New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-02-12
THE WEEK IN WALL STREET.

Stock market values moved in an irregular
| manner throughout the week, while the volume
| of business showed material contraction from
the heavy records, the greater part of
| the operations being supplied by the board room
element. The larger interests apparently are
! disposed to let the speculative situation take
care OF itself for the present. but the fact that
securities are in strong hands does not en-
| courage the idea that the absence of active OPP
| erations will result in materially lower prices.
| Recent developments such the increasing
| probability of a coal strike this spring. the
passage of the Hepburn rate bill and large losses
by the local banks in their cash holdings, have
not been effective in bringing about important
liquidation in the stock market and the fact
that prices have rallied easily after all reactions
suggests the opinion that there will not be a
big setback in values unless there should arise
distressing factor in the world of
money and business. In the greater number OF
cases stocks selling under their best figures
OF the year OF course. even at these prices the
majority of securities fully their in
trinsic worth, but this fact, however, does not
necessarily mean that a still higher level will
not be established in the OF 1906. In
some circles II is believed that values will go
somewhat lower before there is an active re-
sumption OF the upward movement and COM
mission houses as a rule are advising their Gus
toners TO buy for quick turns only at the mo-
ment, although they predict better quotations
later on in the season. Naturally these predic-
lions based the assumption that there
will be falling off in the volume of the coun~
trys trade. no widespread labor disturbance and
no unfavorable weather this year in the crop
regions.
In the last week frmer tendency developed
in the time money market, while there was no
material change in the position of call loans so
far as rates were concerned. In expectation of
an active demand for funds from the interior
this spring the local banks are combining their
current loans in great part TO the call depart
ment of the market and as consequence Dor
rowers who desire loans for extended periods
compelled to pay better rates than those
which quoted few weeks ago. The re-
ceipts OF currency from the interior so far IN
the current year have been heavier than in the
corresponding periods in preceding years. but
the shipments from New-York also have been
larger and as a consequence the cash holdings
OF the Clearing House institutions have not in
creased as much as they expected to 10
earlier in the season. Large receipts from the
interior have represented in part shipments OF
national bank notes from out OF town points to
this centre and as these notes are not available
for reserve purposes the banks have not been
favorably affected by the movement The open
winter has served to permit a large amount OF
outdoor work which ordinarily is not possible in
the winter season. and this has kept more cash
in circulation, which in most years would have
gone into the banks at this point. The supply
of money however, at the moment Is large
enough to meet all the requirements OF trade
and speculation, and there Is no indication OF
uneasiness In New-YOrk banking centres over
the outlook In the money market in the balance
Of the year, although II is believed that hisner
rates Will be recorded this spring
Foreign exchange rates continue to rule in the
neighborhood of the gold exporting point but
just now there is no immediate prospect of
large shipments OF the metal to Europe. The
money market situation abroad has improved
materially in the last few weeks, and there is no
urgent necessity for an addition TO gold re-
serves by shipments from the United States, but
il is not unlikely that some OF the metal VIII DC
sent abroad just as the Bank of France
is able to increase its gold holdings through an
extension of its note circulation limit The
French Parliament has not yet taken final ac-
ton on the application of the Bank OF france
TO increase its supply of notes, but ii is gener-
ally understood that authority soon will be
given in the event OF which the Bank, Of course,
would be compelled add to its gold account
in proportion to the emission Of new notes.
Rates In Europe for money are quoted below the |
New-Yorl level, and, this being the case for
eien bankers are inclined to employ their money
here although in the last two weeks a large |
amount of maturing foreign loans have been
Skinned TO the local banks, reflection of which |
is presented in the increase in the loan item |
OF the associated banks. The entire amount of ,
cash held by all financial institutions in New
York as compiled by the Clearing House, is |
$40 sos 600 less than il this time in 1903.
This is an indication of the extensive employ /
ment of money at present in the industries OF
the country.
General conditions in the business world are
favorable in most lines and reports received by
the New-York commercial agencies indicate a
sound position of affairs in all the chief CEN
tres of trade Railroad rate legislation bank I
Investigations and the possibility of a big coal
strike this spring far have failed to create
alarm in the minds of business men, but they
have. however brought about quieter specula-
tlon in securities and a tendency on the part of
operators in stocks to work for lower quota
tions. The fact however. that the present stock
market is undergoing course of reaction does
not indicate that conditions in the business
world becoming less sound. Stocks in most
cases have discounted in their market quotations
business Improvement and decline from the
cent high level is all surprising. The
leading producers of steel assert that notwith-
standing a slight falling off in the volume OF
business. the tonnage being booked contin-
ues in excess of production. and that stee! plants
falling behind rather than catching up with
untitled tonnage. AS rule. January is a light
month IN the matter of new business but as a
result of mild weather a tremendous amount OF
business has been placed with the steel com
panes reflection of which is found I'm the
fact that the untitled orders for rails now ex-
coed 2,5lDOO0 tons. In iron and steel trade
circles it is believed that the month