New-York tribune., 1905-03-06
THE WEEK IN WALL STREET.


for q reaction. AS a consequence of this selling
the health OF the speculative situation was
vastly improved. the bull side Of the market was
strengthened. and the outlook for a further ad-
vance in quotations was made materially more
promising. There were no developments in the
week affecting adversely the actual value of in
TeStn1ent securities. There were no indications
81 the world of money and business Of any
change in direction that might alarm invest
ors, while there no evidence pointing toward
important selling by the interests who for so
long a period have been supporting the bull
market. AS matter of fact, the leading men
;n the Street. while advising caution in buying
stocks on margins at present prices, do not hesi-
tate to declare their confident belief that quota
fions for securities will to still higher fig
than those now current in the present year
under the influence of the remarkably favorable
position OF affairs in this country as regards
money. business and politics. From this. how
ever. the small trader who is not we'll secured by
ectusl cash should not rush madly into the mar
ket In the confident expectation that purchases
mad at the prevailing level will be absolutely
safe marginal transactions merely because it is
the belief Of conservative observers that quota
tions will go higher. The market has reached a
point in its upward course where reactions may
be looked for. as, for instance. such setback as
developed in last Tuesdays market
The advance fn values since the first Of jan
uary however has not been so large on the
sverage as many people imagine. while, as COM
pared with the high prices recorded last fall
there are few shares that show substantial
gains with a number of issues actually selling
under the tor figures Of 1904 This goes TO prove
that the bull market of the current year has
progressed along healthful lines, and that at the
moment the speculative position is not honey
oombed with weak accounts or that the market
IS in a condition suggesting underlying weak
ness. IN some cases where special causes have
been the motive <or speculation as in Union Pa
oihc, New-York Central and the Southern iron
shares. advances as compared with the first OF
the year and with the high points in the last
year. have been considerable. but taking the list
rs whole there has been nothing extraordinary
IN the price appreciation recorded. Taking last
weeks high prices, compared with their best
figures Of last fall, Atchson shows gain Of 1%,
Baltimore and Ohio gain Of 5, Canadian Pa
cfhc gain of sly, St Paul gain of 39s. Erie
q gain of 67x Illinois Central a gain of rs New
York Central gain of 1917, Ontario and West
q gain of rs. Pennsylvania gain of 5a4.
Reading gain Of 141s Southern Pacific a gain
OF 38s, and Union Pacific a gain Of 1885. Brook
lyn Rapid Transit Chicago Great Western,
Louisville and Nashville, Missouri Pacific. Rock
Island and Southern Railway show losses of
from 20 points from their high prices of last
year.
n the industrial list of the active issues, Anal
gamated Copper. American Sugar Refining, Col
oralo Fuel and Iron and Peoples Gas are SELL
ing considera bly, under their best quotations Of
the bull market Of last autumn, while the iron
and steel securities show substantial improve
ment, except United States Steel preferred which
at its best price last week was only "a better
than in 1904. Of course. in this comparison it
should be borne in mind that the advance in
eludes the recovery from the low points made
IN the decline that took place early in Decem-
Der Some securities are selling above level
mat is warranted by their dividend yield while
others are still under the point suggested nv
their value investments The former factor
however, VIII receive little attention as long as
money remains easy and Wall Street and the
country IN general are in the speculative mood
Whlle the fact that there are some shares that
are not quoted above a conservative invest
ment level will encourage particuIar ac+iri+,. :,
Such Issues II is quite likely that MANY of the
oi'eap priced non-dividend paying issues will
move 10 much higher level as Erie for in
stance while II is probable that Union Pacific
southern Pacific, Canadian Pacific. the 500"
shares and Reading Will continue to he roarLe.
features OI
me comparison Of prices Just made certainly
ooes not warrant the talk that is heard ", wan,
a cO "a in
'ie current year has been advancing ar foo
rapid a pace, and that quotations oro 80.
points ahead of the high records or +h -,
campaign of the last year AS stated ~ .h
Aist paragraph OF this review the bull snAcuIa
uoh mas gone far enough to suggest the probe-
Diii's OF sharp reactions and the danger of on
aliHs Oh small margins, but careful survey
VI tue present speculative position and the price
level now prevailing ought not to encourage the
he IVs,
Bull conclusions based on current conditions
may, Of course, not be borne out by the fu,,,ro
movement of values, there is always a possi-
bility Of upset in the specuIa+i,,a ,,,arl,a. ..
an unexpected time but the fact remains ,,e,.ar
theless. that conditions affecting speculation and
ue intrinsic worth Of securities all point toward
lurther appreciation in the greater number of
shaIes IN the present year. Leaving aside the
FACTORS that are adding real merit to investment
securities. # is well to bear in mind that tho
plans of the men who control the railway and
nanking facilities of the United States reouire
Tor tnelr development strong market for stocks
ana Dohos After a long period of advancing
Vaia@s the time will come when a long decline
VIII set IN but the present course of speculation
ana the character Of the forces behind the mar
ket do not suggest that the beginning of sucb
decline is near at hand
zig IRON consumption is Increasing er.e+ar
Ac'iVlty is developing in the steel trade tho
Soaoltlon or winter wheat is pror,is,re +t
are MAKING enormous purchases Of
4P.iie"' ne" HE is noticed in the cotton
1uustS' railroad earnings generally
arc satsi ifctory, bank clearings are large o,,
congress mas adjourned. Here are a fe1 e. e.
Tors or the greatest encouragenent : tooto-.
that more than offset the nosq,b,,,,, -. =,
rates Tor money influence in aNec,,n ~,
course OF speculation on the Stock Exctao