New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-03-20
THE FINANCIAL MARKETS.
REACTIONS IN PRICES PLACE STOCKS IN STRONGER
POSITION
L Reserves Not Expected Cause Monetary Disturbance
ling Mo1i"g Lower-Raihoad Earnings
TIE WEEK IN WALL STREET.

Il oss-.~ .ba short interest and by attracting a
Il s..r,a1+ia, class OF buyers who were anxious
4 : occ,,y,,,late securities. The downward move
/ a,+ hovever. did not carry prices many points
. s.Io,y .bs best figures of the year. The fact
II hat quotations show persistent obstinacy to
ne y,ans marked out by the bear element ought
Il = s,,rgest TO the operators who are selling at
/ Ae current level the danger OF being caught
mort with a big line OF contracts on their hands
,snecaJIy 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,
,srfal study Of the factors underlying the spec
r,stre and investment situation may enable
oss 10 realize that the present market is based
! ep extraordinary conditions that are adding in
\ tsusic value TO securities, on an abundance of
money throughout the country and on the dis
pos!tion Of the largest capitalists in the United
states TO maintain an active, strong market for
stocks until plans Of farreaching character
affecting various railroad and industrial COM
psnies have been brought 20 successful devel-
ournent. Judged by the standards OF the past
stock values appear high. but the present mar
ket 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
tor 81 securities who delves into the past to
find guide for his market moves at present will
rot fare well at the hands Of the speculative
fates.
While there a hardening IN local money
market rates in the last week, the advance did
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
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 on 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
II Is 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 It is be-
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
TO say that It wiz raise enough money at homo
10 pay the heavy cost of war, but bankers know
that Russia is not In a position to raise enough
money on internal loans to make its fight with
japan last longer than 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 viii make further loans
for carrying on hopeless struggle. With the
war ended foreign activity in securities Will in
crease, the effect Of which Will be favorable TO
cur 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
spoAdents 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
The ease with which bankers dispose Of their
offerings to public investors it may be assumed
that the inquiry from this source will continue
Tor long time to come.
In the early part Of the week new high quota
tons were made by a number OF stocks, while
al the close the final figures did not show
extensive declines. despite the heaYiness 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
ana Canadian Pacific The last named security
sold as high as 149ss. the best price ever made
by the issue, and friends Of the company pre-
olcted that the quotation would be carried 20
materially better level in the course of the next
lew months. AS the stock pays per cent diVi-
oehos' while In the last eighteen months it has
palo IN dividends. new stock and rights" en-
sD-Oont equivalent TO over 20 per cent 10 the
s''cKnoloers, its present price is not dear, nor
the expectation OF further improvement based
"a hiinsy arguments. It is said in well in
'OfIned quarters that 3 per cent will be guar
ehleed on Ontario and Western, that Union Pa
ing VIII sell at 10 before going materially
over, that announcement soon will be made re-
gsrding future closer relations between the
northwest, the Union Pacific and the New-York
central that the railway equipment shares are
Delhg accumulated by strong interests to hold
-"r higher prices. that the St. Louis Southwest
s4H Shares viii be among the active bull features
a me near future and that the low priced issues