The Washington times., 1905-07-10
NEW YORK

the leading active railroad Sc
eurities reached level last week
len len points an IN a nyerags & price S aboFe the
tria! group the average Improvement
was nearly as great. Throughout the
week the tendency was almost uniformly
volume of business that represented
covering OF shorts. buying by commits
sion house operators accumulation for
investment account in many OF the at
sion house operators. accumulation f1r
the advance by the interests who are
tied UP with stocks and bonds which
they are anxious 10 distribute 10 the
public. The fact that there are SO many
influential people long OF stocks which
they have been carrying for many
lnont rs Is an argument for higher prices.
Tor the good reason that these people
are working for better quotations at d
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 CT the
substantial individual and syndicate
operators In Wall Street. and it is un-
aerstood e that they are still confident
above the current level. despite The
iact that IN many parts Of the list mar
ket quotations more than measure the
Investment value of the securities AS
frequently pointed out there is no
profit In going against a we'll de-
llned movement on the stock exchange.
iio H1 er Wnether or not stocks
are selling at fictitious figures, and al
TINS particular time there is more than
| the usual danger in selling stocks short.
espeG,aly 9sa g among operators of small
aLea,is; nh. Perhaps the man who goes
slorr Ior long period eventually viii
make ms profit, but the chances are
mat better opportunities for selling
snort sno wlI develop later on IN the sea-
SON Whe.' the big men have unloaded at
prices well III advance of the prevail
ing range Of quotations.
Well informed men believe that tho
money market will run into a nerioi
or mheh higher loan rates in the fan
aHQ as consequence they are anxious
les - Dftms haSoa aoout higher prices for sec,rl
10 move upward. There Eis no good
| argument showing that rats for money
should not advance, reasons for which
nearly every day in the last two weeks.
As to the possibility of assistance from
the Federal Treasury in the event of
a assurance at this center, it should be
oorhe IN mind that while for the next
Two months the Governments receipts
prooaoly VIII be in excess OF expendi-
t 1urss the - Treasury has not a large
increase that will be brought about
through the return of Government DO
posits from the national banks In the
current m month There is little chance of
the Paris situation changing to an eX-
tent tnat Will not call for further ship
ments of gold from New York. ana
theIe Is no reason to suppose that there
rency IN connection with financing the
haryests. Every summer invaria hlv
| there IS heard the tiresome prediction
,hat the interior VIII have an abundance
without calling upon New York, but
every year this idea becomes more silly
IN the hight Itto Of the actual movement OF
money Ine west and South are It IS
| true. in good financial condition but
their funds are on deposit in New
York. and In the fall they will with
draw them II should be noticed that
the local bank reserves are relatively
small just at a time when the chances
favor large gold exports large demands
for financing bountiful crops and large
of trade.
peculiar significance attaches to the
ifotation at this time of q new Japanese
loan. There are two ways OF seeing it.
Japan Is In no need of money. She has
balance in New York alone of possibly
sea.W.eO BY floating this new loan,
favorable position. When the peace pleni-
potentiaries meet in August the Japa-
hese VIII be able to point to immense
casn balances here and at London and
Berlin- 1t Will be moral argument Of
| considerable force. On the other hand
r. peace is concluded between the two
nations, Japan will be in q position Of
having anticipated Russia in the money
markets or the world by financing her
| necessities ahead at a time when her
| credit was best. Russia eventually will
| have to become a large borrower not
only to pay a war indemnity to Japan.
| but FOR purposes of rebuilding The par
ticipa ton of Germany In the new loan is
! Interesting Bankers say, too, that
{ French investors will buy the new Japa-
nese bonds readily The financing of
these large foreign loans. now for
| Japan and later for Russia, may inter
! fere seriously with the placing Of other
! ferns of investments, and bankers are
| somewhat rueful on this point. but
most Of them are sangu!ne as TO the
ability OF the investing classes of Eng
land, Germany, France and the United
States to absorb these foreign loans
without pressing older Investments for
| sale on any great scale.