New-York tribune., 1905-11-06
THE FINANCIAL MARKETS.
CONFIDENT OF HIGHER P
Loso Bank Holdings Reported-Money Likely Firm
THE WEEK IN WALL STREET.

securities are holding remarkably well. Money
conditions are not favorable at home abroad
to bull activity in the speculative markets. and
many good judges feel somewhat uneasy over
continued efforts Of speculative pools to rush
quotations to a higher level. bank statement
showing a reserve above legal requirements OF
only 81 2354.775 Was published Saturday, yet
there were not a few operators on the Stock EX-
change who did not hesitate to make the pre-
diction that there would be no extended period
of high money rates and no material setback in
stock quotations. Manipulation may carry
values to d better range. but there is nothing IN
the situation controlling the actual worth or
securities that warrants further Improvement IN
Tho greater number of issues. Conditions in the
courtry's trade are remarkably strong busl-
ness rests on a solid foundation, and there is no
indication in the movement of trade and COM
u,erca that suggests an adverse change, yet
many of the best market judges maintain that
the advance that already has taken place in the
stock market fully measures the expansion that
has been recorded in the countrys industries.
This view is not popular with the interests VINO
have stocks which they wish to sell to the public
at inflated figures, but it Is j reasonable view
nevertheless and if not followed speculation
may rush into that mad position that always is
followed by serious trouble. Some of the bulls
who not in favor of a reaction assert that
the cautious people who are preaching greater
conservatism in market operations are suffering
from hysteria~ If it is hystera, it is unfortunate
that the whole speculative community does not
catch it.
There is plenty of proof of the material pros
perity which the country is enjoying in railroad
earnings which III most parts of the United
States are uncommonly heavy. Take the Penn
sylvania company. for instance. This road de-
rives its traffic from widely scattered terri
tory in which there are diversified industries
and as a consequence the companys receipts
present quite clearly the position OF business
throughout the country. The September report
of the road, which received last week,
shows on the lines east Of Pittsburg a
gain in gross Of s., ,9SS3Oo and in net a gain of
1924 500 while on the lines west of Pittsburg
there was an increase in gross of S6l9,oOo and
an increase in net Of $930G0. Gross earnings of
the company since January have increased on
the lines east and west cf Pittsburg $40, ,SOo,
and in the same time net earnings have in
creased S3.:51. 800, comparison being made with
the corresponding period in the year before IL
further evidence is wanted of the expansion
that is going on in the nations industrial ac-
tivities it may be found in the last quarterly
report of the United States Steel Corporation,
which showed enormous earnings and more un-
filled orders than ever before recorded in the
history of the company These factors the coun-
try's large crops and other known favorable
features are not however, sufficient reasons for
carrying stock market prices to an artificial
level. The resources of the banks and other
financial institutions already have been strained
by the heavy demand for accommodation for
speculative account, and now that reserves are
so low, especially at a perior when the end of
the year requirements soon must be prepared
for. it is conceivable that the bankers who have
the power to do so may call halt In the stock
market Readings furious advance last week,
the manipulation in many of the industrials and
the increased buying by the public were not
factors that increased confidence in cOnserva-
tive circles of the permanency of the bull move
ment. Cotton bills We're more numerous last
week and this fact, with the firmer tendency in
money rates. caused a heavier tone in sterling
exchange. 1t is still thought however, that this
country soon will ship gold to the other side Of
the Atlantic Foreign discounts are likely to re-
main frn9 for some time to come, but fortunate
Iy the stain in the foreign markets over the
Russian situaton in measure has been re-
moved owing TO the improvement that has
taken place in the affairs of that unhappy coun-
try. OF course. there is plenty of gold in the
United States, and if the necessity arises for
shipments of the metal to Europe there prob
unless the present manipulation in securities
should not be checked.
Currency moved to the interior in heavy vol
unle last week as result Of renewed demand
for funds at crop centres, but bankers believed
that the inquiry from out of town soon would
cease and that considerable amounts would be
returned 10 this centre, although little con-
fdence was expressed in the theory that the
ceipts would equal the falls outward movement,
owing to the interior needs in connection with
the growth of business. Interior rates for funds
are higher than they at this point. The
possibility of an increase in bank holdings
through federal Treasury help is not consid-
cred likely in well informed quarters. for the
good reason that government receipts rum
ming behind expenditures at time when the
Treasury reserves are not any too strong
While stock market values closed weak on Sat
urday the general range as compared with the
preceding Saturday higher, with many sub
stantiaI net gains recorded American Smelling
and Reading made striking Improvement while
the greater number Of the industrials moved to
better level under the influence of operations
that did not suggest investment buying. Read
ing reached its best price record. Many
people believe that this issue is not worth the
figures quoted as a permanent investment but
the prediction is made in Reading circles that
the quotation win pass LOO. Certainly as a
per cent issue with no prospect of a change in
the dividend rate the stock hardly will appeal
to careful buyers. Strength in the Missouri,
Kansas and Texas shares apparently is based on
the idea that some larger system has, or is
about 10 secure the property rather than divi-
dend expectations. The Gould stocks have not
been particularly active, while the Hartman
inclined SSnecIIla fi,111 made