New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-03-20
THE FINANCIAL MARKETS.
REACTIONS IN PRICES PLACE STOCKS IN STRONGER
POSITION.
m Not Expected to Cause Monetary Dsturancest
ling Moring Louer-Rairoad Earnings
TIE WEEK IN WALL STREET.

/ ...;o-,, tendency that developed in last
4 - course n prices the Stock Exchange
/ ..-,,e5 70 Mace speculation In a more health
1 :, --t,,o,, hv eliminating weak holders by in
/ -, the short interest and by attracting a
Il ,,,s,an+isl class OF buyers who were anxious
:. .oc,,,,,,,late securities. The downward move
..,+ bovever. did not carry prices many points
! s.Iozv .he best figures of the year. The fact
. hs+ quotations show persistent obstinacy to
ne r,sns marked out by the bear element ought
4 !, sr1sest TO the operators who are selling at
AZ current level the danger OF being caught
hort with big line Of contracts on their hands,
especially as the larger Wall Street interests are
,ot vet ready to encourage more than inmate
,si declines. Many traders naturally would like
70 know just how long the bull market will last.
and while it is impossible for any one to TELL
,srefi study of the factors underlying the spec
r,snre and investment situation may enable
,5s 10 realize that the present market is based
4 an extraordinary conditions that are adding in
\ ttusic value TO securities, on an abundance of
money throughout the country and the dis
.os!tion Of the largest capitalists in the United
States 20 maintain an active, strong market for
stocks until plans OF a farreaching character
affecting various railroad and industrial COM
NAMES have been brought 10 a successful devel-
ournent. Judged by the standards Of the past
stock values appear high but the present mar
k,t has nothing in common with the past or
with Wall Street precedent. New factors and
changed conditions have established new stand
ards for Wall Streets activities. and the opera
for in securities who delves into the past TO
hnd guide for his market moves at present will
rot fare well at the hands Of the speculative
fates
While there was hardening in local money
rot reflect any scarcity of money in the coun-
Try, nor die IT encourage the idea that there
would be any disturbance at this centre. Local
bank reserves happen to be low at the moment
and It is not unlikely that still further losses
VIII be recorded IN the course OF the next few
weeks but. as the lighter holdings and the
prospects for additional reduction in reserves
are due to legitimate conditions that have not
lessened the actual supply Of money in the
United States, there is no cause for uneasiness
IN banking and speculative circles. OF course.
Il there should be much Of an advance in rates
the bull speculation in securities might be
checked for a time. while some Of the reckless
traders who depend small margins in big
markets might suffer severely. although the
fart that the market is not honeycombed with
this class Of operators reduces the chance of
important disturbance this account TO q
minimum. Money is advancing in response to
the demands OF the Treasury for government
deposits and in response to a healthful inquiry
from the country for funds in connection with
mercantile expansion II rates go much above
the quotations prevailing abroad there will be
large foreign offerings in the local market, and
# therefore not likely that borrowers will
experience any difficulty In securing accommo-
dston. In the foreign exchange market rates
are declining, owing to a lighter demand for
remittance and to the offerings Of finance and
security bills.
In the best informed banking circles Il is be-
lieved that, despite the announced intention of
The Gar Of Russia to continue the war in the
Far East the end Of the conflict is not far dis
tant. owing to the new attitude of the French
bankers toward extending further credit to the
Russian Treasury. It is easy enough for Russia
10 say that it viii raise enough money at homo
10 pay the heavy cost Of war, but bankers know
that Russia is not In position to raise enough
money on internal loans to make its fight with
Japan last longer than a few months. france Will
lend money to Russia TO cover the expenses in
cident TO the needs of the nation after peace has
been declared. but It now appears exceedingly
improbable that Russia Will make further loans
for carrying on a hopeless struggle With the
war ended, foreign activity in securities viii in
our own markets Europe has been buying
large amounts Of American securities in the re-
cent past The demand from foreign investors
for first class mortgage issues and shares Of
American railroad companies has been extreme
ly active. and, according to the advices re-
oeived by local houses from their foreign CORE
spondents, there is every reason to predict fur
Their active accumulation by foreign investors of
the stocks and bonds Of the railroad companies
In the United States. The local demand from
actual investors continues heavy. notwithstand-
Ing the fact that at present prices many issues
make small returns on the investment, and from
The ease with which bankers dispose Of their
offerings to public investors it may be assumed
that the inquiry from this source viii continue
Tor a long time to come.
In the early part OF the week new high quota
tons were made by a number OF stocks. while
at the close the final figures did not show
extensive declines. despite the heavIness and
liquidation throughout the market. There was
an excellent demand for the railway equipment
shares, for Ontario and Western. the iron and
steel stocks, Union Pacific, New-York Central
and Canadian Pacific. The last named security
sold es high as 149M, the best price ever made
by the issue. and friends Of the company pre-
dicted that the quotation would be carried 20
materially better level in the course of the next
rev months. AS the stock pays per cent divi-
0ehos' while In the last eighteen months it has
psio IN dividends, new stock and rights" an
amount equivalent TO over 20 per cent TO the
sOoeknoloers. its present price is not dear, nor
. NE expectation Of further improvement based
"a himsy arguments. It is said in well in
formed quarters that per cent will be guar
snteed on Ontario and Western, that Union Pa
eng will sell at 15O before going materially
over, that announcement soon will be made re-
esroing future closer relations between the
northwest, the Union Pacific and the New-York