New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-02-05
THE WEEK IN WALL STREET.


in last weeks stock market. in the course OF
which many securities passed from weak TO
strong hands and prices declined to leVei
several points under the best quotations OF the
year The selling movement in the early part
OF the week followed by substantial re-
covery before the close but final quotations
were we'll under the highest figures OF 1906,
although above the low points recorded in Tues
days market. High prices far in 1906 for
the leading active railway issues We're made on
January 90, when an average price of 1888 was
established for twenty OF the chief railway
securities and from that time until last Tuesday
there was a decline to 1880, this quotation
being followed by recovery to above $50 Cor
responding declines We're recorded in the same
period in the industrial issues. In view OF the
great advance in the last few months the re-
cent setback in values not important, put
it was large enough to improve the technical
position OF speculation and TO attract many new
buyers to the market. 1t is believed. however.
that there may be a further reactionary period
in securities before active resumption OF the
upward movement develops. owing TO the fact
that number Of adverse factors recently have
arisen and TO the fact that there are still
number of overloaded speculative pools which
may have be lquidated.
According to the ideas of the most conserN4-
tive and best informed men in the Street the
day has arrived for extreme caution In stock
market operations especially the time is
approaching when there VIII be great uncertainty
the position of labor in the country; also
uncertainty over the position of the winter wheat
crop. II there should be widespread trouble this
year between employers and employees ana II
there should be unfavorable winter wheat
crop there might be considerable disturbance IN
the stock market as factors OF this character
always exert harmful influence on the market
value of securities. 1t may be too early 10
preach caution, and advice to bull operators to
move slowly at this juncture doubtless Will not
be thankfully received but the exercise Of COM
mon sense and the careful consideration Of the
possibilities of the future may prove profitable
at this particular season Of the year The larger
market interests not willing at present 10
admit that the prospect does not favor further
success on the bull side OF the market, and as
these interests are enormously wealthy 1t may
come TO pass that their efforts to bring about
further appreciation in values will be successful.
General conditions affecting the actual worth OF
securities are favorable at the moment. but there
are many people who believe that stock market
values already have discounted present and
prospective Improvement In the industrlaI posi-
ton of the United States. The spirit or antas-
onism against the railroads which has developed
in Congress is feature which has helped to
create bearish sentiment stocks, and the APP
parent desire of the lawmakers to bring about
legislation which will curb the grasping pro-
pensities of many of the big transportation com
panies may prove a stumbling block in the cam
paign which spectators have mapped OUT Ioi
higher prices in securities
Conditions in the money market in the last
week underwent no material change. as far as
the movement of rates was concerned. the price
for call funds ruling at a relatively easy leVel
while time money in good supply at from
H. to 4s. per cent, according 10 the maturltles
Of the loans Notwithstanding the ease in rates
the banks suffered a heavy loss in their opera
tions with the Sub-Treasury. while the receipts
of funds from the interior were smaller than in
the two preceding weeks. According 10 the best
authorities in the banking community rates Tor
money will not change much for time to
come unless there should be an unexpected
early movement of money from this centre to
the interior but 1t is believed that later on in
the season there will be a frmer tone in the
market owing to the demand for accOmmoda-
ton in connection with the countrys heavy
brainass and to an outward movement OF gold.
Rates for foreign exchange continue TO rule in
the neishborhood OF the gold exporting level,
and il is quite probable that just as soon as the
Bank of France Is in a position TO buy more
gold through an extension Of its note circula-
ton limit there Will be shipments of the metal
10 Paris OF course, if the movement should
reach large proportions further exports would
he checked by an advance in money rates at this
centre The prospect Of losing gold, however
is not worrying Wall Street. for the good rea-
son that financial conditions in this country
remarkably sound. while the amount of gold is
larger than ever before recorded. There is an
ample supply of money in the country for all
requirements of trade and the increase in the
circulating medium IN the last few years has
kept pace with the expansion in the cOuntry's
Industrial activities. The inquiry for mercantile
than noted in many weeks, while the offerings
confidence on the part Of the business COM
will be big enough in the next twelve months TO
warrant the carrying of large stocks against
which the merchants viii be able TO make large
loans
The heavy loss by the banks to the Sub
ceipts by the government and TO the PAYMENTS
to the government by the banks on account of
the per cent redemption fund. these pay
ments continuing to exceed payments to the
banks by the Sub-Treasury for the redemption
of national bank notes The supply of national
bank notes in the Treasury awaiting redemption
is decreasing notwithstanding the large receipts
of notes for redemption and the prospects
favor steadily increasing government receiDts
Of customs miscellaneous and internal revenue
the local banks for some time TO come Will only
be able add to their reserves through shin
ments OF currency from the interior m tb;s