New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-09-18
THE WEEK IN WALL STREET.

general position Of business in the United States
that IT is not all surprising that the advocates
Of higher prices on the Stock Exchange are IN
clined 10 believe that despite the Improvement
already recorded in quotations much higher
level viii be reached in the course of the next
few months. 1t is not thought. however. that in
the immediate future prices will show any pro-
nounced strength. owing to the uncertainty re-
garding money market rates Indeed, it is be
lieved that for a few weeks there will be irreg-
Ilarity in speculative movements. accompanied
by frequent declines. particularly in the case of
the high grade issues which for so many months
have been advancing, but it is contended, never
theless that despite the present position of the
money market there will be no decentralization
IN stocks. There is no good reason why legiti-
mate holders Of securities should feel uneasy
over the outlook. There is. however. some rea-
son for extreme caution on the part of operators
who enter the market on small margins. Money
doubtless will go higher and this means call
ing of loans, which, Of course. Will necessitate
readjustment Of speculative accounts. involving
no doubt losses among the people who are car
rying securities on borrowed money. The gen.
eral position Of money is sound. but the large
demands throughout the country for funds in
connection with business expansion and the
handling of the crops naturally have brought
about a somewhat strained condition in New
York money circles. This years crops are
enormous. and the fiscal requirements from the
crop regions therefore unusually heavy.
Fortunately the local market is in position to
draw gold from Europe, and the announcement
last week that an engagement of over $1,O0000O
had been made of the encouraging
factors Of the week in Wall Street.
In addition to gold import announcements
there were number of other favorable develop
nlents bearing directly on the securities market
as. for instance the governments crop report
showing almost unprecedented conditions in corn
and wheat, the statement Of foreign commerce.
showing record breaking exports Of cotton and
general merchandise. large railway earnings
throughout the country and most promising re"
ports from all the trade centres of the United
States Foreign commerce in the month Of
August, statistics Of which were received on
Friday from the Department of Commerce and
Labor, show that the outward movement of
merchandise for the month larger than in
any preceding corresponding time in the history
of the country. There was an increase both in
exports of domestic products, such as grain and
cotton and in manufactures, the total amount
ing in value TO Sill. ,581. against S92253,S81
in August 1904. Imports also increased. amount
ing to a heavier total than ever before reported
in August. showing a gain over last year Of
more than 100000 The excess Of exports
over imports amounted in value to 81. 627, OBJ,
compared with an excess in the corresponding
period in the preceding year of $4.516013 and
81 397 1876 in 1903. For the eight months ended
August 81 there was an excess of exports over
imports to the amount Of $196,007,21 In the
same time there was excess Of exports OF gold
from the United States Of $16.565,392. and an
excess of exports of silver of S13,47S,31S. The
large balance on trade account was offset by
other factors which govern the foreign exchange
rnarket-factors too well known to need ex-
PLANTATION in this coumn-but at the moment
exchange is running in favor Of this country.
and it is not at all unlikely that large shipments
of gold will be made 10 this side in the imme-
date future.
Call money was f1rmer in the week while
there was more tension in the time department
of the market Money lent for sixty days or any
Intervening maturity at this particular season
is subject TO the same influences as call money,
since il is embraced in the period covered by the
extensive requirements for handling the crops.
Therefore, as the demand from the crop regions
for cash has expanded, sixty and thirty day
money has developed a f1rnler tendency as well
as call money, but the rates for extended inter-
walls have not been affected. and there is little
chance of any material change The presump-
ton is that the importation of gold will afford
protection against a squeeze in money, If other
measures adopted by the financial interests
should prove inadequate Ordinarily low bank
reserves throughout the country at the begin
ming of the crop handling period would excite
alarm and most likely precipitate a disturb
ance in the loan market, but no apprehension is
now evinced, and up to the present time the
equilibrium Of the money market has been as
we'll maintained as II was last year, when the
banks held a large surplus of funds. The none
tary situation will be most interesting in the
next five or six weeks when the bulk of the
money required for financing the crops will
have to be provided, but the closing months If |
the year will furnish equal interest. as in that
time there undoubtedly will be fiscal events of
considerable consequence Including probably
new offerings of bonds by Japan and Russia,
and the fotation of miscellaneous securities by
domestic railroad and Industrial corporations. !
No extensive offerings Of commercial paper are
looked for until after the turn Of the year, when
the money market almost inevitably develops
ease The needs Of merchants and manufact
urers were very generally covered in July for
the balance of the year.
In the last two weeks the clearing house banks
have reduced their loans over SJ0000000 This |
operation has materially strengthened the
financial situation. particularly in view Of the
fact that in the same time the banks have lost
over 81 600 600 in cash OF course, the re- |
duction in loans has served to decrease deposits
with the effect Of preventing the loss in cash !
seriously affecting the reserves above legal re-
uuirements The latter item. however. is ex- |
trenlelv small for this period of the year. Out |
side of money market considerations Wan |
Street found food for thought last week in a
number Of Developments notably in the matter !
OF the transfer of the control of the syndicate |
holdings of stock in the Cincinnati. Hamilton and !
Dayton Railway Company TO J. P. Morgan & |