New-York tribune., 1906-04-09
THE WEEK IN WALL STREET.

money, though neither factor caused any as
turbance in the securities market Naturally
the high rates for loans induced a certain
amount Of speculative liquidation. A number OF
weak accounts were forced the market and
traders the floor took advantage Of the selling
TO hammer prices. but the net results at Satur-
days close as compared with the final figures
of the preceding week, were not at all discourag-
ing to the advocates of higher securities value.
Indeed, in view of the extent of the rise in
money and the uncertainty over the outcome OF
the anthracite coal situation, the losses suffered
were relatively small, indicating no widespread
desire necessity among holders of securities TO
part with their possessions. Stocks as rule
are in strong hands, and while there may be
further liquidation of speculative accounts
brokers do not look for long period Of heavi-
ness. Outside of the money and coal factors
there are no important adverse influences in the
position of affairs affecting the actual value OF
American investment securities, and as both
high money and the coal troubles apparently are
temporary in character there is no reason for
the dismal forecasts that heard in some
places regarding the country's business and the
course of stock market values.
We have had coal strikes and stiff money be-
fore and the nation is still doing business. A
coal strike of protracted duration would cause
a setback in general trade, but not collapse.
In the mean time, however STOCKS ullSuI ~
lower. An advancing money market does not
reflect adverse conditions in the industrial or
financial world, the strength being due in great
part to the very factors that making for
further prosperity in the countrys industrial
activities Brokers are advising their customers
to buy on all breaks, but the public is not much
of factor in speculation at present, ana douDI-
less will not evince any great interest until all
the uncertainties have passed away and profes-
sional operators have advanced quotations Wen
above the current level Outside conditions be-
ing favorable, it would not be difficult matter
to place stock market values at a higher level,
which might appeal to the public, which gener-
ally buys dear and sells cheap. Vigorous ef-
forts were made in the fore part OF the last week
to inaugurate an April bull boom on the Stock
Exchange, and trading in Mondays and Tues
days markets was large enough (perhaps much
Of the business was of the wash Variety to en-
courage the buyers OF stocks to entertain the
hope that the bull movement of last December
when money also was high, could be duplicated
Money market conditions in the last week
we're distinctly unfavorable for borrowers call
loans advancing to the highest price of the year,
while time funds also exhibited a frmer ten
dency Strength in money was due to the active
demand Tor accommodation from out of town
points 10 heavy payments by the banks to the
government and to urgent requirements of
stock market spectators. Reserve of the Clear
ing House institutions are low. while the legltl-
mate inquiry for money throughout the country
in connection with trade expansion is active,
and as a consequence the prospects do not
favor material ease in rates for long time to
come unless the Secretary of the Treasury
should throw large sums of government funds
into depository banks and gold imports should
be made in volume While the Secretary may
TO in
the banks it is not likely that he Will place
such an amount of money in the market which
would serve to bring loan quotations to a level
which would encourage great speculative ac-
tivity in the stock market. Nor is it considered
probable that gold shipments from the other
side of the ocean will be large enough to affect
rates to an extent that will permit low quota
tions for loans. Gold, doubtless, will come; but
If merely will serve 10 Offset the outward move
ment Of currency to this centre rather than to
increase the available money supply in New
York Extensive liquidation in the stock market
would be more effective in adjusting money to
normal basis than gold imports govern
ment deposits with national banking institu-
tions.
Accompanying the rise in money sterling ex-
change declined to the gold import point and
local bankers expressed the opinion that a move
ment of the metal from Europe would begin
this week. Fortunately the financial situation
abroad has improved materially in the last fort
night owing in great part to the elimination of
the troublesome Moroccan question, and Europe
now doubtless will be willing to send some of
the metal to the United States, though in this
connection it should be borne in mind that the
easier conditions in Europe will be followed by
the financing of a large Russian loan. which. of
course will tend to restrict shipments of gold
to this country The reduction by the Bank of
England last week in it's minimum rate of dis
count and the strength in British consols were
direct indications of the better political outlook
in European countries and naturally they en-
couraged the belief in local banking circles that
this market soon would receive relief from for
eign quarters. It is probable that throughout
the current month money rates in New York
will rule at a firm level, while it is believed
that with the exception perhaps. of a few weeks
in the summer, loan quotations will be stiff in
the rest Of the year especially if the harvests
of 1906 should be large and if business prosperity
continues. The demand for funds in the South
and West is urgent and transfers last week
through the Sub-Treasury TO New Orleans and
the Pacific Coast were in the neighborhood Of
SO 100000 an amount which offsets the receipts
of gold which were reported at this port in the
last fortnight The requirements of the Pacific
Coast are increasing. owing to the rapid develop
ment of all lines of industry in California, while
currency is needed at New Orleans to move what
remains Of the old cotton crop and for expenses
in connection with the planting of the new crop.
Cotton has been held in the South for higher
prices and as a result the return movement Of
currency from Southern cities will be later this
year than usual. AS money rates at all interior
points are high the urn quotations at this centre
| chit Occ TO