New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-01-22
THE WEEK IN WALL STREET.

nlCC oOAA1AANSN-S--
ce.ved active buying orders for the low prloeo
railway shares from customers OF in0oeiA'o
r,sans while the attention OF the larger specu-
lat,v, interests was again centred on the high
,,.cad ,ssues. especially Amalgamated Copper
Anaconda. Union Pacific, St Paul. Canadian u
clio and Reading. Reading and Union fa0A4-0
sold at the best prices ever established lor Iho'0
issues without the development OF news IaoO0ts
affecting the nroperties the upward movement
being based On the known favorable position OF
the companies and the expectation oI iAi 60
dividend distributions in the future In" Gnu
nous value Of the assets OF the olhoh CO.
Company are now more generally appi
.,a os consequence people of means are buy
ing Union Pacific securities IN the coiiIuo
REF that thew are becoming owners of gilt-edged
Investments There is doubt about tqe Value
If Union Pacific as an investment ana al.ef
,,,o,,,,e careful examination of the financial
and physical condition of the property 1t IS easy
IN understand why so many people are Willing
IN nredtct that the stock eventually Will sell on
a level with its higher priced neighoors' 'iie
Nortber, Pacific and the Great Northern
There appears to be q well defined belief that
the advance in Reading foreshadows an increase
In the dividend on the stock. Great acuVlty III
the copper shares is the result or ooth speou
lative and trade conditions. and in the case u
Anaconda which enjoyed sensational advance
in the week 1t is believed that the greater part
of the stock has been accumulated by the SCalo-
ard OIL interest and that practical corner eA-
lists In the issue. Low priced issues are peconl
ing popular owing to the increasing Vaiue ol
their equities and to the belief that the time Is
not far distant when they will become OF sreShlor
interest to investors. There was time "heh
sucb stocks as Union Pacific, Atchison, Northern
Pacific Burlington and St Paul were seiinls at
extremely low figures. Their present prices are
the result of Improvement In their actuai 1nVeS'-
rent value and the advance of these issues 10
frat class investment shares will be followed by
similar movements in many Of the stocks which
ara now quoted at a low level. While foreign
operators are taking advantage of the present
bull market to sell speculative holdings of Amer
lean stocks, European investors are active IN the
American bond market. taking large amounts
of various first class investment issues Inc
bulls in the stock market are confident that the
movement in the direction of higher prices
which has carried the leading active railroad is
sues TO an average level above 13o, compared
with an average for the same shares month
ago of about $780, and the leading industrial IS
sues to an average level of 103 against 20 a
~,
to come. Good sized reactions, nevertheless are
in order. Big margins ought to be provided, and
the small spectators ought to exercise extreme
caution
Easier conditions prevail in the money markets
throughout the world, owing to the return or
funds to the chief financial centres, Whlch III
the closing months of last year were concen-
trated at interior points for use in connection
with the financing of the crops and for other
purposes incident to the end of the calendar
year Funds are now becoming better dis
tributed, and al the leading capitals reserves OF
the banks are increasing at a rate which has
brought about lower quotations for loans, not
ably In New-York, where call funds may now
be secured below 4 per cent. Time money also
is easier, being quoted for all periods on a per
cent basis. Rates at this centre are still above
those prevailing in Europe, but the chances are
that in the next few months the price of money
in New-York will move to level under the
range of the European markets. In this event
there may be exports Of gold from New-York'
but at the moment there appears to be no neces-
sity of shipments Of the metal and no dispos1-
ton on the part Of Paris bankers to attract our
metal to their side of the ocean. That an easier
feeling prevails in the Paris capital is reflected
in the advance in the Paris check on London IN
the last week, which means that Paris instead
of drawing money from Europe, is actually IN
creasng it's investments in the British me-
tropos In Fridays market Paris exchange on
London advanced to % francs 10 centmes' ana
unless there should be further material advance
in sterling rates in New-York there will be no
shipnents Of gold at present Paris bankers are
looking forward to an authorization by the
French Parliament of increase in the bank
circulation of 1OOOOO0,O00 francs, and If per
mission is granted for such an increase large
portion Of the amount doubtless will be USED lot
the purpose of increasing the banks gold re-
servo In that event the demand from Paris for
gold undoubtedly would be renewed and ship
rnents of the metal would be made from here.
Gold exports however, at this period would
not create alarm in financial centres. owing to
the strong position of the financial situation in
the United States and the rapidly increasing
OUTPUT of gold from the American mines In
the last year the United States produced over
SS6 100000 in gold compared with SS0O00,000
in the preceding year; while the production of
the entire world exceeded the record output of
1904 by over $2S000000. and in the same time
there was an increase in the amount Of circula-
ton in this country Of $101.922 446 This ought
to suggest to all observers Of monetary condi-
lions that there has been increase in the
amount of money in the country in proportion
% the expansion in the country's Industrial
activities, but notwithstanding this gain in the
amount of money our currency system has made
1t possible for periods OF exorbitant rates for
funds at a time when the demand for accom-
mediation has been most urgent. An interest
ing financial development last week was the
announcement that large amount OF gold
would be deposited In this city for the account
of Chilli the significance of the announcement
lying in the fact that the decision OF Chill to
open an account here means that the South
American republics are willing to look