a
position on the short side at this level VIII prove
profitable
Powerful bull pools. made up of men with al
most unlimited resources, nave been working IN
The stock market for the last month. and it may
not be unreasonable to believe that their re-
marksble success on the long side of specula-
tior VIII encourage them 10 change their posi-
ton 10 the bear side just as soon as they are
able 20 dispose Of their holdings without caus-
ing slump In values. Distribution of stock for
pool account was reported last week, evidence
tending TO show that operations of this char
acter were being conducted under cover of the
strength IN the general market. 1t remains to
be seen whether or not sales Of this character
mark the end OF the bull campaign or merely
figure as an incident Of the upward movement
These operators have worked in about every ac-
tive issue, meeting with no resistance and max
ing profits that have increased their strength to
a material degree. Minor pools have been
formed, and the outsider has at last been in
duced TO take an interest IN the market. fac
tor which suggests to many minds the proba-
biiity Of a change by the larger speculative in
terests in their market position. In addition to
the purely speculative buying, there was an ex-
cellest demand throughout the week for high
grade Investment issues for the account Of con-
servative holders Of Idle money. Such stocks as
Delaware and Hudson. Delaware Lackawanna
and Western and Manhattan figured in opera
tions OF this character. while in the bond de-
partment The inquiry for first class issues ap-
peared 10 be heavier than the supply. Invest
inent buying of Manhattan was based on the
great intrinsic worth of the stock reflected in
the annual report Of the elevated system, which
showed heavy increase in earnings. both in
gross and net and d large surplus after the pay
fnent Of dividends. which included per cent on
Manhattan and per cent recently declared on
the stock Of the Interborough Company.
While efforts were made in the week to inject
a crop scare into the speculative situation, the
stock market failed TO respond either TO the corn
damage reports from Chicago or the weekly
government crop report. the latter being less
favorable than expected. severe frost this
month doubtless would cause serious injury to
the corn crop, but It would hardly reduce the
yield to a point that would cause shortage OF
important proportions. General conditions af-
fecting the investment value OF securities con-
tinue favorable. The reduction Ia the prices Of
steel products VIII, il is expected, stimulate a
better demand while the agreement between the
United States Steel Corporation and independent
concerns viii serve 10 create stability in quota
tons and inspire greater confidence on the part
OF the producer and consumer. A factor Of 10
small Importance in the weeks upward move
n1ent was the sweeping Republican victory IN
The Vermont State elections Wall Street taking
the view that the results in that State fore
shadowed an increase in the Republican senti-
ineaf throughout the country and success for
the Republican national ticket in November.
Wall street is not IN favor Of change in the
national administration. and despite the talk of
opposition an financial circles 10 President Roose-
Nelt & IS safe to predict that the majority of
votes from the Stock Exchange district Nill be
cast for the Republican party.
Railroad earnings received in the week for the
last week in august and for The month made. rs
q rule, most favorable comparisons with the cor
responding periods last year. while they pre-