New-York tribune., 1905-11-20
THE WEEK IN WALL STREET

by the selling of stocks for speculative account
and heavy liquidation of loans The high rate
did not last long enough to do any serious dam
age, and the speculative element
realized that money was coming to this centre
from various parts of the country to take ad-
vantage of the high quotation for loans there
was a scramble TO recover stocks sold. and as
consequence the losses made when money ad-
vanced were made UP before the close Of the
week, a number of issues rising to their best
figures on record. Money eased off TO per
cent on Friday, averaging for the week about
15 per cent It is too early to say whether or
not the period of high money rates is at an
end but the suggestion may be made that a
quieter speculation in securities will tend to
maintain rates at relatively easy level. No
common sense operator in stocks would care to
see a speculative riot at this period on the
Stock Exchange but unfortunately there were
indications last week in the movements in
number of issues Of conditions Of the most un-
healthful character. Nevertheless, the men who
are chiefly responsible for the advance that so
far has taken place are confident that they will
be able to control the market in a way that will
prevent a big smash in values and actually
bring about much higher range of quotations.
Of course conditions in the business world are
unusually favorable for bull operations in secur-
lCleS 1nen IheTe Is no large puDllC III
the market securities being in strong hands,
while there is nothing in the general situation
that encourages bear activity. Prices for all
things for which there is market are high and
the chances are that the end is not yet in sight.
There have been number of unfavorable de-
velopments in the last few. months which in
ordinary times would induce heavy selling in the
securities market, but their effect the specu-
lation Of the current year has been Insignificant,
prices refusing to go down, except under the
influence Of operations for a quick turn the
bear side. and traders refusing to believe that
anything threatens the speculative situation
The life insurance developments have failed as
adverse market factors. high rates for money
have had only passing influence. the disturb
ance in Russia has hardly been noticed by Wall
Street spectators, and the mixed and uncertain
position of the foreign markets and of the in
ternationaI monetary situation has not discon-
certed the people who have been successfully
working for higher prices for stocks. All Of this
goes to prove that the Wall Street position has
been unusually strong this fall. that stocks are
not in the hands of small marginal traders and
that the biggest financial interests In the coun-
try are behind the market. These men have con-
Quoted their operations on the theory that the
big crops. the prosperity in the iron and steel
trade, the expansion in general business and the
indications that the country will enjoy a long
period of prosperity warrant the Improvement
that so far has taken place in values, and that,
even though the splendid position OF business
throughout the land may have been fully meas
ured by the advance that has been recorded on
the Stock Exchange, they are powerful enough
financially to maintain prices at high level.
irrespective of passing unfavorable develop
ments. How long, however, can such situation
last? VIII it be possible for the SPECTATORS to
od Ind W Arc NJ oP
the wiser interests now taking advantage of the
present level to tighten their loads? Stocks will
not move up all the time, despite conditions in
the business world, and, of course, one of these
days there VIII be readjustment Of values to
a lower range, but apparently not at present.
The current market cannot be judged by prec-
edent. Conditions affecting the actual worth
of securities and factors governing the specu-
lative situation are far different from anything
Of the kind in the past and it therefore is not
surprising that there are so many men IN all
parts Of the country who believe that the mar
kets in general will enjoy a long period of good
prices The theory is attractive, but prices for
nearly everything already are high, and while
speculation doubtless will carry them higher. it
may be well not to place too much confidence in
the idea that the current wave of speculation
Will run to a point where all operators in
stocks and commodities will be able to revel in
dazzling riches. Authorities on the money mar
l1et are not yet satisfied that there will not be
another pinch in rates before the end of the
year, but they apparently agreed over the
outlook for the year, which seems to indt-
cate easy quotations for loans The local banks
have shipped more money to the interior in the
current fall than ever before recorded for
responding period, the net cash loss to the banks
amounting to nearly $1O9,O00OOO, and it is
4Na+ lara 0orf of
to New-York at no remote time. Spectators
are looking forward to such a development, now
that the Secretary of the Treasury has refused
to throw money into Wall Street for stock mar
ket purposes There is more money in the coun
try than ever reported before, reflection Of
which was presented in the local loan market
last week, when following the advance in
money rates offerings from all sorts of institu-
tions in all parts of the United States almost
flooded Wall Street.
Once more the situation OF foreign exchange
has undergone complete change. week ago
rates for sterling were lowering around the gold
import point, whereas quotations
the level at which shipments Of the metal from
this side of the Atlantic could be undertaken at
"A profit In recent weeks movements in the
foreign exchange market have been kaleido-
scopic and also contradictory. What the next
development will be is hard to determine. There
is strong inquiry for the precious metal in the
European capitals. and ii may come to pass that
the United States viii be called on before long
TO supply foreign needs, particularly in the event
OF the establishment of internal peace in Rus
sia & factor which of course will be followed
by the placing of a large Russian loan. In con-
nectfon with the foreign exchange situation it
is interesting to note that in the month OF Oc-
tober the foreign commerce OF this country,
chr