New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-12-04
THE WEEK IN WALL STREET,

were heavy in volume on q movement or values
that showed many striking fluctuations, espe-
cially in the shares of the Southern iron COM
panies, American Smelling and in number
of other Industrial securities. In the early part
Of the week the tendency. rule was in the
direction of higher quotations. but toward the
end considerable weakness developed, owing in
great part to the advance in the rate for call
money. The general operations OF the week diff
fered little from those Of the recent preceding
weeks. the larger speculative interests again
being in control of the market, while there was
a further increase in the amount of commission
house business. particularly in the industrial
shares which such prominent features of
the speculation. Various indications Of nanipu-
lation were presented in the of trading,
but the fact that some of the powerful manipu-
lators were actively at work apparently did not
cause any alarm the part of the small trad
ers whose transactions were based insignia
cant amounts of borrowed money. There was
great amount Of actual investment buying, FOR
| the good reason that investors found prices in
the greater number OF issues well above the level
that would permit an attractive income the
/ purchase. Doubtless persons who have money
to invest prefer at this time to keep their funds
/ in the trust companies or other institutions
! which pay interest on deposits, in the expecta-
| ton that at no remote period investment securi-
i ties will be quoted at a attractive level
i from the buyers point of view. Perhaps the
most encouraging feature of the week in Wall
/ Street was the development of a more cautious
! attitude among spectators, noted in the
! operations at the close of the week
| The current position of the stock market APP
parently is extremely satisfactory to the i'm
portant speculative and investment interests
who for many months have been opera ting to
bring about higher level for securities values
While in the case of a. great many issues quota
lions measure the actual worth of stocks
based on their investment return. the majority
of people in Wall Street believe that prices
will sell higher owing to the extraordinary con-
ditions prevailing in the business world and the
great wealth of the men who are adding to the
bull side of the market Nevertheless. there are
some people who freely advance the opinion that
the market has reached a point where the
ordinary commission house trader ought to OBJ
serve great caution in buying stocks at prevail
ing figures. as even in a big bull market there
are periods when sharp reactions take place.
While there is absolutely nothing in the general
position of affairs affecting adversely the in
trinsic worth of American investment securities,
1t should be borne in mind that quotations for
stocks have been advancing for many weeks
without an important setback and that this be-
ing the fact the chances are in favor of the de-
velopment of reaction which may cause con-
siderable injury to the people who trust to small
margins in their Stock Exchange transactions.
It is not all unlikely that eventually prices
Will sell very much higher. but in the mean time
there may be periods of distress for the little
men" The larger operators doubtless would
not become alarmed if there should be sharp
decline in prices; indeed, they probably would
welcome such movement, it would enable
them to add to their holdings at prices which
would bring to them large profits. 1t is gener-
ally believed that among the high grade issues
Canadian Pacific, St Paul and Union Pacific
will go to far better figures while it is thought |
that among the low priced stocks Chicago Great
Western, Colorado and Southern and Missouri |
Kansas and Texas will be feeders of the mar
ket in the course of the next six months
While commercial bills are appearing in the |
foreign exchange market in only moderate num- /
Der. the demand from remitters for bankers |
bills IS at the same time rather light, so that |
there is an absence of tension in exchange from
conditions in the exchange market itself The
Indebtedness Of the United States to Europe on |
exchange account is extremely heavy but that is |
a fact that IN the existing circumstances counts
for nothing. 1t is a question, indeed if it does |
not, paradoxical as it may seem, actually exert
influence toward relaxation. Money rates |
have receded in Europe to such an extent that !,
borrowers in the United States are impelled |
to Increase their employment of European CAPT
tai, which means further emission of so-caIled |
finance bills, with naturally depressing effect |
on the exchange market. In the last fortnight |
there has been considerable decline in ex- |
change, and particularly in the last week the |
downward trend has been pronounced. The /
chief cause for the descent of exchange is found |
not in affairs this side OF the Atlantic but |
in the growing of money in Europe. While /
the fall in money rates abroad has been more
or less retarded by events in Russia the supply |
of money the other side is much in excess
OF needs that it yields irresistible force in
driving down rates The postponement of the
new Russian loan until January or February. or
perhaps even later, leaves rather protracted
interval of inadequate use for the money which
had been accumulated in preparation for the
Russian loan. When finally this loan is foated
money will probably be very cheap the world
over, and the handling of the loan will be very
simple matter.
notwithstanding the extensive Indebtedness Of
the United States to Europe, as represented BY
finance bills put forth here in the spring and
summer, and also more recently. Europe Is will
ing, If not DESTROYS. of having the obligation
increased, for thereby. it would utilize what |
might otherwise be idle money. With a return |
of cash from the crop regions and flow of !
currency from promiscuous interior points TO
the money centres there soon may be no neces-
sty for further borrowing OF European capital
but 1t is not improbable that the bulk of the
European debts maturing this month and like
wise in the forepart of next month will he re-
newed sufficiently to carry them I'D 10 the neriod
when minimum rates for money are expected to |
prevail in the United States as well as in En-
rope. OF course If rates in Europe hold ner
sstently below those in the United States loans
will continue indefinitely to be effected in Eu-