New-York tribune., 1905-12-12

will not last for any length of time, the banks
will not go into bankruptcy and the general
business situation in the country will not be
adversely affected by the temporary shortness
of money at this centre. The most important
development in the foreign money situation yes
terday was the advance by the Imperial Bank
of Germany in its discount rate to per cent.
The demand for money in Berlin is active while
at all the financial capitals there is an excellent
inquiry for funds. owing to the favorable gem
eral position of business abroad and to the de-
sire of many people to have funds in hand in
the event OF a financial panic IL Russia. The
advance in the Berlin bank rate served to check
business on the London Stock Exchange, as
well as on the Berlin Bourse. but the action of
the bank failed to bring about uneasness in
financial circles London discount rates
higher also tine open market rates in Berlin,
while exchange at the latter point London
declined Paris exchange London
changed. but i'll London there an advance
in the price of bar gold, The fluctuations in
the foreign money and exchange market. as
we'll as in the local market indicate q some
what abnormal money market situation, but
they do not suggest the probability of dis
turhance at the chief financial centres OF the
world.
Believing that the current conditions in money
will not last for any length OF time. and feeling
confident that the larger speculative interests
are well supplied with time funds. the commits
sion house traders-that is, the traders who
make the so-called public-are exhibiting
greater desire to buy stocks at present prices
and if this attitude the part of the public
continues much higher quotations for stocks and
bonds probably will be recorded. OF course. the
men who are not mbued with the speculative
mania look with distrust upon the present course
of securities trading. but it is not likely that
they will go short Of the market at prevailing
prices for the good reason that it has been
proved that the men who are responsible for
the present high figures are possessed of enor-
nous financial resources and are not willing to
end their bull campaign at this juncture. If
there should be acute trouble in the business
world the situation would change Immediately.
There is however. no indication of such . deve-
opment all factors underlying the Ccuntrys in
dustriaI activities resting on a more solid foun-
dation than was ever before recorded in the his
tory Of the country. Speculative conditions may
bring about passing setbacks in values. and in
movements of this character operators with
small margins back of their accounts may lose
their money. but in this connection it is inter
esting to note that commission houses are now
demanding large margins and that the greater
number of people who are operating the bull
side are we'll provided with funds. People who
ordinarily deal in small share lots on per cent
margins are not factors in the market even the
smaller houses which generally are willing TO
take all sorts of accounts, refusing to handle
buying operations unless they Endorsed by
substantial margins There are many securities
which are selling beyond their actual worth,
but this factor does not enter into Wall Streets
consideration at present. There are also a num-
Der of attractive issues which quoted below
their real worth. notably the low priced rail-
way shares, which so far have failed to enjoy
gain in proportion to the actual increase that has
taken place in the investment value of the COM
paniAs which they represent.