New-York tribune., 1906-07-30
TIE WEEK IN WALL STREET.

In the greater part Of the last week securities
values moved toward higher level under the
OF aggressive operations for the rise by
market interests. There was. how
ever, no widespread demand for stocks, the pub
lie not being an important factor in the dealings
though It reported in commission houses
that sentiment among the outsiders was more
in favor OF engaging in speculative transactions
on the Stock Exchange than it had been in
many weeks The unfavorable position OF az
fairs in Russia had little effect on business here
Traders sought TO minimize the significance OF
the Cars action in dissolving the Douma- by
which he practically told his people that he was
the constitution. that they had no rights save
those granted by the indulgence of the Crown.
and that he would depend on his army Of 100000
men to whip his subjects into line II the army
remains loyal the ST. Petersburg government
may last, but there are strong doubts IN tne
minds of serious observers Of affairs in Russia
Of continued obedience on the part OF men VINO
are of the people, and whose real interests are
bound up in the cause for which the subjects of
the Russian Empire are fighting. At home gen
eral conditions are strong enough to create bull
enthusiasm in Wall Street, "nd operators VINO
recently changed their position from the bear TO
the bull side Of the market appear confident
weeks will be in the direction OF better quota
tions irrespective of the course 'f the foreign
markets and foreign politics Regarding poi-
tics it may be we'll TO bear in mind that III
the fall there will be some lively agitation here
over the Congress elections. and over the Hearst
movement and similar movements throushou'
The country, all of which may tend to restrict
activity in stocks.
Large wire houses report little business anu
they are extremely skeptical over the perIha-
nency of the current improving tendency IN STOCK
prices. Big Wall Street interests are buyers
but the chances are they are merely endeavor-
ing TO bring about good market in which to
sell, while it is quite certain that substantial
commission house customers who bought stocks
at the high prices last January are only waiting
for an opportunity to dispose Of their holdings
Time money is quoted at a level which does not
make investment purchases attractive at pres
emf figures Some observers tell us, however
that this is no argument for lower stock market
values, because in addition to the dlVloends
now being paid the various properties are ac-
cumulating a surplus fund that eventually VIII
accrue to the benefit of the stockholders in the
way of extra and increased distributions. II
is true that earnings are heavy, but practically
every railroad is in the market for more money
for in1provement and extension work, and up-
less railroad men become crazy and managers
prefer to boom stocks for passing speculative
profits rather than to confine their attention
to the upbudng of their properties there Will
be no melon cutting orgy among the railroads
Of this country. Stockholders, as a rule, have
been generously treated in the last few years,
and dividend payments in most cases are as
much as sound financing warrants, so it is diff
cult TO find any good reason for the argument
that surplus funds. which should be kept as
for iu1oS Of 66pr
be paid out to the security owners. Wall Street
ideas quite often run contrary TO common sense.
There is no active investment demand at pres
ent an instance of which is presented in the
poor response to the recent offering Of 4 per
cent bonds by this city, and the fact that the
Panama Canal bonds have been heavily over
subscribed should not be taken as an indica-
ton of the current position Of the bond market.
The Panama operation should be classed as
special transaction.
Money market conditions do not suggest the
development of disturbance in the autumn, but
there is no reason for the belief that in the fall
months there will be period of easy loan quo
tations The demand for accommodation is
growing heavier, and with the advent of the IN
Quiry for funds in connection with the gather
Ing and marketing Of the crops stiff quotations
for money must be expected despite the ar
rangements which are now being made to in
crease the supply Of bank holdings through the
liquidation Of loans. gold imports and Treasury
deposits with national banking institutions. SO
far gold imports are concerned we now have
a new element for serious consideration, namely
the situation Of Russian politics, which in the
last week became painfully apparent in the for
eign exchange market, where, under the infiu-
ence Of heavy selling Of American securities for
European account, sterling advanced to point
which placed engagements of the precious metal
for shipment to this country out Of the question
for the present at least. Affairs in Russia are
not quite so promising the St. Petersburg
government would have the world believe The
Car needs money. and further payments are yet
20 be made on the last loan which the unhappy
Russian country recently negotiated with for
eign bankers, but there are now serious doubts
over the willingness Of the subscribers to that
loan 20 make the settlements due August /. in
consequence OF which the Car and his advisers
are making frantic efforts to create the belief
that there has been nothing but tempest in a
teapot, and that the countrys ability to meet
fits obligations is stronger to-day than il was in
the time OF the war with Japan. AS to Russia s
credit II is interesting TO note the fact that It's
bonds are selling many points below the low rec
ord made in wartime, while semi-oficial an
nouncements are made in foreign capitals that
under present conditions the bubonic plague
would be about as acceptable as a Russian
bond.
In the event Of civil war in Russia there will
be heavy liquidation OF securities in European
markets. including sales of American issues. and
as a consequence OF such selling there Will be
no chance OF the United States securing gold
abroad This is not prediction: it is merely a
suggestion that may be wocth bearing in mind
at this critical period. Fortunately money mar
ket conditions in this country are now much
stronger than they were few weeks ago. and