New-York tribune., 1906-10-29
THE WEEK IN WALL STREET.

THE WEEK IN WALL STREET.
Operations in last weeks securities market
reflected the uncertainty In the speculative mind
over the money market and political situation
The movement o; prices exhibited extreme IT.
regularity, with the tendency generally IN the
direction Of lower quotations, though losses as
a rule were confined to small figures. while
generally the declines fair class OF buying
developed which not unfrequcntly was heaVy
enough TO bring about recoveries FOR the time
being In most of the active issues. There was
evidence of the sale Of long stock nearly every
day of the week, these operations, doubtless
representing desire the part Of holders to
reduce their lines pending the outcome OF the
election and the re-establishment of the money
market on a moro normal basis. Though Wall
Street asserted that it not at all in doubt
regarding the success OF the Republican ticket,
II observed. however the sort of caution which
always is a factor in the Street at this period
of the year and board room traders who work
from day TO day the side of the market
which appeals to them the most were active IN
taking advantage Of the political situation to
sell stocks short IN the expectation Of making
good profits on their transactions. And in most
cases they were successful.
Wall Street may have a brief decline and then
q quick rally. but the prospects of a steady bull
market the rest of the year not particu-
larly promising, owing 10 the position Of money
at home and abroad. It should be borne in
mind. however. that bull markets have been
engineered even with high rates for money, and
that in the present instance stocks are in the
hands Of people who believe that eventually
quotations will be very much higher. assuming
that business conditions remain strong
they are at present Throughout the industrial
world great strength is noted in all departments
of trade. and even signs of discomfort among
certain Iaboring men do not upset the theory
that the nation will enjoy another twelve
months of mercantile expansion. Railroad earn
ings show tremendous gains over period a
year ago, when traffic receipts were unusually
heavy bank clearings are extending at rapid
rate. and all indications Of business growth pre-
sent reason for encourag cement over the future
In the iron and steel trade producers and man
ufacturers practically finding 1t impossible
to meet the demands of consumers. 1t is IN
derstood that the quarterly report of the United
States Steel Corporation. which viii be made
public this week, will reveal net earnings of
nearly S40OO0000 within shade of the
record breaking figures reported in the second
quarter of the current year. This statement
also viii show untitled tonnage of approx
nately 100000. as of September So but
II is known that at present the untitled tonnage
is in the neighborhood of 100000. In the
first quarter of the current year net earnings
$50, ,634, 400. in the second quarter $40 1885,
OBS, and 1t is believed that the results for the
entire year will show a total Of about $3.50 OOO,-
600. These figures make unnecessary further
comment the position OF the iron and steel
industry. And the iron market is the barometer
Of trade.
While there was no great improvement in the
he
tons suggested the development in the not dis
tant future of easier feeling in the various
financial markets, especially in London and New
York 1t should not be assumed. however, that
the money market at this centre is about to
enter a long period of cheap rates for funds.
Indeed, in we'll informed banking circles it is
believed that We shall have a frner market
throughout the rest of the year. and posi-
bly, a. brief time Of stringency before jan
uary, particularly II the probable election Of
Mr.. Hughes should be followed by a tre-
mendous outbreak Of speculative activity
the Stock Exchange. The Bank of Englands
high minimum rate Of discount naturally has
affected the sterling market in New York, and
the strength impaired to exchange quotations
by the action OF the Bank of England in ad-
vancing its rate has not been offset to any
great extent by offerings Of cotton bills, which
IN the last week were heavier than III any pre-
cedng week in the current cotton crop year.
Nevertheless, It IS encoura ging TO know that our
exports of cotton are increasing and that our
general outward movement of merchandise is
large, for doubtless later in the season these
shipments will become more important factors
in the international money market. Rates for
call loans have ruled at a relatively easy level
in the last few days, owing TO the absence of
speculative demand. but there has been no
change in time funds and II is time money
which tells the story Of actual money market
conditions
Secretary Shaw's action in permitting banks
for all banks to be limited TO $1S.OO0OOO, will
not bring about weakness in the money mar
ks, for the good reason that the increase IN
circulation Will not be large enough 10 offset
the heavy demands for accommodation from
the West and South and the fact that national
bank notes cannot be included IN reserve hold
ings limits the credit facilities of the institu-
tons taking out the new circulation to the ex-
act amount of notes issued. While the deposit
Of cash by the Treasury with the banks would
increase the lending power to four times the
amount so deposited. Although the Bank Of
England made another poor showing last week
there was no further advance in the discount
rate. this doubtless being due to the belief on
the part Of the governors that conditions in the
next few weeks would improve to an extent
which would not warrant more than the 6 per
cent rate, with the possibility of a reduction
from that figure before the end Of November.
The demand for accommodation in all the for
Aierf7r me- Tl-e+s ia eS-ra .l,r