New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-01
THE WEEK IN WALL STREET.


weeks stock market on decline in values that
carried prices many points under the best fig
ures of the year. While Stock Exchange values
cr11mbled while speculative accounts were
liouidated and while semi-demoralzation deVeI-
oped there were factors in the SITUATION tnal
warranted the sale OF investment hoIdlhSS tHe
trouble on the Exchange being in no way re-
Election of conditions affecting the intrinsic
worth of American investment securities In
view OF the long period of advancing values en-
loved lov the stock market declines at this time
are not surprising nor are they apt 10 Iead 10
any serious disturbance in the financial com
1nunity the losses sustained having fallen on
people whose operations are not identified with
the general course of affairs that govern money
and business. The fact that a number of pass
ing adverse factors developed at time when
the market ripe for reaction naturally
tended to intensity the weakness on the Stock
Exchange. and to create the impression in spec
ulatiya circles that the bull market had run its
course, for the present at least, although this
theory considerably modified at the close
Of the week, when II was found that the de-
cline had not brought to light single adverse
feature bearing on the country's trade and in
dustry The collapse in the wheat market the
Milwaukee bank looting, the developments in
connection with the Equitable Life affair I'M
easiness abroad over the Far Eastern situation,
the possibility of strained relations between
Germany and France on account OF Morocco and
the resignation of Mr.. Gould from the director
ate of the Union Pacific Company are not good
reasons for the sale of investment issues. al
though they furnish a for temporary
weakness IN prices
Many Of the bull pools have liquidated their
accounts, and many weak traders have been
driven from the market, the attending result
Of strong people and the creation of a largo
short interest factors that ought soon to he &c
fected in rising level of values With last
weeks decline the market has reached point
from 10 TO IS per cent under the high record
of the current year, and a consequence quo
tations now at a range that ought to at
tract an active public demand. especially for
the shares that are solid dividend payers, as,
for instance ST. Paul, New-York Central. Penn
sylvaria, United States Steel preferred and
Canadian Pacific. The latter stock is selling at
q level that returns to the investor a tr1he over
j per cent, and for this reason it is especially
attractive, a fact that apparently is apprecl-
ated by careful buyers in last weeks mar
ket the issue was taken by substantial Local.
London and Montreal interests. AS Tar as
Union Pacific is concerned, there IS an unWar-
ranted amount of bear opinion on the sIocA 'llo
traders idea that the settlement OF the NORTH
crn Securities case-after the plans OF the MOT
gan-Hul element and the competition the Union
Pacific will be forced to meet from the douloS
Western Pacific line which Will paraHe4 lli9
Central Pacific of the Union Pacific systenn-"lII
do material damage to the Union Pacific shares
as investments, not being supported py coIH-
mon sense view of the situation If Union IA
cihc Is to remain on a per cent basis It's pres
ont price is high enough, but the chances are
ten to one that the security eventually VIII pe
raised to a better dividend return
Fortunately for the general situation the spec
ulation in May wheat for higher prices has col
lansed and although the decline in the price OF
the option of over so cents from its best hg-
ure of the year has carried with 1t severe losses
10 many operators. including the defauItng NIL
veukee bank president the cereal is now quoted
at figure that will stimulate the eA-
mort demand, q factor OF prime Importance u
the financial welfare of the country. 1t Is re-
rnarkabIe fact that supposedly shrewd operators
endeavored to hold the wheat market at arthclal
quotations when all natural conditions war
rant.d a cheaper price for the cereal. and the
failure Of their plans receives sympathy from no
one who has the best interests OF the country
markets in mind. There is no occasion 10 coz
dole with the Chicago spectators who lost heaV-
i1,y in wheat and as a consequence were forced
to liuudate large lines of securities; indeed there
is reason for thanksgiving in the knowledge that
a reckless band Of speculative plungers has been
driven from the market. The outlook Tor the
winter wheat crop is unusually promising, while
spring planting begins under extremely favor
able auspioes. and therefore at this early stage
Of the crop year conditions are not in favor OF
bull activity in the cereal markets. Genera
conditions in the business world are uncommon
ly satisfactory, reflection of which is presented
in railway earnings bank cearngs and the last
quarterly report of the United States Steel Cor
poration, the last named showing for January,
February and March increase in net receipts
as compared with the corresponding period in
the preceding year of $9,S16,41O. In the month
Of March a new high record was established for
pig iron consumption. the gain as compared with
March last year amounting 10 4S0500 tons The
active consumption in March 100000 tons
SIS against TAI 800 tons in December, 1903, the
lowest point attained in the recent depression in
the iron and steel business.
In the last few months a large investment
demand has been satisfied, but it is not unlikely
that the decline that has taken place in the
stock market will be effective in attracting cap
ital 10 first class investment issues, both for
American and European account Abroad the
general position Of money and trade is sound,
and at he moment the only unfavora BILE feat
ures the uneesiness and uncertainty over
the possibility Of disturbing developments in
Morocco and the Far East While the factors
Of uncertainty are capable of troubling the Sc
curities markets Of the world, they are not bear
arguments on the actual worth of dividend
paying stocks and bonds. In this country the
money market presents evidence of a lack
of funds for speculative and business require
ments. and II is not responsible for the declin-
ing tendency OF prices on the Stock Exchange,
although it is conceivable that the money situa-