New-York tribune., 1906-08-13
THE FINANCIAL MARKETS.
WALL STREET SENTIMENT FAVORS HIGHER Sc
CURITY PRICES.
Money Working Harder but Gold Imports ire Near-Sterng Er-
change Dechnng-HeavH Trade Movements
THE WEEK IN WALL STREET.

Stock market values are moving in a manner
satisfactory TO the larger speculative interests
aad at the moment there is no reason TO predict
Il change in the near future in the course of quo
tatons in favor Of the advocates OF lower prices.
There have been in the last few days healthfui
reactions and a tendency among the people who
are pronounced bulls 10 check manipulation. but
there have been no Developments working
against the theory that fundamental conditions
warrant an active upward movement in the cur
rent month. Money market factors may for
time serve TO encourage bear raids on prices.
The desire Of spectators 20 take profits may
bring about irregularity and passing declines.
while later in the season the political agitation
over the Congress elections may afford some
ammunition for excursions on the short side of
speculation but unless there should be most
radical change in the position OF affairs affecting
the countrys industries there ought not 10 be
prolonged depression in the securities markets
Though bank reserves are low just now, and
higher rates for money are inevitable, there is
no indication Of a money panic: indeed. it is be-
lieved that preparations TO handle the fall de-
mands for funds have been carefully made
that the money market will not be adverse
factor for any length OF time in stock market
speculation, particularly as the Secretary of the
Treasury has signified his intention of placing
with depOsitary banks such amounts as may be
necessary TO relieve the strain that must de-
velop as result Of big crops and general bust
ness expansion. Crop conditions OF August
l. according 20 the returns gathered by the De-
partment of Agriculture. foreshadOw bumper
yields Of wheat corn and most other farm prod
ucts. and it is safe to place the estimate of the
money value Of the harvests. including cotton.
at s3.5OO,OO
Some people are inclined TO underestimate
the Importance OF the favorable crop condl-
tions as an influence on the country's general
business in the next twelve months but in
circles where facts and figures are studied and
where conclusions based on history are drawn
1t is realized that the backbone Of our national
prosperity depends for its strength in great
part on big crops Hence it is that close OBJ
servers seeing bOuntifu harvests assured, are
so bullish over the future. Railroads are In the
market for heavy supplies of rails bridge
material and new equipment for next years de-
livery, because they know that the prosperity
on the farms means business expansion through
out the country. Manufacturers in big
crops an increased purchasing power among
the tillers Of the SOIL and when it is realized
that this element makes up a large proportion
Of our population. the benefit OF the country
at large Of plenty on the farms will be appre-
ciated at once. National prosperity is the bull
wark Of our investment values. Speculation
may be carried TO ali excess that may upset
stock market prices and cause big losses TO
over enthusiastic operators, even in times OF
fair trade skies, but there can be no real de-
probation in the actual worth Of good stocks
and bonds until there is change in Industrial
affairs large enough to decrease the earning
power of our corporations, to bring about lower
dividends and to send individuals and COM
mar gDTn hay Tn, eba
business mortality light: indeed, the 73s
failures reported in commercial circles made
total smaller than recorded in any correspond
ing month in the last thirteen years The
crops furnish one great barometer OF trade,
railroad earnings furnish another while the
iron and steel industry supply a third All are
favorable so why should there not be cheerful
sentiment in the speculative and investment
markets.
Money is in good demand The chances are
that inquiry for accommodation in the loan
market will become much active in the
course of the next few weeks, and that rates
will rule at a stiff level in the balance Of the
year. high price for money does not spell
trouble unless that price is due TO the boarding
OF funds incident 70 uneasiness on the part OF
the people over the stability OF the nation, It's
industries and its finances. There is no money
being boarded now. There never has been
time In the history of the country when the de-
mand for money in the channels Of trade has
been more active, and advancing quotations for
loans tell US that merchants are busy that man
nfacturers are working overtime to supply the
requirements OF consumers, that confidence ex-
lists in the probability Of the success OF new en-
terprlse, and that the opportunities for the ac-
cumulation OF legitimate profits are increasing
Sterling rates changed at the close Of the week
In favor OF this country, and Il is not unlikely
that IN the near future there will be shipments OF
gold from Europe to the United States espe-
cially as affairs in Russia are Quieting down to
an extent that apparently precudes the possi-
bility OF real revolution at present Exports
Of merchandise from the Cnited States are rum
ming at a record breaking pace, and offerings Of
bills against grain and cotton shipments doubt
less will be enormous, owing to the large crops
here, the small supplies abroad and the decline
in prices which has brought the various prod
ucts OF the soil 10 an attractive export basis
With gold imports, Treasury deposits and pos
sibly the retirement of large amount Of gov
ernment bonds. the local money market stands
in no danger OF serious trouble owing to the de-
mands for funds incident to the gathering and
marketing OF the harvests.
In the last week there was some improvement
in the public demand for securities for specua-
tive account, but investment purchases were
small The investment market is still congested
with securities, and the difficulty being expert
enced by underwriting syndicates to dispose OF
their wares is reflected in the dissolution OF the
New York Central syndicate which was formed
a long time ago 10 market the company's BIZ per
cent refunding bonds. The members of the syn
dicate were compelled TO take their proportions
and in many cases they are selling their hold
ings at prices which show loss on the original