New-York tribune., 1906-08-06
THE WEEK IN WALL STREET.

An August boom in stocks developed last
week. and from surface indications it is likely
TO continue until the demand for money from
the interior becomes urgent enough TO bring
about stiffer rates for loans There was great
activity. accompanied by advancing prices in
the best part of the five days of trading. but
there was however. 20 widespread demand for
securities from the so-called public. the chief
buying coming from the shorts and substantial
speculative Wall Street interests, who are
anxious 10 bring about much higher quota
tion level There was nevertheless. more COM
mission house buying by outsiders than re-
corded in recent weeks, and il was thought
probable that with the continuance of aggres-
sive bull operations there soon would be a re-
spectacle public following in the market. es-
pecially as many attractive morsels for the
speculative appetite were placed on Wall
Streets delicatessen counters. In addition TO
the declaration of a dividend on the common
stock Of the United States Steel Corporation
there well founded rurnors of the intention
Of directors of various properties to increase
dividends and TO place in the investment COL
umn shares which never have paid anything
20 their stockholders. There are good chances
Union Pacific; il is expected that Southern
Pacific Will receive a dividend: also Pressed
Steel Car common. and that the rates on Chesa-
peake e Ohio and Norfolk & Western will be
increased. The expectation OF such develop
ments is good bull food, and II is being handed
out in supplies that are calculated 20 inspire
great public confidence in the stock market
that is confidence among the followers who gen
orally get into the market il is about 10 de-
cline. The time is short in which conditions
will favor the bull manipulation. and the word
has gone forth in speculative circles that prices
must be advanced in order TO provide a good
market in which the tied up pools and individ-
uals may part with their holdings at a profit.
The approach Of the season when money will
go to a higher level and the fall Congressional
elections will be factors that may serve to
strain activity in securities. and it is more
than natural that spectators who have stocks
on their hands should be anxious TO create a
bull market this month. especially as general
conditions in this country are so uniformly
favorable. The crops are apt to break records.
the iron and steel business has never been in
better condition railroad earnings are heavy,
and in all departments OF trade there is but one
story and it is prosperity. The fact that the
quotations for the greater number OF the lead
ing securities have enjoyed marked recOveries
cases are selling at a level that makes but a
small return TO the purchaser does not enter
into serious consideration at this time. 1t is
not a question of whether or not prices too
high 1t is merely a desire the part Of
spectators TO let some one else have their hold
ings at better figures, and belief that the time
is ripe for the development of an intensely bull
ish sentiment among the public. Probably the
conservative business men throughout the coun-
try will not be attracted to the stock market
at present prices, particularly as they have
their funds we'll employed in the channels OF
trade but there doubtless will be enough Of the
small fry TO assist the big fellows in their
loading movement.
Money market movements do not suggest the
development of Ii long period of in loan
quotations Indeed, there are reasons for the
belief that call funds will soon work toward a
higher level. an indication of which pre-
sented in a stronger market at the close of the
week than recorded since the early part of July
While there were some slight concessions in
time money in where the collateral was
exceptional, the general position of this depart
ment of the loan market of extreme
firmness. with the chances favoring stiffer
figures IN the near future. Rates Of domestic
exchange at interior points on New York do not
yet reflect an urgent demand for funds from
there will be an active inquiry for accommoda-
tiOn, Notwithstanding the talk that is heard
70 the effect that the West and South will be
able this year to take care OF their requirements
without calling the East for assistance. This
idea has been put forth every year in the past.
and II always has been found in error Though
the interior institutions in a stronger posi-
tion at present than generally recorded at this
period Of the year. they will be compelled 70
answer greater demands than in any preceding
season. owing to the probability of big crops
and the enormous expansion that is under
way in the country's industries. Their bal
ances in the New York banks are small, and. as
a consequence, they will be forged to take other
than their own money from our supplies, the
result OF which will tend to create firm rates for
loans, unless there should be tremendous gold
imports from Europe. of which the chances are
not now promising. Local bank reserves, while
larger than they were a few weeks ago, are in
no position 10 stand drain from the interior
without the assistance OF gold imports and
Treasury deposits, and, fortunately, the Secre-
tary of the Treasury has signifed his intention
of placing as much money with the countrys
banks as he can, with the understanding that 1t
will be withdrawn as soon the urgent de-
mands are at end.
Tho development OF active bull speculation in
securities at this time Is not favorable factor
for the money market while the disturbance in
Russia is another influence that must be taken
into careful consideration II was thought a
few weeks ago that gold imports were about to
begin in volume, but exchange soon after began
10 run against this country owing in great part
10 the sales Of American securities for foreign
account, and at the present quotation for ster-
ling the metal could not be imported except at a
heavy loss. Under general trade conditions ex-