New-York tribune., 1905-01-02
THE WEEK IN WALL STREET.

quotations. Notwithstanding a brief period or
weakness in Fridays and Saturdays operations
speculative sentiment remained bullish. and az
the close OF the year the Wall Street community
appeared to be satisfied over the outlook for
securities values in 1905 the impression being
quite general that values would reach better fig
ures in the new year. notwithstanding the threat
OF AIr. Lawson Of Boston. to continue TO wage
active warfare against his pet aversions, tho
'frenzied hnanciers" and the system" 1t is
difficult TO see why any holder of American in
Vestment securities should be alarmed regarding
fhe value OF his security possessions because OF
the warfare between the Standard OIL interests
and Ar. Lawson inasmuch as the fight between
Mr.. Lawson on the one side and the Standard
on people the other has no bearing on the
commercial and financial prosperity of the
United States, nor has IT the power Of influence
30 upset the~1ntrinsic values of American invest
znsntE. In 1905 the railroads viii continue to
make money, exports Of merchandise Will con-
finuo TO move IN volume. the crops will grow,
and money will continue in circulation despite
manipulation in the stock market and the vocal
gymnastics of the Boston frenzy flrer. In the
week just closed there was excellent invest
-nsnt demand throughout the list. both in bonds
and stocks. with every indication of a continu-
snce in the new year of heavy purchases Of ell
che nrst class securities by substantial interests.
Many favorable developments marked the
course OF Wall Street affairs in the year. and
according to current signs of the times the ex-
ransion IN the country's industries. the in
creased demand for securities and the ease in
money will be leading factors in the new year.
notwithstanding the unfavorable forecasts that
"a few poorly informed observers are making.
II tie movement OF Wall Street affairs in the
aase six months may be taken as a forecast Of
the stock and money markets in 1905 the own
e-s os American securities will find their hold
angs enhanced both in actual and market values.
while the merchant and the manufacturer and
ali interests that dependent on the coun-
1rT~s credit facilities for the enlargement OF
fhesr business will be able TO secure all the
oo-nmodation they desire at rates that Will
prove no burden
While the transactions in the securities
2et in the early part of the year were con-
sned 70 small totals trading in the second half
became extremely active, and as a consequence
the entire operations for the year were well In
exoess Of those in the preceding year. about
equal 10 those OF 1902. but well under the record
breaking figures of 1901 In many respects the
year Of 1904 was one of the most remarkable
ever witnessed in Wall Street. both as regards
the dealings in the Stock Exchange and the
movement Of the money market
Never before in the history Of the country
did money rates rule at such low level for
so long period Of time as recorded in the last
year, N the greater part OF the twelve months
call money ranging from ] to 2la per cent, with
the highest rate for the year at 6 per cent in
January, and the highest rate for the last week
at per cent, the latter quotation being re-
s1arkably low, compared with many preceding
corresponding periods. The fact that there was
no disturbance in money rates in the year. de-
spite gold exports in excess OF imports to the
extent Of over 93.O0o,O0O the Panama Canal
payment. the financing of railroad loans which
amounted TO over SsO0OO0OOO. and the pay
nents Of enormous July interest and prepara-
tions for the January disbursements. supplies
an eloquent tribute 10 the remarkable strength
and stability Of financial conditions in the
United States, and it ought 10 suggest to people
who uneasy over the outlook the remote
possibility Of any material disturbance in hnan-
cial affairs in the year. Time money and
commercial paper were also quoted at low fig
ures throughout the year. and at the close there
was no immediate prospect OF material
change in rates in the first part of 1905
The highest prices for stocks were made in
December when the leading active issues sold
at an average price OF 1916. compared with
sow point Of 1856 recorded in May and 1880.
the high point in the bull market of 1902 The
advance IN prices IN 1901 ran from the early
summer until December 6. practically without.
interruption. and. although sharp downward
movements reported on December and
IL the tendency thereafter generally was tow
ard Improvement and, a consequence clos
ing figures IN Saturdays market were not far
from the best of the year. While prices ad-
fvanced 81 the stock market, the quotations in
al other directions moved toward a higher level
nearly ell Of the principal commodities selling
az their highest figures record. Wheat for
snstance sold from 20 cents to 80 cents a bushel
above the high record Of the preceding year;
flour was quoted fully dollar q barrel higher
and other cereals sold up in proportion. Meat
advanced; coffee advanced; also sugar.
Food products in general were high; manu-
featured products began to improve in the sec
ond half Of the year and pig iron sold the
close ofylhe year about 40 per cent above its low
level. while iron and steel products increased
sn price fully % per cent. The fact that prices
OF commodities. stocks and bonds are under
going q readJustment reflects the fact that
sumption throughout the world is still ahead Of
production. What the effect Of the increased
cost OF living viii exert on the individual and
the corporation yet remains to be seen, but one
thing is apparently quite certain, and it is that
higher prices in all markets have come TO stay
sust as long the production OF gold increases
The enormous increase in the worlds wealth.
as reflected in the growing output of the mines.
bears a relation 10 the increase in prices for
commodities manufactured articles and securi-
.ies that must be realized by all students Of
nouic topics OF course, far securities
are concerned it may be said that in many
cases market quotations fully measure the in
crease that is taking place in actual invest
rnent value, but, OF course this consideration
VIII count for little if money remains easy and
AZ the operations Of powerful financial interests
require higher prices for stocks for the purpose
he op xrbic