The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-02-18
STOCKS BRING ALL
They ARE WORTH
Yet Wall Street Believes in Still
Higher Prices to
%. s~ Come.
Special to Tho journal.

New York, Feb. lin a great num-
Der of cases stocks are selling under
their best figures Of the year. OF
course, even at these prices the majority
of securities fully measure their intrin>
sic worth, but this fact does not neces-
= sarily mean that still higher level
will not be established in the course of
1906. In some circles it is believed
that values will go somewhat lower be-
fore there is an active resumption of
the upward movement, and commission
houses as q rule are advising their Gus
toners to buy for quick turns only,
altho they predict better quotations
later on in the season. Naturally
these predictions are based on the as
sumption that there will be no falling
off in the volume of the country's trade,
no widespread labor disturbance and no
unfavorable weather this year in the
crop regions.
Sentiment on the whole seems to be
in favor of higher. rather than lower
prices. Board members say that any
effort to advance the market materially
would result in q sharp upward move
lnent in prices. The fact that large
banking house within the last few
weeks has taken several blocks of
bonds, one of which was the $2O,000,0O0
Of the Pennsylvania company and the
fact that the Canadian Pacific has de-
eided to issue $20,OOO,0OO' new stock
within two months, and the fact also
that other bond issues are likely to
come out, are regarded as convincing
proof of the confidence Of the large
banking interests in general conditions
and in the future Of the market.fsS On
the other hand, it is argued that These
rates for money relatively firm
1t is too early to pay much attention
to agricultural conditions, and it will
probably be month or six weeks be-
fore the Wall street bears begin to
spread their familiar springtime stories
of unreasonable weather and begin to
make predictions Of crop disaster be-
fore the seed goes into the ground 1t
appears likely, therefore, that the
future will be little different from the
last two weeks, with probably greater
degree of strength in the second grade
railroad and industrial issues. Invest
ment buying continues fair in volume,
but securities are being -scrutinized
more closely and more critically than
heretofore. g., -. E
Foreign exchange rates continue to
rule in the neighborhood Of the gold
no Immediate prospect Of large ship
ments Of the metal to Europe. The
money market situation abroad has i'm
proved and there is no urgent necessity
for an addition to gold reserves by ship
ments from the, United States, but it is
not unlikely that3some Of the metal will
be sent abroad as soon as the Bank of
France is able to increase it's gold hold
ings thru an extension of it's note cir
culation limit. The French parliament
has not yet taken final action on the
application of the Bank Of France to
increase its supply of notes, but it is
generally understood that the authority
soon will be given, in the event of
which the bank would be compelled to
add to it's gold account in proportion
to the emission of new notes.
AS rule, January is light month in
the matter of new business, but as q
result of mild weather a tremendous
amount Of business was placed with the
found in the fact that the untitled
orders for rails now exceed 100000
tons. In iron and steel trade circles
1t is believed that the current month
will produce better results than in any
corresponding month in the history Of
the steel business.
The labor situation in respect to the
coal miners is not receiving specia
attention because well-informed inter
ests realize that it is useless to thinl
about this matter seriously until som,
definite information can be had as t,
the probable outcome Of the presen
agitation. Conservative interests still
believe that there will be no strike.
It is not believed by the uptown
SPECTATORS that the stock market vii
be appreciably affected by unfavorabl
developments in the Moroccan situa
ton.