New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-04
THE WEEK IN WALL STREET.

agreement for ending the carnage and the de-
struotion Of wealth in progress for year ana
a half in the Far East was promptly followed
by local stock market decline, which before the
end Of the week had attained large proportions
and by temporary price depression on the Eu-
ropean exchanges also Here there seemed to
be little direct connection Of cause and effect
There was certain amount Of selling on the
good news" but the influence Of selling of that
sort would ordinarily be negligible. Conditions,
however. were ripe for substantial market re-
action and the announcement that peace had
been arranged, with its corollary Of large COM
ing loans by both of the long warning nations,
suff1ced to check and reverse the upward march
of securities values which had recently been
becoming less swift and confident as the drain
of cash from this centre had increased and the
banks reserves had dwinded. The reaction
was severe enough TO wipe out a great NUMBER
OF weakly margned and pyramided accounts
which had accumulated during a considera Die
period of unobs tructed advances, and to bring
the market into q much sounder technical po-
sition
It appears to be the fact that preparations
are making to bring out the Russian loan not
long after the signing Of the treaty Of peace
but that loan although in the aggregate or great
size will be offered in instruments covering a
period Of year more Further 1t is ex-
pected to be chiefly placed in Europe, where
preparations had already been made Tor meet
ing the situation which would have been created
by the necessity Of Russia's raising the amount
of heavy indemnity as we'll the sums re-
ouired for the purpose of repairing the waste
of war. so that in view of the lessened de-
,,and II is rather improbable that any part OF
the foreign capital now employed here will nave
m he withdrawn in order to provide Tot the
financing of the Russian loan. japan as pointed
out few days ago by Mr., Takahashi' nnallciai
commissioner of that government IN Lohuoii'
has vast credits still untouched in european
centres and in this city. and is not likely Tor
q wear or more to put out fresh foreign loan'
the proceeds of which will be devoted 10 taxing
up internal obligations incurred during the
progress of the war.
II Is NOT a strong feature of the local money
market situation, however, that part OF tne
money now held by the clearing house 1nstl-
+r,ions and owned by Japan is subject to call
at any moment. In London fortnight ago.
,yban money was tight the Japanese suddenly
withdrew from the Bank Of England a sum
estimated at from $4,000 600 to t4,ooo'ooo ana
placed it with several large clearing mousse
banks, which loaned it in the market ehoihe
the stringency The London Times IN COM
menting upon the incident remarked that an
artificial state of affairs had been corrected but
added:
But the suddenness and rapidity with which
the change of japanese policy has been carried
ont sousing the market With a wholly unex-
pected flood of credit in the space of an hour or
two was somewhat trying to the nerves OF the
economic body; and bill brokers' who have been
puzzled before now by less important ouI
souallv sudden changes in Japanese monetary
arrangements, naturally 1ncllneo 10 "oIuer
how far they are justified IN expecting thaI tiie
present policy may be relied on as permanent
For the reverse process, if carried out with the
same rapidity and suddenness, might cause
grave inconvenience
Conflicting reports have been current IN INC
last week respecting the outlook IN the copper
metal market, and CONFIDENTLY with TINS discus
sion a successful bear onslaught has been mace
i'm the stock market upon Amalgamated Copper
and American Smelling and Refining. each OF
which issues has yielded several points. On
Friday following five advances in the preceding
ten DAYS which represented q total marking up
of three fourths of cent pound IN the ofnclai
price here of the metal. the BID price was re-
duced one-fourth OF cent, equivalent TO d de-
cline of one-eiehth of cent in the official sell
ing nrice and declines also occurred in the Lon
don market the latter part of the week. China
hand, part of which, when it became known
that the war was about to end had been dis
nosed Of at large price concessions as Japan
had cea sed to be the prospective market for THIS
stock Important producers here disc-e9ited the
reports of an accumulation in China. and de-
clared that efforts to keep prices down IN the
United States had proved unavailing, and that
practically spot copper was for sale at any
price All accounts of the iron and steel indus
try agree in describing conditions as SAUSAGE
tory in the highest degree. Pig iron sales con-
tinue to gain in volume, and prices are strength
enine The prices of various iron and steel
nroducts have been advanced in the last week
The steel rail pool has reaffirmed the present
price of rails S2S q ton, the official rate Tor
1906. and orders are so heavy that some OF the
small Western roads are reported TO be paying
50 70 So a ton premium for delivery before jan
uary Railroad earnings continue satisfactory,
and no setback TO the grain crops has occurred
in the last week. The harvesting of the big
spring wheat crop has been practically compet
ed and with fortnight or so more Of exemption
from frost the garnering of a record harvest Of
corn will be assured. In all parts Of the coun-
trv except the yellow fever districts. business
is thriving and merchants confident of an
extended continuance of. prosperity. An indica-
ton of the soundness OF the business health is
found in the fact that the commercial failures
in August were only S5l in number and S6,140,-
$50 in amount comparing with 900 bankrupt
cies involving liabilities of S10491 498 in Au
gust 1904 and still heavier losses in the same
month Of the preceding year.
The for call loans advanced TO 3 per cent
on Friday and is likely to go higher in the
course of the present month, as the demands on
this centre for funds for moving the vast har-
vests Of the year are heavy and will not ahate
for several weeks, and the requirements of e.
hroa activity must al he