New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-09
THE FINANCIAL MARKETS,
. STOCKS LITTLE AFFECTED By HIGH MONEY.
Rates for Ioansa 4dvance the World
Banks.
AFFECTED By HIGH MONEY
STOCKS LITTLE
THE WEEK I'm TwALLssTREET,

| for call money. the market refused to make
an important recessit ~, although there were
some traders who exer ctsed all their talents 10
! bring about LIQUIDATION Ordinarily an advance
in money rates such as was recorded last week
would be accompanied by sharp decline in
values. and, ordinarily, bank reserves at last
weeks level would be followed by much higher
quotations for call fund than were recorded
Thursday and Friday. tut the present times
| in Wall Street are extra sordrc,ary. and money
and stocks are not moviI " according to prec-
edent. The public is not in the stock market
to any extent: indeed, the pusiao, quite strange
to say is bearish, although It is afraid to back
up it's convictions with ope rations on the short
side Of speculation, fearing further advances
in quotations result OF the tremendous
financial power of the gres It financial interests
in Wall Street. The big nert have the stocks,
and it is to their interest to- maintain prices at
a high level. for If there Jhould be sudden
letting go of holdings there would be decline
that would cause serious embarrassment to
more than one concern and IL .dividual who now
walk in ths higher circles of finance. The
money market has been kept under control In
manner that ought to convince the greatest
bear on the stock market tia the time is not
yet ripe for extensive operaS ions on the short
side. The quotations for 8 tocks have been
maintained at q high range despite the fact
that money abroad is adva1 icing, despite the
fact that there have been most unpleasant
revelations regarding the bi g insurance COM
panies and despite the fact tlIat the admirdstra
ton at Washington intends Ito push rate legis-
lation. These factors do not worry the larger
interests.
The men who make Wall Street pinn1ng
their faith to the unbomndedl prosperity OF the
United States to help them out IN their stock
market deals. They have chosen good time
for their actions for high er quotations, and
although the greater number Of investment
securities are selling for much If not moro
than their actual value 1t is confidently believed
that further Improvement will be enjoyed by
about every issue the list before any gen.
eraI selling movement develops. Naturally the
present holders of stocks are anxious to pro-
mote a large public demand for securities, to
the end that they may be able to distribute their
speculative possessions at fancy figures, and
while the public is more bearish than bullsh
at present it is not unlikely that constantly
advancing prices will bring a public following
to the market. The public may be bearish at
the moment, but it will not operate for the de-
cline The public seldom. if ever, takes the
bear side of the market, chiefly because it knows
little about that sort of speculation. and also
because at most times it is optimistic believing
that prices ought to advance rather than de-
cline. Just now, however the public has heard
so much about graft" in high places, SO much
about the extent Of the advance that has al
ready taken place in stocks. and has read so
many warnings about the danger OF speculating
at present quotations, that it is inclined to let
the other fellows have the stocks This condi-
ton of mind, however, may not hast long. The
current holders Of stocks hope so. at least
There has been much manipulation in the
money market in the interests of the larger
| financial stock market elements. The big men
| hold enormous amounts of securities. the carry
ing Of which involves bank accommodation and
as a consequence every effort has been made to
maintain rates for loans at a relatively easy
level, to prevent any trouble in the market and
to encourage the public to buy securities at
high figures. There are many favorable fac |
tors In the general situation that money market
considerations have attracted less attention this
year than is generally usual at this period. 1t |
was realized early in the year that the bank |
holdings would be small this fall. and, accord |
ingy, the larger financial interests decided that
every possible safeguard to prevent extravagant |
rates for loans should be introduced, the result |
of these efforts being amply reflected in the |
money market of the last few weeks, when not
withstanding enormous Withdrawals Of funds, |
call loans did not go above per cent. The |
local weekly bank statement, Of course, shows
little Of the true condition OF the monetary situa-
ton in this city and It is to be hoped that the |
timely words of Mr.. Nash, delivered at the |
Clearing House meeting last week. will have the
effect of bringing about much needed reform
in the method of compiling the bank statement
and the Introduction of figures showing the po-
sition of the trust companies. Under the present
method OF computing the bank statement it is
not difficult matter to shape the results for
stock market purposes and that this frequently
has been done there is doubt in the minds
NJ Wall Street Mr. Nash the president Of one
OF the great banks of this city. says that the
bank statement is farce. and his opinion this
column freely indorses.
There has been a gradual stiffening In money
the world over The enlarged demand for ac-
commodation is accounted for chiefly by addi-
tional industrial and commercial requirements,
but also to no small extent by an increase in
financial and speculative operations In Europe
rates have been advanced rather rapidly recent
ly not so much in response to an expanding
need for money to protect gold supplies. Not
only are other countries seeking to obtain gold
from Europe, but the European money centres
are endeavorng to draw gold from each other.
In other words, something akin to a general
scramble for the precious metal is in progress.
A rather urgent inquiry has emanated from the
United States because Of the extra pecuniary
wants arising from the immensely OF this years
crops Many millions Of the metal have been
secured and the quest for further amounts still
proceeds. The importation of gold at United
States ports has been facilitated, perhaps, by the
fact that money has ruled somewhat higher here
than in Europe, but gold has been brought