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

large in volume on a movement of values that
generally tended in the direction of higher quo
tations. Notwithstanding the fact that money
rates advanced to figures higher than any re-
corded since December, 1883. there was prfc-
tically no interruption to the upward course of
quotations. a rate of no per cent falling
to brighten the speculative community. 1t was the
most remarkable market ever witnessed in the
history of Wall Street In the past when money
advanced to exorbitant level condition or
panic always developed in Wall Street but IN
the speculation of the closing days of 1903 there
was absolutely no indication of uneasiness IN
the speculative and banking community Indeed
the greater number Of people in the Street were
intensely and enthusiastically bullish. Power
full financial interests the chief owners OF
stocks, and they apparently have no intention
of parfing with their holdings at the present
level despite the position Of the money market.
They believe that the current strength In money
rates will not last for any material length OF
time while they have adopted the well GROUNDED
theory that the wonderful condition of the coun-
try's business and the splendid prospects Tor
1908 more than offset passing fluctuations IN the
loan market or passing unfavorable develop
ments in the general situation, including me
situation of affairs abroad Borrowers were Will
ing last week to pay any price demanded for
funds the expense of obtaining money being
more than counterbalanced by the profit Sc
cured in the advance IN stock market prices.
New high records were made for many issues
Including Union Pacific and Anaconda, lhese
two shares being the leading features IN me
week on the exchange At the close Of the year
predictions were freely made that the ouh mar
ket would continue in the new year, although
some of the more conservative interests We're
not disposed to advise their customers TO enter
speculation at prevailing quotations. There are
dom in q Tl1
which there have been violent upward move
rnents ACCOMPANIED by enormous dealings, es-
neciailv when such a market has been advanc-
ing for eighteen months, practically without a
setback OF course. conditions now are dlfter-
ent than those that are past, and the current
market cannot therefore be judged by precedent
There is not yet weak public account in the
market although there are indications that the
public is becoming more Of a factor IN specuIa-
ton Prices will decline when the speculative
leaders have parted with their securities. but
according to market gossip, such liquidation
viii not take place for a considerable time to
come
Foreign exchange market conditions are in
huenced for the moment by the high rate for
money and as a consequence quotations Tor
sterling are ruling at q level below the point
which would be normal under ordinary circun-
stances. Were it not for the strength IN the
money market foreign exchange would pc at
figure near the gold exporting level. PropaoIy
in the new year there will be a material change
both in money and sterling, money decnnlns
and exchange advancing, although It IS not llhe-
" that in the first few weeks of January money
ratas viii move to an easy level. The demand
for remittance is active, while the supply OF bills
o+st6a of finance bills is small. and just as soon
.. foreign bankers find profit in lending
f,,n6s here through the medium OF the foreign
exchange market there will be scarcity OF oills
large enough perhaps 70 bring about exports OF
gold The demand for money abroad Is acuVe N
o,i tho foreign capitals especially in Berlin and
paris q reflection of which is presented in the
decline in the Paris and Berlin exchange rate on
London Although Paris has q large supply OF
gold and is IN splendid financial condition. it
still has Russia think about, and as the largest
holder Of Russian securities it is taking every
nreeaution for possible emergency Just as
soon as the internal strife in Russia ceases,
ana there are indications that this viii soon
take place, Paris and Berlin and possibly Lon
ao, and Network will be called upon to finance
the long postponed Russian bond issue Al
though Russia has still a large amount OF money
IN its credit it will need vast sums TO pay Tor
4he damage done by the recent Russo-Japanese
We while the expenditures incident to quelling
4ba present home revolt will cut no small figure
-. +tsa anal accounting resulting from Russia's
troubles.
F5ieb rates for money last week were due to
+ba low 7,osition of the New-York bank reserves,
IN the failure Of interior cities to send important
GUMS ia this centre and to the withdrawal by
che +rust companies of deposits from the banks
q, order TO make 8 good showing in their state
,oen4s for the January 1 call. In the first week
i January these amounts Will go back 10 the
hanks while there ought to be a material in
60 IN receipts Of currency from the outside,
oItyough in this connection It should be borne in
mind that the great activity In trade throughout
+ba country may prevent large movement OF
currency to NeW-York. Although the Secretary
of the Treasury has refused so far to increase
government deposits in National banks, 1t may
be taken for granted that If monetary stringency
shouId affect business adversely immediate re-
lief will come from the government Secretary
sbap, has taken the stand that the present high
ra+as for funds have been brought about by
vnecuIation in Wall Street. but there are many
,,eorIe who do not wholly agree with him for the
a,oeIIent reason that there have been other fac
.ors +ha chief one being the extreme activity IN
tta commercial world which has made necessary
heavy demands on bank resources. AS matter
- fact the greater part Of the recent specula-
ton in securities has been conducted on time
money secured many months ago, ana there IS IN
eonoa minds suspicion that the nigh price lot
-o,a1y has been due in part TO BANKERS eHorts
=. .bacle tho bull enthusiasm on the STOCK Tx
obanee There is no actual Scarcity Oh hiolleS
-t voted States but the supply is poorly
dietributed and in many cases larse aillouii' 0i9
q, ,,naartakings which yet have not
o,oe TO a head, while IN many iiiseaii'e +"-l17
~ ba,ne held In reserve for the purpose OF buy
Inevitable