New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-01-24
Financial.
The Financial World.

plain a week ago; that it had an upward -,
ency was also plain Since then. this my
tendency has been considerably emphasizes IT.
ing prices with enlarged volume Of b,si,.
being the features OF the week. The novarro-.
was slow until Thursday. when the mar,s, =.
gan to get steam on; Friday there Vas
full head OF il. and over a million sbarss
done. Yesterday there was some hesitatio,
with recession on profit taking; but the e.
was strong, and the chances seem poo5 -
the forward movement will he continued On,
house is conspicuously to the front in the +r,s
ing; but it is we'll known that it represents OIL
interests than its own. Rumors were c1rr-...
that Thursdays clearing house sheet Of mi,
firm showed a total of over 10000 shares,
almost incredible figure for one firm.
The strong bull argument is the growing 49,.
Of money, with the high prices for wheat ava
cotton and undimInished demand for bo.t
Money is flowing back from the interior. as .c,,,
tomary at this time OF year; and the colossal
figures Of yesterdays bank statement made the
Street open its eyes in astonishment Incraas.
in deposits. IL millions: increase in loans IN
millions; increase in cash. II millions We ava
not accustomed to see one weeks bank sta+.-
ment changed by items rising 10 such size a,
that. But the proportions remain about as IN
previous years. Deposits are now about o. mill
ions over loans; they were the same last wear
The surplus reserve is - millions. il was. triFa
over this last year. The proportion also hold,
good OF nearly so. in respect TO the amount 70
ceived from the interior as compared with tia
amount sent out for the crop mOvemenJ-that is
between August and December. There vs-.
something over SO millions sent out I'm these
months: two-thirds have been recovered in tba
first three weeks OF January. For the moving
OF the previous crop. 3 millions were sent OUT:
a Out three-fO11rtos we're raco-a-.9 ;r
same period OF last January. Judging from pre-
vious records the net gain from the interior for
the next four weeks should be about the sauna
as for the past three weeks
This return 1Ow Of money. combined with an
improving tone in the iron market and general
trade has had a most favorable effect on the
bond market. Some OF the great banking houses
have enjoyed the gratifying experience of having
a tolerably clean sweep made OF their shelves
goods which have been lying there a year having
all been swept on One Of these houses has sold
more bonds in the past ten days than I'm either
six months OF last year. II is remarkable how
radically the bond market changes when il
changes at all For months and months bonds
pile up waiting for buyers. and the market seems
hopeessly glutted- Finally demand springs into
life again. and the waiting piles disappear i'm a
few weeks.
Undoubtedly strong contributing cause -
this improvement in the bond market Is that In
vestors see something more than temporary
ease in money. They see the western and south
ern sections Of the country sustained by steady
demand for their products at highest prices. and
they measure more or less unconsciousIy tho
effect or this in extricating the East from tho
consested condition into which its industries got
clogged up. There was as large return flow oF
money, or larger. at this time last year: bur 81.
did little good 10 the bond market The investo-
scented danger IN the air-and he had not long
10 wait before the collapse OF an inflated stocIa
market told him where the danger was.
II is now advanced as bull argument thai.
a year ago the Street was specializing in stock b
on per cent basis with money at from IA
10 80 per cent; while now money is per cent
and stocks from . 10 S per cent CondA
tons are reversed. Readers OF this column ula4
recall how insistentIy II urged last year that
stock speculation and the monetary conditions
were out OF joint: that It paid better to lend
money at the prevailing rates than % buy
stocks: that either money or stocks must come
down. and there appeared but small chance for
money 20 make the move So far as these con-
ditiOns are reversed now.-in so far as they are
the argument Is valid for buying stocks. And
II certainly appears az this time that money
Will get cheaper. unless our great corporations
get too greedy IN their borrowings. During the
offered at "A per cent on all industriaIs- on
mixed collateral. the t figure has been broken.
In the case where the Offering Of these Ioaus
came under personal observation. they were re-
fused, for the sufficient reason that no moro
money was needed business was too small. in
other words. the amount Of securities carried
was at bed rock Probably other commission
houses are in the same condition.
II business expands. by the public coming into
the market such loans viii not be refused. Tho
money will be needed-there viii he use for it,
But the public is not in the market yet Com
mission house business is proof OF that. The
manipulation is in the hands OF a comparatively
small group. and it is still too early 10 say
what the outcome viii be. 1t VIII not taks
long. however. II present buyers find they at
tract no following. too small a one TO work
with. the movement Will speedily halt Their
most encouraging factor is the way the bond
market is acting. Against them is the danger
Of a sudden declaration OF war. and the pend
ing Northern Securities decision There is next
To nothing in the talk about politics. No Cur-
rency question is an issue this time and in re-
spect 10 tariff and trusts the South is now a
great manufacturing section and every year b.
coming more So which in itself assures a eau
tious attitude toward tariff schedules. while as
to trusts. there can't he anything worse than
the Supreme Court viii give with its Certain-to-
be-adverse Northern Securities decision. This
trust busting campaign will culminate with
that.
Assuming. then. that the present bull party
Will be successful. il is reasonable TO assume
that everything which can be classed under thu
term Gould securities will be kept TO the frons
as far possible. specially the various Wa
bash issues. Denver and Rio Grande and others