New-York tribune., 1906-08-27
THE FINANCIAL MARKETS.
WEEK OF EXCITEMENT AND ACTIVITY IN STOCKS.
Many Sell High Record Figures Monetary Conditions
UnfdUoable
THE WEEK IN WALL STREET.

Transactions IN securities in the last week
were heavier than in any preceding week In the
current year. the daily average OF dealings
amounting TO upward of 100000 shares. TINS
activity a continuation of the movement
which developed following the raising OK the
Union Pacific dividend rate to a 10 per cent
basis. and it was thought in well informed
speculative quarters that further animation
would mark the course of trading in the present
week. unless there should be most unfavorable
change in the general situation affecting securi-
ties prices. Outside OF the money market there
is nothing in the immediate outlook which en-
courages enthusiasm on the part OF the bear ele-
ment, but ii is conceivable that in the event of
stringency in money the bull wave in stocks Will
be checked for a time. though even with high
money. there may not be a material reaction in
quotations Traders are basing their opera
tions for higher prices the theory that there
will be no disturbance in the money market, de-
spite the present low position Of the New York
bank reserves. this idea being due to the belief
that gold will como TO this country in
volume from Europe, and that the Secretary of
the Treasury will increase to further extent
government deposits In national banks. That
the Secretary intends to help the money market
Is reflected in his recent decision to deposit
sS,OOO.OO0 with country banks and in his un-
Official statement that he is watching the money
market situation with keen interest The fact
that bank reserves are low does not indicate an
actual scarcity OF funds in the United States
but IL does indicate that money is being most
actively employed in the channels of trade and
in speculation High money at this time is con-
sidered by many people one of the most en-
couragins signs of national prosperity, but, of
course. with time money at 6 per cent there
is little encouragement for the purchase by in
vestors OF stocks and bonds which in the
majority of cases return less than per cent at
present prices.
wan street is imbued with the belief that spec
u4huon IN securities is being encouraged by the
most prominent banking and railroad interests
and IN view OF recent developments it must be
ssld that there is strong evidence that these in
terests have been most anxious to bring about
higher prices for the purpose of shoulderng the
public with their holdings. And it also may be
said that the methods employed by certain in
terests TO attract public dealings in stock have
Oeen more in line with gamblers tactics than
with the ideas Of legitimate speculation Criti-
clsfn or TINS sort, however counts for little with
the people who are behind the present market,
while the suggestion that the big men are quietly
of their securities in response to a
pubic demand, and that this movement soon
may De followed by the collapse of prices in no
way induces the enthusiastic commission house
operator to exercise caution in dealings at the
present range of prices. The so-caled public
was most active factor in the last weeks mar
hetr its presence being more pronounced than at
any time since the bull movement in the first
month Of the year. There appears TO be little
discrimination in the character of stocks
bought. purchase being made in high grade and
low grade issues alike, on the theory that, no
matter what the actual value of a stock, it's
market quotation will advance under the infu-
ence Of bull speculation. There was no impor-
'ant investment demand. The bond market was
oulI In comparison with stocks, and there ap-
peared TO be little prospects of the development
ln the near future Of active investment in
quiry for mortgage issues The absence of this
sort Of buying is due more TO money market con-
dltions than TO any other known factor but IL
should be borne in mind that bonds have been
aechnlng and may soon be at an attractive pur-
chasing level In connection with the bond
market the following opinion from well known
banker may be OF interest:
PriGes for nearly all railroad stocks have risen
LIedtiyy WhlIe bonds have been declining until now
gei1 on ponds IS often greater than that the
SoIii1lOn STOCKS or the We beliaVe
tnaL strong demand will shortly occur for very
cent bonds OF 1907 are refunded as It Is esfmated
mat nearly $S00o9O0O Of them are held by private
fbeir gr o1d Gent selling at premium in exchange for
bring practically the entire amount Of money! into
the market for investment in securities TO replace
& Irty mIt1aLuslng government bonds This refunding
as large part OF the Ss0O0000O United States per
1nL s ponds no" held by individuals WILL when re-
funGed in the per cents find its way into national
government deposits.
a. fortunately for the speculative situation most of
over the year and Il specTaon Mia Gi %
os SiG IN caeck there ought TO be great amount
oo movement at this period will insure greater
YCIrHEty YorH wnen money begins to move toward New
nat tnefe Will be large
s1ey 20 this centre after the fall demands of the
1 AOT nave been satisfied is foreshadowed by the
a1it 80 NUMBER OF buyers who now in New York
n!!Ing enormous requirements for the autumn sea-
ssOt; Furehases now being made in all lines for
York viii be correspondingly large There Is no in
@ @oIcauon OF a setback in trade prosperity in the
teaE near 1utuIe-lndeed all reports from mercantile
sources suggest the probability of another twelve
inonths or business expansion. Naturally the sound
position Of trade in the United States and The
on record encourage speculative aofivitv IN ali
SJ' ana mere is some uneasiness in conservative
carried 70 an extent which may result in disaster
ms Ne% or the outlook. however, s not popular
20 continue JUST as long the more important
nanklng ana railroad interests combine TO assert
growing earnings among corporations Increased
dividends and the establishment in the Investment
IL is generally understood that the present dividend
era, which Is the Outgrowth OF Years OF carefrl
conditions will run for many months TO come
and IL Is hoped in speculative circles that Penn.
that American Smelling will get 10 per cent and
that Norfolk & Western, Chesapeake & Ohio and
may happen however, that in the OF the Penn
sylVanta the old time conservatism OF conn
pany will assert ITSELF serving TO keep the policy Of
rather than the adoption Of the extravagant ideas
which have been noted among number OF com
been due entirely 10 speculative considerations.