New-York tribune., 1906-10-01
THE FINANCIAL MARKETS.
JRBEGr71ARITY MARKS COURSE OF SECURITIES
VALUES.
tph Monev Rates Politics Factors Conditions Sound
Railroad Earnings Hea1y.
IRREGUL4RITY
THE WEEK IN WALL STREET.

heavy pressure the market by the pear e4e-
ment operations of this character being accom-
panied By selling by commission houses ana
liquidation TO certain extent by the substantial
interests who for so many weeks have been
behind the bull movement Sales of the latter
however did not represent "a change IN the at
titude of the big men toward the future OF the
market their transactions merely furnishing
evidence Of their willingr IS at this time 10 sec
lower quotations in order to accumulate further
lines Of good issues The .money market and
political situation naturally were the chief feat
ures governing the movement of values. and ac-
cordag to traders who in favor OF cheaper
quotations. both factors distinctly unfa-
vorable There is no doubt at all about the
unfavorable position of the money market. not
withstanding the action of Secretary Shaw In
increasing deposits in national banks to the ex-
tent of S26,0000O0. but there is no reason Tor
uneasress in investment circles over the poliu-
cal outlook IN spite of the nomination of MIR
Hearst by the Democratic party for Governor
There appears to be little chance Of his success.
owing to the wisdom of the Republican party in
placing in nomination a man who has the con-
fdence Of the business Of the state.
Capital doubtless. will be made out of Mr..
may bring about liquidation by timd holders Of
securities, while the larger speculative interests
may encourage a movement toward lower prices
the basis OF politics. solely in the effort to
buy attractive American investment issues at
figures under those prevailing 1t is gem
orally admitted that in many instances stocks
are selling at prices which adequately measure
their investment value. but there are some
good securities which so far have failed to
reach a level which is par with their in
trinsic worth discounts the increased value
which they will enjoy in the future In this
list may be included Canadian Pacific and Balti-
more & Ohio. The latter stock IS considered
cheap in comparison with many securities which
have no greater real value but which are selling
higher the Stock Exchange while the same
thing may be said of Canadian Pacific. which
represents q company controlling large pro-
portion of the traffic of Canada. Earnings of
the Canadian Pacific were enormous in the last
fiscal year, while current returns show even
greater Improvement, gross receipts since July l
having increased more than 100000 as COM
pared with the corresponding time in 1905
There is little prospect of easy rates for loans
during the rest of the year. though bankers now
believe that there will be no disturbance unless
unwise speculation in the stock market should
develop. The consolidated statement of all the
national banks of the United States presents
reasons for the action of the Secretary Of the
Treasury in placing government funds with the
financial institutions. especially as this state
ment presents an increase in loans since August
%. 1905 of more than $500 100000 an increase
In individual deposits Of $37900OOO0 and a de-
crease IN cash of $39, $4,000. Business condi-
tions throughout the country are extremely ac-
tive and require large amount Of money, and
In consequence money is moving actively in the
channels of trade and is too scarce at present
TO warrant heavy operations in the speculative
markets. Reserves Of national banks through
out the country are low, while abroad bank
conditions are unusually favorable for this
period Of the year. The return Of the Bank OF
England last Week showed a large decrease in
resources and this is particularly unfortunate, as
at this time there appears TO be no cessation in
| the American and Egyptian demand for gold
American bankers, however. doubtless will find
Il extremely difficult to secure further large sums
| In the British capital. and if the active inquiry
| for accommodation continues the Secretary Of
| the Treasury may be compelled to pay in ad-
| vance government bonds which mature next
July There is no particular reason except
| Cuban possibilities why the payment or refund
ing Of these issues at a lower rate should not be
| done in advance of their maturity, the fed
eral government is IN an extremely prosperous
position, holding large surplus funds The
| Cuban occupation, however. contains possibili-
| ties whtch suggest large government eXpendi-
lures. and which may make impossible the pay
inert or the reiunding OF tn. government issues
which. soon will reach maturity.
| Both time and call money rates in the last
| week particularly TIM funds. which ruled, in
| cludins Il commission at per cent. did not
| encourage activity on the bull side of securities.
and the fan, that merchants experienced consid-
| erable difficulty in securing needed funds except
| at exorbtan: figures naturally created mora
| bear sentiment than had been recorded in many
weeks Mercantile conditions. however, so
| extremely sound that bankers not at all
alarmed over the future of the money market.
! believing that after the financing Of the crops
| has been completed there will be a large return
/ flow OF money to this centre and that the agri-
| cultural community will be extensive buyer
| Of ell lines Of goods. involving the shipment of
| large sums TO the Eastern markets. In the
| iron and steel trade conditions remain favor
able, and there appears to be no expectation on
the part Of conservative observers OF the situa-
| ton of an important reaction in the future,
though It IS thought that there may be a health
full quieting down in the course OF the next six
months In some lines overstimuation has de-
veoped and efforts accordingly being made
| by people who have the best interests OF our IN
dustries in mind TO discourage activity which
| leads TO such condition. Railroads are placing
| large orders for futurs delivery for structural
material and new equipment, while the demand
| from consumers of iron and steel remains ex-
| ceedingly heavy. The advance in the price of
raw material is affecting some manufacturing
| plants. but at the moment this movement is not
seriously considered in trade centres The in
crease in the dividend last week on Anaconda
stock reflected the favorable position of the
| oP