New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-05
LIQUIDATION IN
THE WEEK IN WALL STREET.

Declines which have taken place in the stock
| market value of securities have not been due to
! actual depreciation in the intrinsic worth OF
American Investment issues, Nothing has hap
/ pened to injure the position OF our industries.
! There has been important setback In trade
railroad earnings continue heavy. bank clear
ings large and in all departments OF the
/ nations activities conditions are unusually
Sound and healthfu. The reduction in prices
from the high points Of the year has been due
TO the speculative situation rather than to
investment considerations. falling quotations
representing liquidation of a top heavy bull
market at a time when certain factors in money
and politics have contributed to the success OF
a bear movement I'm Wall Street. The substan-
tiaI speculative interests who for many months
encouraged activity the long side OF the
market sold a good part of their holdings at the
record quotations established in January, and as
a consequence forced liquidation on the part OF
people who bought at the high figures was an
easy matter to bring about, especially as there
was no encouragement for advancing values in
the position of money. Moreover, the weak
speculative holders of stocks became alarmed
over the various legislative programmes against
railway corpora tons. by further adverse devel-
opments in the life insurance situation and by
the apparent determination of the people OF
this country to assert their rights in the matter
of the government of our big corporations. in
which the public is so vitality interested Many
people in Wall Street whose ideas do not go be-
yond the four walls of the Stock Exchange and
who have little respect for public opinion have
become somewhat alarmed over recent develop
ments and they profess to great danger
ahead for vested rights in anything that Con-
gress or state legislatures may do in the line
of passing laws affecting railroads and indus
trial concerns. Thinking investors. however, are
not worrying over the activity of our lawmakers.
for they naturally are convinced that nothing
is being proposed which will upset the strong
position of business in this country.
From the high points of the year there has
been a considerable decline in the price of the
greater number OF securities. this movement
having been accompanied by extensive liquida-
ton which has placed the market In much
stronger technical position than at any time in
a number of months. 1t Is not unlikely, how
ever. that further liquidation Will take place
before prices reach level which will prove at
tractive enough to invite active buying move
ment; indeed, the best informed in the
Street believe that prices will go lower before
an upward movement of any Importance de-
velops. OF course. speculative rally is due. end
better quotations may be recorded In thu cur
rent week, unless there should be some adverse
development in the world of money and business.
Declines last week sharp in number OF
the more active securities, and with the losses
suffered in preceding weeks reductions amount
ing TO 10 per cent and more were recorded among
the leading stocks from the best quotations which
made in January. In the case OF Great
Northern the present price shows a decline of
about "a points from its January level. while
Northern Pacific Is down % points. Reading
presents a loss of % points; Amalgamated Cop
per- Ii points; Union Pacific. IL points; Brook
Ign Rapid Transit, II points; Delaware & Hud-
son. "a points; St Paul, 16 points; Colorado Fuel.
90 points, and United States Steel preferred,
points. United States Steel common has been
one of the firmest features in the active list in
the last few weeks, and the character of buying
in the stock has been better than in most of the
industrials, purchases evidently having been
made the theory that the issue will be placed
on the dividend basis IN the current year, and
that therefore it's current quotation is under its
actual worth. Although the United States Steel
Corporation has made tremendous earnings ana
could easily pay dividend on the common stock.
there is no official authority for the statement
that a disbursement soon will be made At the
close Of the week prices generally were strong,
rally being encourag ed by the action OF the Sec
| rotary of the Treasury in deciding to place in
! depository banks S10OOoO0O Of government
| money. Sentiment also was helped by the belief
! that gold imports soon would begin The re-
]
in the enormous earnings of the Pennsylvania
! Railroad and in the tendency on the part Of
stocks on which dividends were suspended year
or more ago to return to the dividend class were
factors which induced great confidence among
investors over the probability of further expan-
sion in the countrys industrial activities.
Higher rates for money last week were
brought about through heavy losses by the local
banks to the government and by an increasing
iota he INN irX
for money from the West has begun earlier this
year than usual, and IT is not unlikely that the
outward flow will be heavier and continue longer
than in preceding years, owing to the active de-
mand for accommodation in connection with the
heathful expansion which is under way In the
country's industries The high rates for money
in New-York have failed to attract funds from
other places. this being due to the fact that
quotations for loans other points in the United
States have been high, if not higher, than the
! level at this centre. Accompanying the upward
course of money in the week there was mate
rial decline in sterling exchange and large offer
/ ings of bankers bills in this market. There also
was considerable speculation to the POSSIBLE
ity of an increase in government deposits in
! New-York banks, with the idea that the Secre
tary of the Treasury might be willing to take
such action on account of the improvement in
the condition of the Treasury in the last few
months and the announcement on Friday by the
Secretary that he would add TO government
holdings to the extent of $1O00000 therefore
came as no great surprise to the banking COM
munty. This amount, however. is too small TO
cut much of a figure in bank reserves.
There is no uneasiness in financial circles over
the money market outlook. but of course the
temporary scarcity of funds has been an eff
ipAu in