New-York tribune., 1905-11-13
THE WEEK IN WALL STREET.

that the stock market was ripe for a reaction
made 1t for time plain sailing for the bear
element. The bears have had so little success
in the last eight months that no one should be-
gTTdge them the happy time they had or a
number OF days following Tuesdays election.
Whether or not they will be able to follow up
their victory cannot be stated Just now. but the
chances are that they will not enjoy long
period of triumph, for the good reasons that
there is no prospect of prolonged stiff money
market, no large public following in the mar
ket, and no necessity the part of the larger
speculative interests to part with their holdings.
In ordinary times 10 per cent money would
bring about severe liquidation the Stock Ex-
change and extensive declines. but the selling IN
the last few days not particularly heavy,
while the declines were not extensive. the rela-
| tive flrmness being due to the Willingness OF
the larger interests to absorb offerings and to
the absence of heavy public selling. The pub
uc-that is, the section Of the public which Is
known as the financially weak element-is- not
in the market to any extent and the only weak
features are to be found among a number OF
overloaded pools. which the banking interests
are willing to see sacrificed for the good OF the
general speculative situation. Quite a large
part of this element forced out of the mar
ket last week and 1t is not unlikely that more
will follow.
with funds and who have been accumulatins
securities for many months. are satisfied tha1
after the money market returns to a normal po-
sition there will be further material improve
ment in prices despite the fact that many issues
are selling at a level which means(a very small
investment return 10 present purchasers ILLS
optimism is based the remarkably strong con-
dition of trade in all parts of the United STATES
on the confident belief that there will be no I'M
portant setback in the country's industries for
many months to come, on the belief that money
market conditions throughout the world VIII not
develop disturbing factors and the under
standing that there will be tremendous demand
for investments the world over in the course
of the next twelve months. The so-called
Hearst spectre is not worrying the conservative
Wall Street men. The possibility thal MI.
Hearst may be seated In the Mayors chair trou-
bles speculators who have light margins and
| encourages the professional element TO work for
lower prices but the real leaders in the market.
| the men who are the largest holders and who
have the biggest bank accounts, not alarmed
over the situation. They know that even if Mr..
Hearst should be seated it would be impossible
| for him to carry out any radical measures
| against vested rights, and, moreover. they are
convinced that the Municipal Ownership League
candidate would not attempt anything OF the
kind for the simple reason that he Is largely In
terested in investments himself. Wall Street
need not worry over Tammany Halls silly red
flag goblin. It did good service last week. how
ever In eliminating a number of undesirable ac-
counts from the market: but the chances are
| that it has about spent its force a market
factor. Wall Street RECEIVERS easily from Its
| spasms of fear. and 1t is probable that the
| money market will soon cease to have de-
pressing influence on speculative sentiment.
! Again has the foreign exchange market un-
dergone almost complete transformation
When exchange was developing strength at
| rate that appeared must soon lead to shipments
| of gold there followed a construction in call
/ money and short dated loans that rendered an
outgo of the precious metal impossible. This
metamorphosis in exchange has taken place
! in a few days, and it should be added there
is no telling what the immediate future in eX-
! change may not bring forth While sterling rates
! have fallen until they the level at
which gold might theoretically be imported, 1t
is regarded as practically certain that no gold
will be brought from Europe for several months
TO come unless the monetary situation at this
centre should develop panicky conditions. The
/ chief reason why gold is not expected to move
| from Europe to the United States just at pres
ent is that real exchange conditions do not
warrant it. The existing depression in exchange
| is more or less artificial being entirely the
result of the stiffening in money rates, and
| in no sense representing the state of inter
! national pecuniary relations When money re-
| lakes it is to be presumed that exchange Will
strengthen, and as the tension IN money at
present is clearly a temporary affair 1t Is Ike
| ly that there will soon be another change In
I the sterling market. Exchange weakened when
money hardened because the rates for money
| were forced above the rates ruling in Europe.
! thus enabling the exchange houses to make
! a proft by borrowing the other side of the
| Atlantic and lending this side Their proc
ess was to sell bills of exchange on their Euro
mean correspondents and lend the money oe-
rived from the bills. They drew against credit,
,,no, which they were charged the current
+ rata of interest abroad, and their gain, there-
fora eoualled the difference between that rate
ond the rate they received on the money oo-
| tained from the sale Of their bllis
! A brisk business was transacted IN the eA-
| change market in the closing days OF the last
| waek The decline In rates induced free buying
| of bankers bills by importers and other remit
| ters in the regular course, while 1t caused an
! absorption of bills for use in covering maturing
| anance bills that put forth in the summer
| or I'm the spring. In addition there was demand
| for bills TO be used in transmitting to London
| navn1ent for japanese bonds subscribed for IN
| the United States. Altogether, therefore, there
| was a ready sale for all the bills that the ex-
| change houses saw fit to issue. The amount Of
| commercial bills that concurrently came on the
| market was large, but 1t was hot up to the
earlier calculations owing to the still restricted
| sbipnent of cotton, although exports of the
| nroduct showed some Improvement With money
! and exchange in a normal position gold would
l ,v,tbort much doubt be exported. in view of the