New-York tribune., 1905-04-10
THE FINANCIAL MARKETS.
INTERESTS STILL CONTROL STOCK 7
Money Situation FavOabeHeavy Railroad Earnings and Big
CTea1ngs Help Wall Street.
THE WEEK IN WALL STREET.


Increasing interest in the industrials is not at
all surprising. These shares represent the mer-
camille and manufacturing forces OF the nation,
and as remarkable expansion is now under way
n all lines OF trade price appreciation in the In
lustrial securities naturally is TO be expected.
nd especially as IN the greater number OF cases
he influence Of the bull market for the railroad
stocks has not been felt TO an important degree.
Cnited States Steel preferred crossed par in
Wednesdays market for the first time since 1901.
the Smelling issues m&de new high records, the
common advancing over Il points, while the
railway equipment issues also sold at their best
figures In the history OF the companies, Ameri-
csn Locomotive common. for instance, passing
80 on buying that was accompanied by well
founded belief that in the present year the
stockholders would receive return on their in
vestment. There is every reason for the ex-
pectation that the current bull market viii con-
anue. with the usual setbacks. and it is there
fore probable that the industrial shares will
move 10 a higher level under the lead Of the
iron and steel securities and the shares OF COM
panles in allied trades.
Expansion in the country's general industries
is reflected in heavy railroad earnings and bank
clearings. For the month of March gross earn
ings OF roads reporting showed a gain OF more
than II per cent as compared with the CORE
spending time in the preceding year. while bank
clearings were 90 per cent larger than in March.
1904. when there falling off Of i per cent
from 1903, the exhibit this year being the great
est ever recorded for any March in the history
OF the country. Stock market operations are
not important factors in these figures, as the
business on the Stock Exchange is cleared
through the Stock Exchange Clearing House, so
it viii therefore be seen that the enormous
clearings represent an actual growth in the
country's trade, involving naturally large inan-
cial transactions in this city. where the gain
in clearings for the month amounted to 81 peE
cent. Confidence Of the strongest sort prevails
in mercantile and financial circles, 10 better
evidence Of which is presented than in bank
clearings. and from all present indications this
confidence will continue TO make itself felt for
many months 10 come. Believing in the future
Of the country. having the firm conviction that
prosperity will prevail in all parts of the land
and that the intrinsic value of American in
vestment securities viii steadily appreciate
owners Of stocks and bonds know Of no reason
why they should part with their possessions,
while they md, even at present prices. ample
excuse for adding 10 their holdings Some stocks
are dear at prevailing quotations. This fact,
however, does not preclude them from going TO
a better level, but as there are a number Of
attractive investments still selling at figures
that make good return on the purchase, buyers
ought TO use considerable discrimination in their
market operations.
The demand for investment account comes
from ali parts of the country, rejecting the in
crease in the individual and corporate wealth
that has taken place IN the last few years and
the confidence Of capital in the present and
future condition OF money and business. Re
gardng the amount Of money in the country, it
is interesting 10 study the figures Of the gov
ernment's circulation statement for March, show
ing an increase in the last twelve months. out
side Of federal Treasury holdings OF S42 253, T60
the figures for the month presenting a small
decrease from February. In the last twenty
five years the amount Of money in circulation
in the United States mas increased 81, 744 347 99l
There is an ample supply of money in the coun-
Try for the requirements of rapidly expanding
tendency in business enterprises and for the re-
qurements Of the securities markets. and the
close relation that now exists between the New
York, Paris and London markets practically
precludes the chance OF disturbance in loans at
this centre, while the same thing may be said
Of the London and Paris money markets. Call
money is a trifle hrner, but there appears 10
be good supply available Tor the purposes Of
speculation, and the possibility of slightly higher
rates does not upset speculative sentiment; in
deed, SPECTATORS in their present mood will not
permit money market considerations to disturb
them. Foreign exchange was strong last week
IS compared with the preceding week under the
influence Of an active demand for remittance,
but foreign exchange bankers did not look for
protracted period Of frmness in the market.
end in many cases they advised the sale OF ex-
change for delivery in the fall. when it is be-
heyed unusually low rates viii rule
The general outlook for money is excellent
and at the moment there is no factor in the situ-
alton that suggests the possibility OF high rates
in the rest Of the fiscal year save, perhaps,
temporary advances. Last week this centre
gained currency on the movement with the in
terror. and from on il is likely that the liow
of money VIII be il favor of New-Yorl and as
consequence the stock market bulls will feel
Inclined % contine their efforts in the direction
of higher prices for securities. especially as the
public appetite for speculation is growing so
rorscious. 1t is not improbable that such issues
as Union Pacific. St Paul. New-York Central
United States Steel shares. Reading. Rock ISL
and and Canadian Pacific viii be among the
eaders in any advance that may take place.
put in a period Of bull activity the majority of
public traders seldom care what they buy lust
as long as prices advance. The conservative
public buyers. however, are placing their money
the hrst class issues, buying on the merits
u the security rather than on tips" and cyl
sence Of bull manipulation The man who has
made up his mind that he will be able 10 make
ais fortune il the present stock market by buy-
ng any cid thing a small margin doubtless
VII lose his money, Just as thousands Of traders
- similar calibTe have done in the past. and
Tor the benefit OF the little" trader The advice
given 10 stay out Of the market. unless The
margin supplied is large enough TO withstand
sudden reactions In big bull markets big pass
lng declines are apt to develop. and while the
general list OF securities ry,doubts51,. ,,,1l i.