New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-02-19
THE WEEK IN WALL STREET.

| While there have been important ADVERSE
developments in the situation affecting the III
trinsic worth of securities. sentiment IN specu-
Iative circles has changed from it's buoyanty
bullish condition of a few weeks ago " soiNo
thing akin to depression. At least. traders pro-
| fess TO have lost their confidence in the future
| Of values their attitude being based on the ioea
| of labor troubles. higher rates for money 'no
! possibility of dangerous increase IN ne" slo'h
| and bond issues. the chances of a winter wne''
crop failure. and various other FACTORS Which Ao
the time being twisted into bear arguments
on stocks These arguments serve the purpose
of the speculative element, which Is IN iaVor VI
lower quotations. but they fail TO convince hoiu-
ers of American investment securities that the
time has come to part with SOLID STOCKS anu
bonds Owing to the fact that many OF the
larger financial interests have disposed OF their
speculative holdings at top prices. and are now
entoying vacations in the South and in Europe
the trade element believes that the time Is ripe
for an aggressive movement on 'he shoiC eiuo
of the market and, as consequence II Is en-
deavoring to create the impression tnat cohoi-
tons no longer foreshadow further ousine''
prosperity in this country. 1t being fact' now
ever that the larger interests are not at the
moment working for higher quotations. IL Is
quite necessary for commission house operators
IN watch carefully the character of speculation
A"--O''
tide irrespective of personal convictions regard
ing the direction in which stocks ought TO move
The decline SO far has carried the prices or
twenty of the leading active railway issues from
the high record of the year at an average price
of 13S SO on January 81 to about 133 at the
close of the last week. while in the industrlals
there has been decline from the average hlsh
price of 103 on January 10 to about 9i1a IN
Saturdays market. It is quite generally beheVeo
that the decline will go further, and that the
bull movement will be resumed later on In the
season at a lower quotation level
The putting out of large stock and bond issues
is not bear factor inasmuch as II rehects the
confidence of railway and industrial corpora
tions in the future Of business. and indicates the
legitimate necessities of corporations. due to the
expansion which already has taken place IN the
country's Industrial activities. OF course. the
emission Of new security issues may be over
done but the majority OF our big railroad and
industrial concerns are now so we'll and con-
servatively managed that the chances are that
the present tendency of increasing capitaliza-
ton will not be carried to an extent which might
involve dangerous possibilities. The spirit
shown at the conference OF the coal operators
and miners last week suggests the probability
Of an agreement being reached which will be
mutually satisfactory, and at present. at least
there is reason for uneasiness over the out
look in the general field OF labor. AS to winter
wheat, it is too early to make predictions re-
garding the harvest, but it is well to bear IN
mind that stock market bears are taking a long
range view of conditions in the winter wheat
belt this view being based on weather condi-
tions which have prevailed in the East and
which have not been duplicated in all parts OF
the Western wheat territory. Notwithstanding
the settlement Of the copper mining war in Mon
tana and the increase in the dividend on Union
Pacific stock. securities moved toward a lower
level in the greater part Of the week. under the
influence of speculative liquidation and bear
pressure. The agreement between the Heinze
and Amalgamated interests means more for the
welfare of the copper industry in this country
than is recognized generally. and 1t is safe TO
say that the significance of this great develop
ment has not yet been properly reflected in the
quotations of the copper shares, despite the fact
that these issues. in expectation of a settlement.
recently enjoyed material enhancement. Union
Pacifc's increased dividend is a sign of the gen.
eral prosperity that prevails throughout the
country. and. of course 1t is a direct reflection
of the wonderful growth and brilliant prospects
of the Union Pacific Company. The assets of
the road are enormous. and earnings are far
above the actual dividend payments.
There was distinct change last week in
money market conditions at this centre. rates
for both call and time funds moving to a higher
level, while in the foreign exchange market
quotations for sterling declined 100 points, to
level well under the figures at which gold could
be exported from this country at a profit There
is now probability of gold exports this spring;
indeed. the outlook favors imports of the pre-
cious metal in the course of the next few weeks.
| Local bank reserves have been materially con-
tracted in the last two weeks. and as a result
borrowers in the call and time departments of
the market have been compelled to pay higher
rates for funds with the probability of being
forced to give even better rates before the end
of the spring season. While the higher quota
items for money at this centre may serve TO at
tract funds from out Of town. it should be borne
In mind that the demand for money at interior
! points is extremely heavy. and that the spring
requirements OF trade soon will become an active
! factor in the movement OF currency New-Yorl
| is not in position TO lose much money without
| disturbance I'm the money market and this fact
/ naturally encourages the belief that assistance
will be forthcoming in the shape of shipments of
i gold from Paris. Although London and Berlin
not in position to spare the yellow metal
| Paris is well supplied and now that there is no
| prospect Of new Russian loans in the immedi-
ate future Paris bankers doubtless will be will
| ing to send good sized amounts of gold TO the
| United States. The Bank of France in the last
year has accumulated an enormous supply OF
| gold, chiefly for the protection of the Russian
securities held by the French investors. and as
conditions in Russia have again become normal
the necessity for maintaining large supplies OF
| idle gold longer exists.
| The higher rates for money in this country
already have attracted foreign money which
| Of he