New-York tribune., 1905-07-03
THE WEEK IN WALL STREET.

tDe course OF u3ulnS on olOCh IACudii6S
last week. The commission house element was
In evidence on the bull side of the market, the
substantial speculative interests. including a
large number OF people who tied UP with
underwriting holdings, were actively engaged
in encouraging better quotations, while. a
rule. the board room traders were committed
TO the long account This enumeration of the
bull element may suggest TO some minds that
no one sold stocks. but for their information
let IL be known that there were usual. many
sellers-people who wise enough to ac-
csmulate securities at the bottom prices Of
the recent decline, also bear operators who be-
neved that after the rally from the low figures
of May the short side of the market presented
opportunities for successful operations against
the bulls. There is much difference of opinion
in Wall Street regarding the speculative out
look. although the majority of interests SEEM
ingly believe that quotations will go much
higher before an important decline develops
OF course, there many issues the market
prices of which fully measure the actual worth
Of the securities investments, but this fact
does not preclude the possibility of further
appreciation in quotations, particularly as
there is a vast amount of stocks and bonds be-
ing carried by underwriting syndicates. or
rather by the banks for them, which the f1nan-
cial interests anxious to distribute at
higher figures than those now current. Through
their ability to manipulate the money market
they may be able to keep rates for loan accom-
mediation at present figures long enough to at
tract an active public demand for securities.
While general conditions affecting the actual
value of investments most promising. the
strongest argument perhaps. in favor of buying
stocks at the current level is the fact that the
larger interests are tied up with securities which
they have made up their minds to market at
better quotations. The man who buys now,
however, should watch the signs closely for
symptoms of liquidation by the "big" men. In
addition to the situation just outlined. there
other factors making for enthusiasm on the
bull side of speculation, notably the recent in
crease in the Reading dividend and the we'll
founded expectation OF similar announcements
affecting Baltimore and Ohio, Norfolk and
Western and number of other companies. Fa-
vorable changes in dividends naturally promote
cheerfulness in Wall Street. Larger dividends
indicate that the companies are prospering, that
the intrinsic worth of their securities is appre-
ciating and that the country through which the
companies operate is expanding in wealth and
commercial activity. AS per cent stock.
Reading is selling at a fair price invest
ment, which as yet cannot be called perma-
nent per cent ISSUE but traders. nevertheless.
paw
There are also number of traders and~banking
interests who believe that eventually Erie COM
mon Will sell high as if not higher than, Read
ing common basing their argument the fact
that the Erie company is trunk line road
with its own tracks from New-York TO Chicago,
with large miscellaneous traffic in addition to
its coal traffic and with the prospect Of some
day becoming the Eastern outlet for one of the
large Western companies. Readings chief in
come is derived from its coal. and it is well
known fact that the coal trade at times is
pauper.
Minneapolis. ST. Paul and sault Ste. Marie
common will, 1t is understood, be placed on
higher dividend basis this year, earnings in the
fiscal year being equivalent to over 13 per cent
on the common, and, as the stock is in light
supply the greater part being held by the Cana
dian Pacific and interests close to that COM
pany it is not wise to be short of it, In the last
week certain operators who thought they might
make money the short side of the security
were badly punished, and, as they still short
of a considerable amount of the stock, they are
endeavoring to influence the directors against
increasing the dividend. Canadian Pacific is also
closely held. and it is expected that it will be
among the leaders in any advance that may
take place in the course of the next few weeks
As the stock is per cent issue, selling under
otner SIareS OF no greater merit, there is good
reason for bull talk about its future. People who
hold Norfolk and Western and Baltimore and
Ohio predict great things for these two stocks,
and, as both issues to be placed on higher
dividends, the chances favor material advance
in their prices. European developments had
little effect on the local market in the last week
money market considerations were not much In
evidence, and the idea of any important set
back In prices at the moment was not tolerated
There have been developments of some i'm
portance In the international monetary situa-
ton. Exports of gold to Europe have begun,
and indications point toward further shipments
or the metal in the course of the next few weeks
1t is quite evident that there is going to be
large need for gold in Europe in the balance
of the year, and. it is easier to obtain it in
the United States than in any other country in
the world, ii is easy to why the Paris de-
mand, in connection with financing Russia after
peace has been declared in the Far East, will
be met by shipments from New-York The
pecuniary requirements of Russia will be enor-
nous, and in supplying them it is thought a
series Of loans will be made extending over a
considerable period. Subscriptions to these
loans may and likely will be- invited in Berlin,
London and even New-York as we'll as In
Paris. but New-York will have to furnish gold
not only for its own commitments in connec-
tion with the loans, but also for those of Berlin
London and Paris. Gold is readily OBJ
tainable in New-York than elsewhere. because
premium has to be paid il. The price of
gold at New-York is always the same no mat
ter whether the demand Is large or small
commission of 40 cents per s., 900 worth Of gold,
however, is charged for fine bars supplied by
the United States Assay Office. these bars being
of pure gold. or gold that is as pure as prac-