New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-01-08
THE WEEK IN WALL STREET.

IrreguIarity in prices. accompanied oy sie''
activity in dealings. marked the course OF ousi
ness the Stock Exchange in the hrst "eeA VI
the new year. Early in the week high rates loi
money served to bring about more or less
liquidation, and consequence there were
periods of short declines, especially in Thurs-
days market when operators for lower quota
lions were helped by the remarks made by
prominent fnancier. which in effect that
unless Congress took some action for the i'm
provenlent of our currency system there would
be tremendous financial panic throughout the
country. These remarks We're qualified the next
day by the statement that the banker who mace
the sweeping panic prediction really did not
mean just exactly what he said Ihls sausneo
Wall Street, and prices again began to BOOM
reaching in many cases new high record ngures
It is admitted that our currency system ought 10
receive the careful attention of Congress, but
it is Just as we'll to bear in mind that there Is
still large amount of money in the country
and that the chief troubles in the recent money
market were brought about by overspeculation
in securities According to the opinion OF the
best Informed men of the Street. there appears
to be nc immediate prospect OF an important
decline in stock market quotations. put thete
are many people. however. who are beginning
10 believe that it is only matter or snort
time when there will be a change in the course
OF quotations which will give the bargain hunt-
ers rare opportunities to secure first class stocks
and bonds at attractive prices. OF course. sucn
a day is bound to come but in the mean time
the larger speculative interests will have great
confidence in their campaign for higher figures,
and they freely predict that before they part
with their holdings stock values will be selllng
many points above the current Quotauon leVel
Further active buying of the Copper shares
Union Pacific and Reading was. perhaps, the
most interesting feature of the week on lhe
Stock Exchange. and from the course OF tne
Copper shares it looked as if two powerful par
ties were striving for the speculative control OF
AmaIgamated and Anaconda, with the chances
favoring the element which for many weeks has
heen hacking these two securities for higher
prices It is believed that the Copper shares,
under the influence Of the growing strength III
the trade situation will be features IN TINS year
market especially in the immediate future'
Union Pacific made q new high record. selling
above 49, while number of other snares en-
loved the distinction OF reaching range ABOVE
the best established in the old year Al 1he
close of the week indications apparently pointed
toward further bull activity in the current week.
Money rates in the first week OF the new year
were maintained at a high level until FRIDAY
6aenita the predictions which were made IN some
roorlx Informed quarters that Immediately after
January / there would be important relaxa-
ton in quotations for loans. AT the end OF the
week there were indications that an easier sltua-
ton would soon develop in the money Market
rates showing receding tendency. While DO
nestle exchange on New-York gave indications
Of an active return flow of currency to TINS
centre before many weeks go by. It is gener-
ally believed that in the last three weeks in the
month and in February the movement OF money
toward Ne7T-York will be large enough to bring
Of oiatjc to
lower level although 1t is not expected that there
win be any approach in the future to a
ar Q per cent level for accommodation. Business
conditions throughout the country strong.
and the requirements in the industrial world are
so heavy, that money ought to be active through
out the year and it is owing to a belief Of this
sort that operators in securities are willing TO
purchase stocks at present high prices. There is
a large amount of money in the country,
Election of which is presented in the Treasurys
monthly statement OF the amount of money in
circulation. showing for December an increase Of
over SO 100000 as compared with the preceding
month"; making a gain in the calendar year of
nearly S1O2.GO0.ODO. The total supply of money
in the country exclusive Of government holdings,
is 81 671 1881, giving circulation per capita
of S31 90. This compares with $25 73 January
1 1900 There has been an enormous increase
in the circulating medium in the United States
in recent years, and as our gold production is
growing at a rapid rate It is easy to figure CT
further large additions to the supply Of currency
in years to come. The gain in the output of gold
is responsible in great part for the high prices
prevailing in all lines which go TO make up the
cost of living. The period of excessively high
money rates has been longer than ever before
known in the history of Wall Street, but fortu-
nately 1t has not brought about disturbance in
the financial or commercial world There is
enough money in the country for all purposes.
but 1t is not well distributed at the moment If
monetary conditions should arise which would
cause distress in the commercial community the
government would throw large amount of
funds into the channels of trade by increas-
ing deposits In national banks but it hardly ap-
pears likely that the Secretary of the Treasury
viii make any change in his attitude regarding
the increase of government deposits solely to
help out Wall Street spectators
In the foreign markets money continues at
firm level. although rates are under the prices
charged for loans in New-York Just as long
as this condition prevails foreign bankers will
draw their credits abroad lending the pro-
ceeds in this market in the form of finance bills
New-York at present. and It readily may be seen
position Of money and foreign exchange returns
to a more normal level. The United States al
though exporting more merchandise TO Europe
obligations abroad. and just as soon as rates for
money decline there will be an advance in quo
tations for sterling. with the probability of gold
exports from this side of the Atlantic The coun-
try can stand drain its gold supply. but if
-oreio,, demands should reach