New-York tribune., 1905-03-13
THE WEEK IN WALL STREET.

An excellent demand for stocks for investment
and speculative account was reported through
out the last week, transactions in all classes of
securities being heavy IN most of the leading
Issues There was no disposition the part Of
the substantial interests to work for lower
prices. the only declines IN the six days of trad
ing being due to ordinary realizing sales and
quick turns on the short side by courageous
operators who were able 20 take advantage Of
temporary pauses IN the bull movement to bring
about passing reactions. In many of the active
shares high record quotations were estah-
Ished- The advance. however, did not encour-
age the idea that the stocks concerned had
touched the top prices for the current year; in
deed, opinion generally favorable to the
theory that the upward movement Will be car
raed considerably further before the big decline
that generally follows long periods Of rising
values begins Speculative reactions may be
looked for with Increasing frequency as the mar
ket advances, but until there is some note
worthy change IN the position Of affairs affect
ing the investment and speculative situation 1T
is not likely that liquidation will be heavy
enough TO a widespread crumbling in
quotations. II is not difficult to appreciate the
fact that representatives of of the
strongest aggregations Of capital in the country
ara behind the present market. These interests
have In mind plans Of great importance to the
railroad and industrial corporations in tbs
United States that require for their success
strong market for seourises. and for this reasca
,sione it IS easy to und.S+s2yd whS the bear ele-
Yaeat is so small and unsuccessful In the
ditions governing She actual worth of securities
there IS no encouragement for the advocates Of
lower prices. AMI a consequence, holders Of
stocks bought outright tod on large margins
see no reason ss-sst their possessions at current
figures.
Spectators who operate borrowed money
OF course should bear in mind that the spring
demand for funds in connection with mercantile
requirements may be heavy enough to bring
about an advance in rates at this centre
companied by temporary declines in securities
and in view Of this possibility it may prove wise
for the small men TO take their profits at pre-
vatling prices According to the opinions OF the
more substantial market interests, there may be
d spring decline IN stocks large enough TO wipe
out the lightly margtned holders, but they are
quite confident that such decline will serve to
encourage further accumulation Of securities by
people with big bank accounts and that the up
ward movement will be resumed with all the
force that is displayed IN the present specula-
ton. II is a noteworthy fact that at the mo-
naent the chief preachers Of cheaper values are
sold out bulls. Striking events of the week
favorably affecting securities were the Supreme
Court decision bringing to end the litigation
IN the Northern Securities case and the success
Of the japanese arms in the Far East, the latter
factor exertng a most favorable influence on the
foreign money and stock markets. which in turn
reflected in market by heavy pur-
chases Of American securities for European ac-
count. A reduction in the Bank Of England's
rate of discount TO the lowest point in seven
tance to the money markets Of the world. while
the continuing IN local money market
quotations, of course. was a feature that served
TO create confidence on the part OF the bull eIe-
ment or the Stock Exchange. The relatively
low position Of the reserves of the New-Yorls
banks. however, does not warrant the theory
that the spring season will pass without a
higher quotation for loans
The strength Of the forces under the present
speculation in securities was reflected in the
absence Of liquidation the announcement of
the strike the Interborough lines and in the
absence of selling on the poor reports Of railway
earnings in the South ard Southwest in recent
weeks. Heavy decreases in that part of the
country are not significant Of conditions affect
ing traffic throughout the United States the
falling of in receipts on the Southern and
Southwestern roads being due to local weather
conditions that already have ceased to be fac
Tors IN the situation There is nothing vvrono
with the industries Of the South In fact the
South is enjoying great prosperity in most lines
OF industrial activity, with every indication of
further Improvement in the rest Of the wear In
all parts Of the country wonderful gains are
reported in Industrial enterprises particularly in
iron and steel and allied trades as, for Instance
the railway equipment business, which under
the influence Of increasing orders from the
railroads for new cars and locomotives is show
ong marked Improvement over this period a
year ago. So far the equipment securities have
1aned 10 share TO any extent in the speculative
activity on the Stock Exchange. but. IL is not
unlikely that in the course of the current buu
movement these issues will move toward a be+
ter level The investment value of the preferred
industrial securities is growing, and the fact
that good and per cent stocks may be Sc
cured below par ought TO encourage more ac-
tivity in such issues and also in industrial
shares that are paying less The copper trade
is enjoying great prosperity, and the advancing
tendency exhibited by the copper shares last
week doubtless will be followed by further heavy
buying of the securities In this class. both on
and of the Stock Exchange
Among the railroad shares the Hartman
issues were, Of course. most favorably affected
by the Northern Securities decision on the
theory that. despite the victory of the Morgan
Hill element the ending Of the litigation would
exert q most beneficial effect on the railroad
situation in the Northwest And the same con-
sideration was used as an argument on the gem
eral railroad list which responded easily to tbe
buying by people who took the various issues
following the ruling of the court The assets of
the Northern Securities Company will novv ba
divided. and the Union Pacific COMPANY will
come into possession of assets tba+ aro ,v.,