New-York tribune., 1905-07-10
THE FINANCIAL MARKETS.
tSTOCK VALUES ON THE UPWARD SWING.
Money Market Outlook Not Promising General Conditions
Big Railroad Earnings.
THE WEEK IN WALL STREET.

THE WEEK IN WALL STREET.
Stock market quotations for the leading active
railroad securities reached level last week ten
points. average price, above the low figures
in May. while in the industrial group the aver
age improvement nearly as great. Through
out the week the tendency almost uniformly
in the direction of higher figures on a volume OF
business that represented covering Of shorts.
buying by commission house operators. accu-
mutation for investment account in many OF
the attractive shares and manipulation for the
advance by the interests who are tied UP with
stocks and bonds which they are anxious to
distribute to the public. The fact that there
so many influential people long of stocks which
they have been carrying for many months is an
argument for higher prices. for the good reason
that these people are working for better quota
tions at a time when conditions affecting the
actual worth Of securities favor the bull side
Of speculation. The improvement of the last
month has been due to the operations of the
substantial individual and syndicate operators
in Wall Street. and it is understood that they
still confident their ability to carry prices
well above the current level despite the fact
that in many parts OF the list market quotations
more than measure the investment value of the
securities. AS frequently pointed out in The
Tribune. there is profit in going against
well defined movement on the Stock Exchange.
matter whether not prices selling at
fictitious figures and at this particular time
there is more than the usual danger in selling
stocks short especially among operators of
small means. Perhaps the man who goes short
for a long period eventually will make his profit.
but the chances are that better opportunities
for selling short will develop later in the
season, when the big men have unloaded at
prices we'll in advance of the prevailing range of
quotations.
Well informed men believe that the money
market will run into period of much higher
loan rates in the fall and as a consequence they
are anxious to bring about higher prices for
curities before the money market begins to move
upward. There is no good argument showing
that rates for money should not advance. rea-
sons for which have been pointed out in this
column nearly every day in the last two weeks
AS to the possibility OF assistance from tho
federal Treasury In the event of disturbance at
this centre, it should be borne in mind that
while for the next two months the govern
ment's receipts probably will be in excess of ex-
penditures the Treasury has not a large work
ing balance notwithstanding the increase that
will be brought about through the return OF
government deposits from the national banks
in the current month. There is little chance of
the Paris situation changing to an extent that
VIII not call for further shipments Of gold from
New-York, and there is no reason TO supnose
that there will not be a large demand for cur
rency in connection with financing the harvests
Every summer invariably there is heard tho
tresome prediction that the interior will have
of
poses without calling upon New-York but every
year this idea becomes more sillv in the light
of the actual movement of money The West
ana South are 1t is true in good financial con-
dluoh' out their funds are deposit in New
York and in the fall they will withdraw them.
IL shoulo be noticed that the local bank re-
serves are relatively small just at time when
the chances favor large gold exports large de-
hahos Tor financing bountiful crops and large
demands from the ordinary channels of trade
AT the moment the outlook I'm the r,onay
market fails to worry operators in securities
Rates are comparatively easy. and then general
conditions throughout the country ara e1+ra,
favorable. The crops are proeressIpe, in q mo-,
ner that toreshadows a big harvest RAILROAD
earnings are heavy, bank clearings are break
ing all records. the iron and steel business Is
aeuVe for summer season. while trade in gen.
efal Is IN condition that suggests Industrial
prosperity Cor a long period To come rha-a ,s
well founded expectation of increa sed d,ri
dends on many railroad shares in the near rut,re
particularly in the case of Union Pacific Ral+i
more and Ohio and Norfolk and Western. and
lhere Is a Wei founded belief that within the
next year many Of the low priced issues will
move TO higher level on buying bv interests
VINO VIII take the shares on the practical cer
lalhty or dividend payments There are q num-
Der OF stocks now in the non-dividend having
class that at some future period will become IN
Nestfnent issues unless the United States should
go INTO bankruptcy, and there is no prospeo4
OF general insolvency in this country IL is easv
10 understand why so many people are bullish
over the future Of the shares that are now re-
turning nothing to their holders Erie common
Tor instance. undoubtedly some day will be q
dividend paying Stock and IT is safe 10 saw that
eventually its price will run ahead of Readings
quotation. The Erie company is an imnor+ap+
factor in the trunk line situation. as well as
being big coal carrying road while the Read
ing has practically nothing to depend upon. ex-
cept its coal mines and coal traffic The coaI
trade is not always prosperous and as a con-
sequence there is no surety that the Reading
company will be able TO maintain it's common
the fact that the stock is now moving as II IL
were to remain for all time one of the prime in
vestment issues
canadian Pacific was in good demand in the
last week. Tennessee Coal and Iron enjoyed
sharp advance. the United States Steel shares
were taken by an excellent class Of buyers. while
all solid investment issues appeared to be popu-
lar with people with idle funds. Holders of
To-