New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-16
THE WEEK IN WALL STREET.

| measure the improvement that has taken pace
| in the position of the countrys industries. ana
| that further speculation for higher prices "lll
be fr,urht with danger 1t was pointed out In
this column last Tuesday that many OF the lead
! ing bankers in the financial community were
! onnosed to hull operations in the stock market
owing to the uncertainty over the course OF the
| money market in the balance of the year and
to the fact that continued speculation for the rise
at this time might strain the credit resources
Of the country to extent that might result
in serious disturbance, not only IN wall street
but throughout the business world, Al Wednes-
davis session of the American Bankers Con-
vention the vice president of the most lnpor-
tant bank In the United States made an eIo-
ouent address, in the course OF which ne po''Ieu
ont the great strength Of the Industrial position
in the country the wonderful expansion ulat
has been going on in all lines of trade IN the
last wear and the favorable prospects for fur-
thor rroeress But he made the reservation
that further progress might be made Impossible
If overspecuIation should develop in business
and stocks, and he warned Wall Street mat 10
promote bull market from the current leFei
of quotations would be unwise, II not poSlIlNeIy
dangerous These views. while ref1ecthS MI
yanderIip's personal ideas, also rehec'e" VIC
sentiment of the larger financial interests IN me
c+rae- and these interests should not be con
life insurance looters. The leading hnahclerS
Of Wall Street are not identified with tho Dig
enacr1a+i-a pools and syndicates whi''h are
s+raioine every nerve to maintain prices AT d
high level at a time when every rule OF caullol
suggests a practical suspension q Spe'"
Bankers Of repute VINO are not IN FAVOR u 'u''
sneculation at this period are not enoeaVoIinS -
bring about bear market, but they nave SEM
ont the warning that a further STRAIN Oh inc
money market from the speculative element VIZ
he followed by the wipng out of many speoula-
tive accounts Naturally the bank presidents
who nv the way, have more foresight thah 'he
z, s-,,c,,1a tors have wish to maintain sta
bi,,+, in wall Street and It is for this very pur-
nose that thew have in the last few days oeeh
preaching against reckless operations on 'he
Stock Exchange. OF course, they VIII not re-
cefve from the speculative DUH element '
credit for being sincere. 1t will be SAID lhd'
they are working to effect lower prices so lhaC
the Standard oil and other large nnanclal III
terests may load up with stocks at cheaper
nrices hut such things have been said before
without rufiing the even temperaments OF inc
able men who have in charge the money ana 'le
cre5it facilities which are used for the beneht
Of the people and the upbuilding of the entire
nations industries. There are other demands
for money than those of the Wall street specu-
Iators and when the bank reserves at the chler
financial centre of the country are low 1t IS
necessary TO consider the requirements of trade
before the needs Of the spectators. and this Is
what the bankers who are discouraging bull
speculation at present are thinking Of 1t is by
no means yet certain that there viii be a return
to- easy money rates until we'll after the turn
Of the year Indeed it IS more than likely that
quotations for loans win rule at a firm level
for several months to come, while it is possible
that in the last month of the year rates may
reach higher level than any so far recorded.
Bearing this possibility in mind the wise pub
lie trader in securities doubtless will not be-
come particularly enthusiastic over stocks, des-
pfte the invitation of the pools to in and
take their wares
The idea that there will be large importations
of gold this year is gradually being dtspeIled
Foreign exchange rates are well above the point
at which gold may be brought in at profit
and unless there should be an urgent necessity
for help from abroad it is not likely that ship
ments from Europe will be heavy in the bal
ance Of the year. Cotton exports last month
declined in value over $1OOO0,0OO as compared
with the corresponding month in the preceding
year and in the last few weeks few cotton bills
have come on the market. There has been for
some time more or less OF a deadlock between
the foreign buyers and the Southern owners of
cotton and as a consequence the exchange mar
ket has been deprived of supply OF blls at
time when such a supply is most needed. Fort
unately shipments of currency to the interior
are diminishing and before long there ought to
be a large return flow of money to'this centre,
especially if money rates remain at a sum leVel,
although the demand for funds in the West and
South in connection with trade expansion may
upset the theory that the money sent from here
ia holm finance the crops will come back in equal
volume. There appears to be belief IN bank
ing circles that there will be no disturbance IN
the money market if speculation Is al!oWed 10
outet down for a time, but If manipulation
should continue in stocks there might be some
unpleasant days in Wall Street, especially IN
Z.ew Of the fact that the demand for money
fdr financial and business operations is heavy
throughout the world Foreign discount rates
reflect this feature of the situation ,.,
In speculative circles 1t is SAD theIe IS it I
reason for all the current talk about caution be
cause il is argued. if there should be great
scarcitv of funds the Secretary of the treasury
would come to the relief of the market. 1t IS not
~ f,,ction Of the government to encourage
specuIatfon in Wall Street by lending ITS money
TO hold up the price of securities. II uere
should be financial panic the government
would do all in its power to avert disaster pLI
there is no reason to look forward 10 hldlcial
disturbance and there is nothing IN me c uIteL,l
situation that would justify the secretary >
Throwing money into Wall Street. Moreover, the
Fed Jral Treasury situation is not such as TO
-,orran+ +he belief that is now expressed in some
Quarters that the Secretary IS contemplating
nuttinl, into the New-York banks the govern
n,ent money withdrawn from them carrier IN the
car Government receipts are improving the in
crease so far in the current fiscal year amount
ing to over S1060000O, as compared with the
same neriod of 1901 but are government eX-
Denditures increasing, with the prospects or a
frrthdr increase when Congress gets down TO
work and while ihe indications point 10 an ex-
cess of receipts over expenditures TINS year 1t is
not likely that the present holdings of govern
mont funds in the banks of S5aVoOoO will be
added to.
or course there is no reason for pessimism
over the future Of the country, and If Wall
Street will only hold itself in check for time
it will have better chance to secure profits on
tim. will he TIID1 la f4VA IR