New-York tribune., 1906-04-23
THE WEEK IN WALL STREET.


Of the shares of companies which enter the
great Pacific Coast port. For brief period evf-
dence Of a panic was noted the Stock EX-
change but the resources of the powerful bank
ing interests checked the downward movement,
with the result that closing prices Saturday
showed few important changes compared with
the final figures of the preceding week. In the
long run the Frisco disaster ought not to exert
a depressing effect on securities. and 1t should
be born in mind that II trouble should develop
in Wall Street the damage will fall in great part
spectators rather than the holders of
conservative American investment securities.
Actual values will not be destroyed The coun-
trys industries will not be upset: indeed. the
construction of greater San Francisco will serve
to stimulate general trade conditions. which al
ready are unusually active and after the strain
has been removed from the money market the
prospects should be bright for an active resump
ton Of activity the Stock Exchange. espe-
cially stocks in strong hands
Opinions the probable course of money in
the immediate future differ considerably on &C
count of the San Francisco situation. which
naturally has caused something of change in
the position Of the local money market A re-
hection of this was presented at the close of the
week in higher rates, both for call and time
funds and additional engagements of gold in
Europe for shipment TO this country. but 1t was
not thought likely that there would De any QlS-
turbance In financial conditions here. especially
bank reserves are now at figures which for
the time at least remove the fear Of stringency.
1t is too early to estimate the probable
amount Of money that will be withdrawn from
this centre as a direct result of the Frisco
calamity, but 1t may safely be said that the
movement of funds to the stricken city will be
large enough to prevent the return of easy rates
for loans IN the immediate future. notwth-
standing large receipts Of gold from abroad
The Treasury has expressed its willingness TO
increase deposits of government money in the
San Francisco banks, while the New York
banks stand ready to send large in addi-
ton to the amount which transferred
through the Sub-Treasury last week for the
account Of the local Clearing House institutions
amounting to upward of s7000,000, and this fact
ought to discourage the notion that the loan
market soon will run into a period of cheap
money The will. however, be enough of the
circulating medium in the country to take
Of all the legitimate demands Of trade without
imposing hardships borrowers, though at
times speculative operations may be interfered
with on account OF the active employment of
funds in connection with the upbuilding of San
Francisco and the expansion in general trade
European bankers are not anxious to send gold
TO this side of the ocean. and the fact that bar
gold and discount rates in London have ad-
vanced In the last few days may seriously inter
fere with further large engagements OF the pre-
cious metal for American account.
Outside Of the anthracite coal situation, con-
ditons in the business world are exceptionally
favorable with every indication of further ex-
pansion in most lines Of industry. In the iron
and steel trade orders for structural material
are increasing, and it is believed that the San
Francisco earthquake will be followed by tre
mendous buying demand IN connection with the
rebuilding Of the city. which doubtless will in
volve the of steel in almost every instance.
Without such a demand, however, there is
enough new building under way in this coun-
trv to keep structural mills busy for many
months to come, while in all departments of the
iron and steel trade the demand for consump
ton is at rate which suggests record breaking
earnings in the current year for all the iron and
steel companies. Prevailing conditions in cop
per indicate a scarcity Of the metal ready for
mercantile purposes. reflection of which was
presented last week when the American Steel and
Wire Company was unable to obtain for quick
delivery four million pounds of copper. The
statistical position of the entire metal trade is
one of extreme strength while the same thing
may be said of all other lines of business
cepting anthracite coal. though in the latter
case the price situation, of course. is strong,
owing TO the closing Of the mines and the pros
poets of a long period Of tdleness.
Railroad earnings continue to show marked
Improvement over the results obtained in pre-
ceding years. gross and net returns almost
without exception being largely in excess of the
best figures ever recorded Traffic managers
are so we'll pleased with the current business
and the prospects for heavy tonnage in the rest
of the year that they are disposed to encourage
the expenditure OF extraordinary sums of money
on permanent Improvement account. The fact
that within the last six months railway
bond and stock issues have amounted to over
$6O0O00,O 600 reflects the great confidence of rail-
road men and bankers in the future of business
in this country. Nevertheless. there are a num-
Der of conservative people who think that the
market is becoming congested with new security
issues and that the time has for halt in
the manufacture of new stocks and bonds. Wall
Street is rot quite as enthusiastic over the an
of railway companies as it was few months
in the decline in Baltimore & Ohio stock when
it became known that the company proposed
place a large amount of new stock the mar
ket. The money market is not in position
present to handle stock and bond issues
and under the current conditions underwriting
syndicates who arrange to finance operations in
volVing large increases in corporate capital may
find themselves tied up for indefinite period
with securities for which there is no active
market
GOVERNMENT BONDS.
Government bond quotations compare follows
with those of a week ago