New-York tribune., 1905-08-07
THE WEEK IN WALL STREET.

values in the greater part of the six Gays ol
business was in the direction Of higher quota
tions There was important commission
house demand and in many cases manipulation
by the professional element was in evidence
but there was. nevertheless. a certain buying
power that represented something more aggres-
sive than the ordinary speculative activity for
higher prices. Although prices high, in
number of cases much higher than warranted
by the investment yield. brokerage houses re-
ported a willingness on the part of many in
vestors to take securities especially in the case
of the leading investment railway stocks and
bonds. This class of buyers is not accumulating
securities for speculative turn. 1t is buying
first class issues to put away in strong boxes,
but in some circles of the Street the belief Is
growing that better opportunities to secure
stocks will be presented in the fall, when there
may be sufficient pressure in the money market
to bring about a lower level of values. Not
wthstanding the idea that quotations may seek
a lower range in the autumn the general i'm
preston in the Street is that prices will move to
a better level before any important setback de-
velops 1t is not at all improbable that values
will be carried still higher but it may be we'll
TO bear in mind that the current level has been
reached by an advance that has covered many
weeks. and that in that time there must of
stock holdings of the more important market
interests Whether or not the public will be
able 10 hold the stocks thus bought. presumably
on margin. will he made clear when the money
market begins to feel the effect of the demand
for crop moving purposes
The adverse government cotton crop report
was not factor in the stock market while it
failed 10 create any disturbance on the Cotton
Exchange. doubtless because the showing
expected and had been well discounted There
are so many favorable offsetting factors in the
general situation that it is not surprising that
the financial community refuses to show alarm
over the poor outlook in the cotton fields. Ac-
cording TO current prospects there will be
large wheat harvest and record breaking corn
crop. to say nothing of a big gathering of other
products of the farm, and as a consequence
there Will be good times in the agricultural com
munity, big railroad earnings and an active in
quiry from the farmers for general merchandise.
The outlook in the business world is unusually
promising for this period of the year but, of
course, much of the current and expected inn
provement in the prosperity of the country al
ready has been fully measured by stock market
values. The coal stocks were in good demand in
the last week. Lackawanna making new high
record, selling $50 points above its low
price of the preceding year while Reading sold
near its best price. which recorded in July.
Canadian Pacific and the 500 shares con-
tnued to he absorbed by the same interest that
for so long a time have been prominent in the
movement i'm these issues. The yellow fever at
New-Orleans had particular effect the
shares of the Southern and Southwestern rail-
roads, and no concern was felt over the pos
sibility of a temporary falling off in earnings
a result of the possible interference to traffic
from the plague so called. Regarding railroad
earnings il may he worth investors time to
examine the remarkably favorable monthly re-
ports received last week, particularly in the
of Pennsylvania, Union Pacific and Southern Pa
cifc
Ii may safely be said that there rarely has
been such situation in foreign exchange as
exists. Conditions such that, instead
of leading to gold imports in the fall as usual
they are likely result in heavy shipments of
the precious metal II does not appear prob
able that the supply of grain cotton and other
commercial bills will be anywhere near sufi-
cient to provide nover for the tremendous
amount of finance bills that have been put forth
since last February. In that case gold will have
to be exported Money having ruled almost
interruptedly much cheaper in Europe than in
the United ST iAs, the circumstances have been
particularly favorable for the issuance of bank
ers bills, whether they were specifically finance
bills or not. Finance bills always are bankers
bills but bankers bills are not always finance
bills Ordinarily. finance bills constitute no
great part of the aggregate of bankers bills,
but in the last six months there has been an
extraordinary emission of finance bills. The
term finance bills is now loosely applied. Orig
inally it meant bills drawn in connection with
international financial operations, but finally it
has become an accepted synonyme for loan bills.
loo
dropped and the term finance bills used i'll its
place. For another thing, finance bills formerly
were bills drawn on and likewise drawn for the
account of the exchange houses abroad but now
they more frequently are bills drawn on foreign
houses for the account of the exchange firms in
New York that issue them.
The great bulk of the finance bills at present
outstanding represent loans of sterling to effect
the fotation of new securities and to carry OIL
speculative dealings in stocks. The finance bills
have been employed because of the shortage in
the domestic supply of funds available for specu-
lative purposes These bills afforded access to
foreign capital. being drafts money orders
collectible in Europe. They disposed of to
concerns and individuals having payments to
make in Europe and in utilizing them in dis
charging obligations i'm Europe the transfer OF
gold across the ocean was avoided. although that
not the chief accomplishment. The great
benefit derived from them was in the relief they
afforded the money market The bills were bor-
rowed instead of money. and they correspond
ingly lessened the demand for money. Ordina-
rly gold is brought to this country from Europe
in September and October to aid in financing
the movement of crops. The indications that
this year there not only will be no gold received
from the other side of the Atlantic in those
months. but that in October and November gold