New-York tribune., 1905-08-21
THE WEEK IN WALL STREET.

corded in many securities last week. the ad-
vance being accompanied by predictions in weli
informed quarters that further improvement
would be made. despite the fact that quotations
in the greater number of active issues already
measured their value as investments. A num-
ber of unusually favorable factors have devel-
oped in the last six months. and Wall Street
is taking advantage of them to place stock
market prices on higher level. So far nothing
but success has attended the efforts of the
larger interests to advance quotations. and un-
less there should be some radically adverse
change In the situation governing money ana
business. of which there is now not the sight
est inkling, 1t is more than probable that the
wave Of bull enthusiasm will carry the gooo
and even the bad stocks to figures never before
reached in the history of the Stock Exchange.
This does not mean that there will be no reac-
tions. Indeed. good sized reaction is now over
due. and the bull position would be materially
strengthened by a decline. In the last few
weeks there has been quite an accumulation
of stocks by the so-called public representing
in most cases operations by people who are not
backed by large financial resources, and, as
consequence. commission accounts. in many in
stances. have become topheavy. and, therefore.
are in danger of collapse. The elimination of
accounts of this character, of course, would
carry with IT more or less loss among the small
Dealers but this is something that always oc-
in times of bull speculation, and it is
never regretted by the big" operators who.
after having sold their stocks TO the small men,
anxious to buy their holdings back at
cheaper prices All indications at the moment
point toward a gradually rising market among
the cheap class of securities, further spectacular
movements among the higher priced issues and
a day when there will be a sharp decline. to be
followed by further enhancement in values.
The prospects of bounteous crops, the growing
belief that there viii be no real disturbance in
the money market in the fall and the generally
favorable position of business throughout the
United States naturally furnish adequate excuse
for the current optimism in financial and spec
ulative circles. A canvass of the leading bank
ing houses in Wall Street which was made last
week disclosed the fact that all the substantial
interests were the bull side of the market.
These men know the inside of affairs affecting
the markets Of the world: they know of things
that are going of which the general public
has no information. and they are so we'll posted
as TO be able TO make an almost accurate fore
cast OF the happenings of the immediate future
When, therefore, men Of this character an
nounce that there will be no disturbance in the
money market and that stocks have not yet
reached the top II may be safe TO assume that
securities will move higher and that call money
Changes. of course, may come in the situation
that will require a modification of present op-
timistic views There are Ifs" in every outlook
that ought not TO be disregarded especially by
the public operators in stocks who know moth
ing about the game of speculation; but IT would
be a rash man, however, who at this juncture
would dare TO wager that a bear campaign on
the Stock Exchange could be SUCCESSFULLY under
taken. Tremendous power is vested in the big
fnanciers of Wall Street. These interests are
working for higher prices. and all the weight
Of their influence in money and in stocks will
be the side of the bull account for many
weeks to come. Their plans may involve sud
den setbacks in quotations. but barring unfore-
seen adverse developments it does not appear
likely that there will be any important shrink
age in values until the leaders Of the current
movement have successfully disposed Of their
holdings at the best prices of the year. This
sentiment prevails in the best informed quar-
ters of the Street
Foreign exchange houses in the United States
are said to have been arranging for larger
credits at London. also at Paris and Berlin
which means that they count on a continuance
Of the heavy demand for their own bills. These
bills are designated bankers bills. because
they are money orders, pure and simple whereas
commercial bills are drafts calling for payment
for products or goods exported. Bankers bills
represent borrowed foreign capital, and gen.
orally they are covered or paid off with CONNER
cial bills purchased by the exchange houses
from exporters for this purpose. When the sup
! ply Of commercial bills is inadequate gold has
! to be exported to the extent Of the deficiency.
Apparently it is the belief of the exchange
! houses that this years large harvests will ex-
! pand the country's exports sufficiently to pro-
vide cover not only for the immense amount of
/ bankers bills already issued. but also for the
great further amount that will be put out in the
next few weeks. Whether not their idea is cor
rect remains TO be seen but is certain that there
! will be a large exportable surplus from the new
wheat crop which not the case with last
years harvest, to say nothing Of big shipments
of corn and cotton The foreign trade position
in general promises to be favorable to the United
States in the remaining months of the current
| year, so that a vast amount of exchange in the
! form of commercial bills will be created that
will be available in effecting settlement on the
| bankers bills which have been and are to be is
sued In the last six months as many bankers
bills have been drawn for use in financial and
/ speculative operations for the purposes of
importers and other remitters. The bills thus
employed. which have come to be commonly
known as finance bills. have accomplished a val
liable end in preventing tension in the money
market Except for these bills money unques-
tionably would have ruled higher in the last few
weeks
According to the best informed men in the
financial community. 10 disturbance will develop
in the money market this fall. although higher
rates for call money expected. One of the
most prominent bankers in Wall Street said last
week that in his opinion call funds would not
go above per cent, and that every precaution
had been taken to prevent undue tension in