New-York tribune., 1906-04-16
THE WEEK IN WALL STREET


prove 70 an extent that will bring about iiio'0
normal monetary situation. There are MANY CO
cellent reasons for this belief, and unless Cute"
indications fail there ought soon 10 deNei'p ~
70 tions for funds which will prove of no nara
shin to mercantile and speculative borro"ei'
Money. of course. was prominent iao''
last weeks Stock Exchange trading. declines III
securities being recorded when loans auNa.
to the high points made in the first three DAYS
and ir,nrovine when rates fell under the inho-
ence of gold import enga genents ana receip'
of large amounts of currency at this centre Iroii
out-of-town points. Stock market Nalue
throug hout the period of high lendihe ldte'
exhibited great resistance TO bear a'tdNA''
the fact that the extreme pressure ""
been placed on stocks in recent weeks mas
heen effective i'm causing disturbance
creates the impression that securlues
the hands of men who are f1nanclalS e'i'"9
and that holders are willing TO carry 'nei O.
counts through days of high money In the con
fdent belief that prices will move TO nia'ei
lv better level before midsummer. Inns iue"
based on the we'll founded assumption ''"
fairs in the business world Will coh'inue "
present prosperous condition ana Ihat iiio.
evidence OF the country's great 1nousria
mansion will attract a heavy demand for seeui
tiles from the public at large ai'o
from foreign investors.
Ao.ora,r. IN authorities who recently have re-
turned from Europe foreign capital is more as
posed to move into American investments Una"
il was a few months ago. while speculauFo "
terest is beginning to turn from the oou.i o.
can mining shares to the American narhe''
pencially in the of the copper ISSUES "'
IL is believed. will advance, owing 10 the s'roie
statistical position OF the metal ana the in'p'V
ing demand of copper in all parts OF the "o.
II is understood that the supply of copper aoroau
y Ia .
consumption in this country is heavy enough u
nravsn+ the accumulation of large surplus STOCKS
Earnings of all the copper companies are heaVy
and it is expected that the Amalgamateo Ooppei
directors Will increase the DIVIDEND on 'he oo.-
panys stock at the next divioeho pelioN
fact that quotations for many issues are se'i"e
at level which does not net current puSe's
large returns on their purchases does not upset
the SPECTATORS theory that with the return OF
easier rates for money stocks will move 10 d
higher quotation level nor does the large amount
of new security issues now coming on the mar
ket encourage the belief that there will be a
congestion of stocks harmful to bull operations
In the week such stocks as Northwest. Illinois
Central. Union Pacific. Amalgamated copper
Reading and Pacific Coast fuctuated over a
wide range of quotations. especially the last
named security. which enjoyed marked gam
under the influence of buying, which apparently
generally believed that number of railway in
terests are anxious to secure control of the Pa
ciic Coast Company but the chances are that II
control passes IL will do at much higher fig
ures for the stock inasmuch it is closely held
and owners show little disposition to part with
it ~ present figures.
Secretary Shaw's unprecedented action in
placing government gold in national banks. to
be used as a part of the banks reserves. pend
ing the arrival of gold engaged abroad, was. or
course an influence in Saturdays market that
encouraged active covering of shorts and a be-
lief that prices for securities in the current
week would move to a higher level And the
announcement that the leading bankers of this
city are prosecuting energetically their campaign
for a reform in the currency system also
crea ted a favorable impression speculative
sentiment. The Secretary of the Treasury will
permit the banks to have all the money they
wish as long they have satisfactory collateral
to offer. but the amounts thus advanced must
be returned to the government the minute an
equivalent amount of gold arrives from abroad.
and the OF government funds while foreign
gold is in transit will thus serve TO bring about
an easier situation i'm the local money market
though it is not expected that there will be real
ease in rates for a number of weeks to come
Extreme high quotations for money last week
were accompanied by a decline in sterling to the
lowest point since December 1903, and as a
consequence of this movement New York was
able TO take gold from the Bank of England
In addition some of the metal was engaged in
Pari-. to say nothing of round amounts in tran
sit from South Africa New York needs gold
and local bankers would rather see large
movement of the metal from Europe to this side
of the ocean than heavy government deposits in
national banks. and despite the obstacles which
foreign bankers placing in the way OF ship
ments OF the precious metal TO this country the
chances are in favor of further engagements
II Is understood that the Secretary of tho
Treasury is placing small amounts OF govern
ment funds with interior banks and ~ tbesa
institutions are able to increase their reserves
through federal treasury assistance the Nev-
York institutions will he better Off inasmucb as
the rate for loans in this city will attract surn,s
funds from out of town. Domestic exchange at
Western cities on New York is stronger than
recently reported and it is thought that the
frmness in the local money market will bring
currency to the East despite the fact that the
demands for money interior points is upus
ually heavy The present conditions In the
money market are due 10 the activity i'm trade
and 10 the enormous amount of money that is
tied up in speculative and investment operations
I'm Wall Street and in real estate While the
supply or funds in this country is large as
shown by the statement of the Treasury Depart
ment Of April /. which presents a total circula-
tion OF S2.6i6,I04, 1SS an increase Of SlIT511-
6N3, as compared with this time year ago. II
is poorly distributed at the present time owing
In part TO the weak features OF our currency
system; but the fact that the country has such
4 noI1 -