New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-23
THE WEEK IN WALL STREET.

operations of the professional! clement ColiAAi9
sion houses having few orders for public ac-
count while the moro important speculative III
terests apparently were not disposed. except at
the close of the week, to make extensive COM
mttuents on either side Of the market There
are excellent reasons why bull activity should
be curbed at this particular time. There are
many reasons for the belief that activity on inc
bull side of the market just now would Dc loi-
lowed by serious trouble IN the Street ana IL u
therefore encouraging to note the caution th~'
the larger interests are exercising In all thelH
market speculations- The warnings that haVe
been given by people who have made a close
study Of the general situation have been ioi-
lowed IN the last few days, and 1t is to be hoped
that moderation will continue to be the watch-
word in the speculative community in the bal
anca Of the wear Money market conditions arc
not in favor of bull speculation The specula-
tive position is not strong enough TO bear the
burden Of further active operations for rise
at present. and the chief banking interests N
this city are opposed to further bull activity
AL the high grade Issues are selling for as much
as they are intrinsically worth The low prlceo
securities have enjoyed a fair amount of i'm
provement, and on their merits are selling hlgh
enough; tina; is, in the greater number OF cases.
but at some future time 1t is not unlikely that
there VIII be a considerable further appreciation
in their market quotations. No effort Is being
made to create q bear market. The bankers OF
Wall Street who have in charge the greater part
OF the money in the country and tho country
credit facilities are anxious to preserve stability
in the securities market and to discourage the
advance of prices to g fictitious level
Perhaps the most interesting feature Of the
current financial situation is the strength in the
foreign exchange market Rates in the last ten
days have been advancing steadily until they
i0tc he
ing level and it is now thought likely that
there Will be shipments Of the precious metal in
the course of the next two weeks. There is at
the moment an unusually heavy demand for
remittance Requirements for bills are extern
sve and as remittance must be made for Jap
apese bonds purchased in the United States, to
saw nothing of the demand for exchange N
connection with the settlement OF this country's
Indebtedness abroad the chances favor stun
market for sterling for some time to come. II
is true that the United States will soon be ship
ping large amounts Of cotton and food products
TO Europe. but Notwithstanding the enormous
corn and grain crops and the moderately heaVy
cotton harvest which give a large exportaole
surpIus our obligatC5 abroad at the moment
and the obligations which the local hnanciers
are expecting in the near future as, for IN
stance the taking of large amount OF Russian
bonds suggest the maintenance Of high quota
tons for sterling It is not unlikely. however
that before the close Of the year the supply of
grain and cotton bills in the local exchange
market will be largely increased On actuai
trade account the balance for a long time has
been in favor of the United States, but despite
this fact the United States has shipped IN the
st nine months more gold than it has received
the net exports OF the metal since January
amounting TO more than S12, 900. According
n the governments statement of foreign trade
for the month Of September. received last week.
there was al. excess Of exports over imports OF
merchandise to the value Of nearly S34OOOOOO'
making from the first Of the calendar year an
excess TO the value of more than S23OOOOO0o.
The large trade balance has been offset by
other factors and there is no reason TO suppose
that these factors Will not continue TO be I'M
portant features Of the international monetary
situation for a long time TO come. Through the
medium of the foreign exchange market we
have made enormous loans abroad. Europe's
capital is at our disposal at most times but just
now there are certain well defined indications
that warrant the belief that Europe is not dis
nosed at the moment to make further advances
to the United States. Rates for money IN tho
foreign capitals have been advancing under the
influence of an increasing demand for accom-
mediation Discounts in Paris, Berlin and Lon
don are unusually high for this period OF the
year. and the chances. therefore. of further i'm
ports OF gold at New-YoTk are extremely slim
Exchange is moving against this centre and
gold exports are more probable than gold I'M
ports. Money in New-York was firm last week.
and while there may be some relaxation in the
course of the next few weeks the leading bank
ers do not believe that there Will be extreme ease
for a long time to come. Indeed, they look for
tieht money in December. The fact that the
tendency in the money markets of the world is
in favor of strength in rates for loans does not
indicate any weakness in the general financial
position On the contrary. it reflects sound
conditions in the money markets as the strength
is direct reflection of the expansion that is go
ing in the industries of the world. II bust
ness conditions are sound the position Of the
money market must of necessity be healthful. 1t
may not please the speculative element In Wall
Street to know that the chances favor stir
money rates for an extended period but it is
not likely that the genuine holders Of American
investment securities will feel at all uneasy over
the monetary situation.
Conditions governing the position of trade IN
the United States are sound and healthful. anG
unless q period of speculation should break out
in the business world the chances favor time
of healthful expansion. Reports from the iron
and steel trade indicate tremendous activity In
that branch OF the country's industrial activi-
TIES railroad earnings IN most secuons are
large. showing big gains. as compared with the
time year ago, the chief exceptions be-
ing presented by the roads in the Southwest
principally the Gould companies which are MAX
ing poor returns. IN this connection. however.
1T should be borne in mind that the Gould earn
ings compare with unusually heavy traffic re-
ceipts year ago. and that there has been an
effort by the opponents OF the GouIds to divert
traffic to other companies.