New-York tribune., 1906-11-26
THE WEEK IN WALL STREET.

interests were not actively identified with the
speculation. except in a number of instances
where quiet liquidation was reported for their
account. Early in the week considerable
strength was exhibited In most parts of the
list, but in the last few days prices in the ma
jority of issues moved toward a lower level. the
only important exceptions being presented by
some Of the low priced issues. notably Missouri.
Kansas & Texas. The improving prospects of
the Missouri, Kansas & Texas company and
the possibility OF the control of the road passing
to the so-called Hill interests naturally attract
attention to the shares of the road. and it is not
unlikely that both the common and preferred
stocks will reach a materially higher level. The
bonds of the company also ought to improve.
they first class investment issues.
Following the announcement relating to the
plan for the distribution of the income from the
lease by the United States Steel Corporation Of
the Hill lands, most of the high priced secu-
rites declined. selling doubtless being based on
the theory that the good out and that
quotations had fully measured the benefits which
the stockholders of the Great Northern Railway
will receive. 1t is not at all unlikely that there
will be number Of interesting developments
the not distant future affecting Union Pacific
and Northern Pacific, while 1t is also probable
that in the course of the next six months there
will be enough bull ammunition in the way of
carry the level Of securities in general to much
higher point, though 1t Is considered probable
that there will be great activity on the bull
side of the market until after the turn OF the
year. All conditions In the business world re-
main favorable. and there is no indication of a
change in the fundamental factors affecting the
intrinsic worth of securities in the future.
Railroads and industrial concerns are making
enormous profits. labor is being better paid, and
the high cost Of living is therefore not such
burden as some observers would have the people
believe At the moment the more important
Wall Street interests are not disposed
courage activity in securities believing that the
money market is not in a position that will war
rant expansion in dealings in the remaining
weeks of the current year.
Rates for money in the last week were firm
both for call and time funds. while all indica-
tions in the money market pointed toward stiff
quotations for loans IN the rest OF 1906.
Money is beginning to come to the East from
the Middle West in small volume but this move
ment is offset to great extent by shipments
Of currency from New York to San Francisco
and New Orleans and consequence it is not
likely that local bank cash holdings will be ma
terially increased until after the end of the
year, especially as the demand for accommoda-
ton outside Of the regular inquiry which always
develops at this period is heavy in all parts of
the country. Bank reserves are low, and
not in position that warrants activity in the
speculative market, but some spectators ap
parently are determined to bring about higher
prices for stocks Irrespective of money market
considerations. It is conceivable that in the
event of continued aggressive speculation in
real estate and railway and mining shares ser-
Gus disturbance may develop in money, but at
present there is no indication of uneasiness in
hoy haIia vpiI1
be able to prevent the development of harm
full movements on the various stock exchanges
and curb markets
The Bank of England while showing improve
ment in its reserve last week, made no change
IN it's minimum rate of discount, and It is
thought probable that the quotation will remain
at 6 per cent throughout the rest of 1906 and
in London financial quarters it is believed that
early in 1907 gold will move from the United
States to Europe. European bankers however,
may be entirely too optimistic over the outlook
for gold shipments from here. this country
is shipping enormous amounts Of merchandise
in excess of imports, and all signs suggest the
probability of a long period of heavy exports
Of food products, cotton and manufactures from
the United States, though. Of course, the enor-
nous outgo of cotton in October may not be
duplicated in months to come. One thing is
quite certain, and it is that gold will not be ex-
ported from the United States unless money
market conditions reach a more favorable posi-
ton than is now recorded. International
change has been in favor OF this side of the
ocean for many months. and the strength Of the
situation as affecting New York is reflected In
the failure Of the drastic action of the Bank Of
England in advancing its discount rate to per
cent to influence foreign exchange against this
centre. and, prior TO the action of the bank. in
the ability of this country to draw large amounts
of gold from London.
An enormous amount of money IS outstanding
in the shape of call loans. while loans represent
ing time funds and commercial paper
tremeIy heavy. Fortunately. the banks
cured by the best sort of collateral and just
long as Industrial prosperity continues and
prices for securities remain at high figures there
need be no fear over the position Of the lending
institutions, the only danger lying in the specu-
lative situation which eventually may
heavy liquidation of loans, which would injure
SPECTATORS rather than the banks. The banks
IN this city and throughout the country. are
managed by able and conscientious men, who
will protect the interests of depositors, and the
fact that the large financial institutions
able to secure advanced rates for their money
ought to be a matter Of great satisfaction to
holders Of bank stocks. OF course, the currency
system in this country, which admits Of extern
sive fluctuations in call loans In one day. as. for
instance 90 per cent in the morning and 3 per
cent in the afternoon, is not calculated TO
strengthen our general monetary situation, and
the banks would prefer stable rate rather than
an exorbitant level hour and a ridculousy
low quotation the next.
Hope IS growing that Congress will do some
| thing at its coming session to improve the cur
| rency system, but in the mean time 1t has been
suggested that the Clearing House Of this city