New-York tribune., 1906-11-05
THE WEEK IN WALL STREET.

THE WEEK IN WALL STREET.
notwithstanding high rates for money and
election uncertainties the stock market gave
good account OF itself in the last week, with
every indication Of Improvement in the present
week in the event of the election of Mr.. Hughes.
There appears 10 be doubt in the minds on
Wall Street men over the outcome Of to-mor-
rows voting, reflection Of which is presented
in the betting odds the curb-odds which ex-
press the confidence Of the financial community
in the good sense Of the people of this state, and
the belief that the voters will place the Repup-
lican candidate in the Governors chair by an
overwhelming majority IT, by some mischance
Mr.. Hughes's opponent should be successful
there might be temporary decline in securl-
ties but Wall Street is prepared for such oe-
velopment, and IL holders Of securities oeclu7
to part with their possessions there Will oe any
number Of buyers willing 10 absorb all offerings
OF course, the purely speculative element VIII
be glad TO take advantage Of Democratic success
in order TO make profits on the short side OF the
market, and the chances are that the chief SELL
ing in case OF Mr. Hearst's election will originate
on the floor Of the Stock Exchange. The great
strength Of industrial conditions in this country
could not be weakened by anything that Mr.
Hearst might do, and this view is becoming
more general in thinking circles. and in conse-
quence the financial powers are not worrying
over the future. Naturally, they feel that Demo-
cratic success in this state and the election OF
a. Democratic Congress would be a great mis-
fortune, especially in the past the Demo-
cratic party has always been the party OF oo-
struction, and in some cases destruction. Con-
ditions however, throughout the country ooth
financially and commercially are resting on
such a sound and solid basis that 1t would re-
quire something more than the defeat of the
Republican party to bring about a situation
which would lessen the intrinsic value OF Ameri-
can investment securities.
In the week dulness was the chief feature in
the first few days. while in the closing days
strength and activity developed the latter move
ment being helped by the increase IN the divi-
dend rate on Pennsylvania stock by the willing
ness of large lenders of money to put out their
funds call at per cent, compared with
higher rate earlier in the week, and by the more
confident predictions of victory from Republican
headquarters The increase in the dividend on
the Pennsylvania stock from to per cent,
while justified by the earnings of the property
was not an altogether popular development as
far conservative interests were concerned,
owing to the fact that the company now has
under way Improvements which involve tre-
mendous expenditures, and which doubtless will
call for further increase in the companys
outstanding obligations There was some dis
appointment over the failure Of the directors OF
the Chesapeake & Ohio 10 increase the rate on
the companys stock; also disappointment in
speculative quarters over the decision of the
Steel directors not to advance the common stock
dividend TO a higher level. Earnings Of the
United States Steel Corporation for the last
quarter, which We're published in the week, were
heavier than in any corresponding period in the
history Of the corporation, amounting 10 more
than S36,000.000 net, and indicating net earnings
for the calendar year of upward of s150.000.0 600.
If the earnings of the corporation continue at
the present rate, the dividend on the common
doubtless will be restored TO a per cent basis
at no remote period. but the moment the con-
Germ has much construction work hand. in
Guiding the building of vast plants at the town
of Gary, and the directors wisely have decided
TO use earnings for this work rather than raise
funds through the issue of bonds. Hence the
stockholders were compelled at the last directors
meeting to forego the enjoyment of an increased
distribution on their holdings. While there was
not large amount of public interest in the mar
ket last week, there was some investment buying
in the better class of shares; also in bonds, in
which there was on several days noteworthy
increase in the volume OF business
Money market conditions throughout the world
do not suggest the probability Of the develop
ment of easy rates for loans in the immediate
future. In London the position of the Bank of
England at the moment apparently foreshadows
a further advance in its minimum rate of dis
count, and if this rate should be made per
IL will be the first time since 1873 that such
a quotation has been recorded. The strength
Of money in London under ordinary conditions
would attract gold from the United States, but
money also is dear in this country, and promises
10 remain throughout the balance of the year.
while the position of the foreign exchange mar
ket is enough in favor Of New York to prevent
shipments of the precious metal from this side
Of the ocean. Fortunately. cotton exports
increasing, and in consequence the supply of
cotton bills in the exchange market is large
and furnishes a protection against high rates
for sterling while in addition TO the influence
exerted by the movement of cotton. the market
also is favorably affected by generous offerings
Of commercial bills against exports of food
products The outward movement Of wheat
and corn Is increasing. and there is also an ac-
tive demand abroad for American manufactures.
All of these factors naturally tend to strengthen
our hold on the exchange market. and 1t is a
noteworthy fact that in the last few months
indeed, ever since the spring. the United States
practically has had the upper hand in the man
agement If it may be so called of International
exchange.
Bank reserves at this centre are low and
there is no prospect of immediate relief except
| through the liquidation of loans, which, Of
course. will tend to decrease deposits, which In
turn will bring about gain in the reserve above
legal requirements. The outlook. however. for
an Increase IN cash is not particularly promis-
ing. but later on in the season there ought 10 be
a return flow Of money from the interior, though
such movement is not expected to reach the
proportions Of the recent and present shipments
from here. owing TO tho activity which prevails
| d., all ltKaaC rF
the circulating medium. The best informed