New-York tribune., 1905-06-19
THE FINANCIAL MARKETS.
TUGHT WEEKS TRADING IN SECURITIES.
Liquidation apparently Completed Railroad Earnings Increase
Outlook for Money
THE WEEK IN WALL STREET.

IN the general situation Affecting investment
values in the last week. stock HaFhet oe<-i.1sS
reached the nshtest totals OF the year, "Ia7
prfces moved within extremely narTo" nniA'S'
7u.tuations being so small that at times IL was
utterly impossible for the room traner 10 HiAns
even q scaIper's profit. especaaAy Win iie
stock transfer tax staring him IN Iae iaI0'
Dulness failed to attract IquidatloH- pu[ ZIG
average trader preferred to be short rather
than long of stocks. There is a large ana con
stantly growing short interest IN the STOCK
market and one Of these days. barring OF
course the development Of some radical adverse
change In the situation affecting the actual
worth of investment properties there VIII Do
mighty scramble on the part or the peafe "
get out Of their contracts Stocks are Ii sGoiis
hands. The recent liquidation was thorough
end apparently complete. and. as q consequence.
securities found their way into the strong
boxes Of men who never sell at a loss. current
stock market conditions do not favor the
theory that prices will move toward na1er2-
elly lower level, while there are many factors
IN the situation that encourage the belief thas
before the end OF the summer better range OF
quotations will be recorded, especially in tie
high grade Issues which are selling under thsiT
actual investment value Careful market
operators are taking advantage Of every set
back in values to accunplate securities, ana
stocks therefore are becoming more strongly IN
trenched in the hands Of people who VITA
not part with their holdings until prices move
many points above those now current
In the last week most favorable crop repoTs
was issued, official announcement was made OF
the efforts that were successfully made py the
President Of the United States to bring Japan
and Russia into q psace conference, an eXcei-
lent foreign trade statement put forth by
the government marked progress In the Equi-
table settlement made, railroad earnings
shored further material gains and all reports
from trade sources presented a heaithful situs-
ton n tie country's industries. yet the stock
r..eriket refGssd r. grow enthusiasts. There a~s
times when favorable developments fail 90 move
securities. and such times g rule are wit
messed in the early stages of the summer. The
public is bcthsring itself with other affairs than
speculation the substantial Wall Streef interests
are thinking of vacations uad The sports Incl
dent 20 holiday times. and result the stock
market Is left to the terder care Of handful
o. uIliuportant room traders VINO are not In
cliued 10 operate heavily ca either SIDE OF the
account per6iag the return TO The speculative
whirlpool of tia leaders and the investing pub
lie In e. few shares symptoms of activity were
recorded Fl the week, notably in AIla!satnatsd
Cog per- which was attacked by the so-1aI!so
Lay
was a quiet absorption OF such shares as Cana
dian Pacific Union Pacific and st. Paul. but the
general market presented few features Of In
rerest and a detailed report Of the transactions
would therefore he OF no interest or value The
outlook fer the next few weeks does not favor
much nlore activity than witnessed in the last
week but 1t is quite likely tLat advantage viii
be taken OF taa du.neSs BY fGrsee.ns dealers to
tuck away some II the bargains that are now
offering on the Stock Exchange.
4 chsnge of some consequences has been
wrought in the foreign exchsGge situation by
the prospect for comparatively re-
stricted domestic money supply in the
summer months. Maturing exchange IN
the form Of finance bills Is being re-
newed TO a larger extent than heretofore De-
cause it appears probable that in the eno THIS
course will prove more advantageous than If ths
exchange were TO be paid off. This kind Of ex-
change, as IS well known. was emitted literally
in the spring for use in the iotation of new
sec,,r5sies and in speculative dealings. The So
called finance bills were bills drawn by the ex-
change housas here their correspondents in
Europe principally IN London. but also TO a fair
extent IN Paris and Berlin. These btlis were lent
To foreigners who sold them for money. else
the exchange houses themselves sold the bills
and lent the proceeds In either case the out
come was the same. borrowers haG recourse 10
exchange because the facilities of the money
market were inadequate, and e. lae present tirne
vrhila there is no dangerous weakness in the po-
sition of money the situation is not bit i'm
nroved as compared with the period when the
exchange that is now falling due was put forth,
and furthermore the prospects do not encourage
the idea that rates for loans viii continue to
rrlle for any length of time at current low quo
+a+ions For another thing, the outlook favors
Arnosr money abroad which will have the effect
Of Increasing the cost of exchange in New-York-
Gold is being exported from the Pacific Coast to
ssnsn by the so-called triangular method. That
E. against the gold forwarded to Japan bills on
London are drawn exactly as bills were drawn
on London against the gold dispatched from
here to Paris last winter. It is quite probable
that in the course of the current year there
will be shipments Of the precious metal TO Eu-
rope. especially SIS Russia Will be bidder In the
markets Of the Old World for funds incident to
having the cost Of defeat in its war with Japan.
The current movement Of cash IN the United
States is SO small for this season Of the year that
it is exciting not a little comment This is due
in the first place to the locking up Of money in
loans and In the second place to the widespread
inclination TO keep currency holdings intact
far as practicable. Quieter speculation IN
curities. of course, has helped the money market
by tightening the requirements for FUNDS at the
chief financial centres but there has been little
important liquidation in ioans as yet. and that is
something that appears to be essential in order