New-York tribune., 1905-03-27
BULL ELEMENT
THE WEEK IN WALL STREET.


houses in Wall Street satisfied that the stock
,,,a-ket Is not I'm a dangerous speculative posi-
ton and that conditions in the money ana puSSll-
ness world warrant still further Improvement IN
quotations The reaction that culrnnated III
Thursdays market improved the speculative
situation by eliminating many weak accounts
and by bringing into the market many ne" guy
ers of substantial means-buyers VINO We're coii-
WINGED that much better quotations than any so
far recorded would be reached by the greater
number of securities in the current year. Inc
manner in which values recovered in the closing
davs Of the week suggested the danger OF opera
tions on the short side. and presented adequate
reason for the belief that the large speculative
pools and individual operators have their posi-
ton more strongly intrenched than at any Tune
in the last few months particularly m the shares
that already have enjoyed material enhance
rnent To many observers the present Level ap-
pears high but consideration of this character
does not appeal to the men who are IN the
market TO take advantage of conditions that
tbev believe warrant the biggest bull specula-
ton in the history of the Stock Exchange. Ile
bulls certainly have about everything IN lher
favor and the fact that many shares are selhhg
OF a level which means only a small investment
return does not interfere with operations ior
higher quotations. There are, however, nunnoer
of issues that are entitled TO sell higher on their
found among the Industrial securities and low
priced railways.
With the iron and steel trade in its present
strong position and with every indication that
prosperity will continue in this line OF the
country's Industries for many months TO come
there is no reason why the iron and steel shares
should not move to a higher level There IS
no good reason why the railway equipment
shares should not sell at better figures While
Haa old HOff fha
This kind of securities ought to appeal to oper-
.a-ors in the stock market, especially as prices
for the various issues have not enjoyed improve
rent nroportionate TO their increase in intrinsic
worth in the last six months, while speculation
en- them has been on much smaller and quleter
scale than In the railroad stocks In the IaSI
-veelIs market there were indications that the
ind,lstrials were being absorbed by substantial
,n,eres+s and if would not surprise careful OBJ
servers 10 see an important movement through
ort this department of the market in the cur
,o-+ u,aet. Among the railway shares higher
nrsces are expected for st. Paul. Union Pacific:
Nrewvorl, Central Canadian Pacific, the Gould
shares. and. in fact for nearly every issue on
fhe list OF the Gould stocks st. Louis SOUTH
II western preferred is being taken by an excellent
class of buyers, many Of the purchases belng
for the account Of people who are in position
- ba well informed of the probable course OF
western property is steadily forging ahead as
large money maker, owing 10 the Improvement
On the company's facilities and the rapid ex-
mansion of the industries in the section of the
countrv served by the company's lines, while all
of the roads in the South and Southwest are
attractive propositions for investment and spec
ulative consideration.
Increasing interest among investors IN LONDON
and New-York in the shares of Canadian enter
prises is one of the current features OF the Sc
curfties markets that is attracting much atten-
ton to the railways and other corporations Of
The Dominion. In London there has been an ac-
tive demand for the shares of the Hudson's Bay
Company the oldest corporation in North Amer
sca. and for Canadian Pacific stock, the demand
for the latter also being important factor in
the local market. where it is being absorbed by
particularly strong interests. The idea that
Canadian Pacific win sell higher on its merits
is quite general in Wall Street circles. The fact
that the company has paid in dividends in the
last two years more than any other railroad
company dividends including "rightsD, that the
value Of the companys land holdings is con-
stantly appreciating and that the price of the
security is below the quotations Of most other
high grade securities ought naturally to i'm
prove the position Of the stock on the Stock Ex-
change. In Baltimore and Ohio there appears
TO be good accumulation. buying evidently be-
ing based on the improving earnings of the COM
pany and on the theory that the company's divi-
dend may be increased. Regarding the latter it
may be just as well not to place too much con-
fdence in Street reports. as there is good rea-
son for the idea that the company's directors
will not decide to make change in the divi-
dend at the next dividend period. This COM
pany is still spending a large amount of money
on betterments and improvements. a policy that
is adding intrinsic value to the companys Sc
curities and which eventually will be reflected
in larger returns TO the stockholders The idea
unfortunately is being fostered in many quar-
ters that the railroads Of the United States are
about TO make wholesale increases in dividends
something. however. of which there is not the
slightest chance. In certain cases dividends
will be increased and stocks that have not been
receiving dividends will be placed in the invest
i1lent column. but in the majority of instances
directors will have no legitimate reason to make
larger distributions to the shareholders.
Money market conditions continue satisfac-
tory to the operator in securities, and despite
The fact that bank reserves are at a low point
mere Is no probability of disturbance at this
centre Ihere is 10 scarcity of funds in the
country while the foreign exchange market is
IN position that viii serve to prevent exorbi-
tent rates for loans. In the last week there was
Dig decline IN sterling that carried the market
70 point near the gold importing level and il
IS quite probable that engagements of the metal
lor Shipment TO this country VIII be negotiated
IA tne near future. Money is higher in this city
than II is IN the foreign markets and as The
tendency OF money is 10 move TO the centre
Wnefe IL can be most profitably employed II IS
easy TO see why there is reason for uneasi-
ness over the position of the loan market in
New-fork- The foreign demand for American
secur1tles is growing, instance of which was
presented isst week in the taking for foreign
account or large block OF the American Tele-
phone bonds which were offered In the T2oeto,,