New-York tribune., 1906-06-11
THE WEEK IN WALL STREET.


the bull side of speculation. People identified
with prominent properties were buyers. their
purchases evidently being based on their desire
to bring about a higher range OF quotations In
order to make attractive market for forth
coming issues OF stocks and bonds. and the
success OF these operations was taken advantage
Of by traders at the close to realize profits on
barge lines Of long stock. Notwithstanding the
upward movement and the increased dealings
for the account of substantial dealers, the So
called public refused to take active interest
IN the trading. but 1t was believed that in the
event Of further material improvement in quo
tatons commission houses would enjoy a
siderable increase in their business for outside
account Conditions affecting the general situa-
ton were more in favor OF the advocates of
higher prices than reported in several weeks.
and the fact that the market was practically
under the control OF men who had large financial
backing encouraged the belief that, barring
adverse change IL the position Of business affairs
in this country, quotations would move to
higher level in the summer months. The fact
that many securities are selling at prices which
fully measure their intrinsic value is lost sigh:
OF In time of bull enthusiasm, and as a conse-
Quence the high figures now quoted for the
greater number OF issues do not preclude the
possibility Of further improvement. There is
indication that the so-called cheap issues
are being taken In hand by prominent operators
who doubtless base their transactions on the
belief that this class of stocks has not enjoyed
the enhancement TO which it is entitled by
the actual appreciation which has taken place
IN it's intrinsic value Equities IN the nom
dividend paying shares increasing in value,
and in time the low priced railway issues. which
are not at present in the dividend column, will
be in a position to make returns to their own
for Kansas & Texas. Colorado & Southern. the
Wabash issues, Erie and a number of the So
called specialties in which the character Of buy
ing suggested the probability of much better
quotations in the course of the current year.
Preparations being made to bring out
number of large financing plans affecting railroad
corporations. notably in the case of St Paul and
Wabash. The fact that bankers are now willing
TO engage in operations OF this character indi-
Gates growing confidence in the stability of the
financial and business situation. and the issue
OF stocks and bonds under such conditions
doubtless will prove to be bull argument on
securities in general. st. Paul is extending its
road to the Pacific Coast, and a large amount
Of money will be required by the company for
the completion OF this enterprise; the Wabash
company proposes to retire its debenture bonds
and TO raise a large of money for future
undoubtedly will soon be in the market for more
money; the New York Central it is believed
will be compelled 10 raise further large amounts
OF capital in connection with it's vast terminal
and extension plans, while the construction of
new roads and the addition to the facilities OF
existing companies which are demanded by the
growth Of the country will be prominent feat
ures Of corporate life in the moaths to come.
The financing of these propositions will involve
the of a tremendous amount Of money and
It therefore appears improbable that rates for
loans in this country will rule at cheap level
for any length of time in the course of the next
year.
Rates for money IN New York last week
did not reflect unfavorable conditions in the
local banking situation. although they do not
foreshadow the development Of extreme ease
Nevertheless. both call and time accommodation
could be secured at much better terms than
few weeks ago. this tendency being accompanied
by higher rates for sterling exchange and dis
cusson in financial circles over the possibility of
exports Of gold from this country. San Fran
cisco transferred a large amount OF money to
this centre making the total return movement
upward Of SIS, 100000 and OF course this move
ment served TO create a better feeling in fnan-
cial circles and offset as an influence on senti-
ment the gossip regarding the possibility of
shipments of the precious metal TO Europe Re-
garding the currency movement, outside of the
San Francisco operations. It should be borne in
mind that rates for funds at all Western points
are ruling at stiff figures, indicating good de-
mand for money and suggesting the possibility
Of no important shipments to the East in the
immediate future OF course If money at In
terror points declines in price under the New
York level, currency will move TO this centre in
order TO take advantage Of the better quota
tons here and IL there should be a large ac-
cumulation Of funds at this point, there doubt
less would be exports Of gold TO Europe. The
demand for remittance is heavy at present, but
there is no actual need in foreign capitals for
a movement OF gold from New York to Euro
pean centres. Accumulation Of funds in ezpecta-
tion of active demand for accommodate
in the fall is under way, and the banks
doubtless will do everything in their power to
increase their holdings at every possible oppor-
tunity. In the last month the amount OF money
in circulation showed increase OF more than
$23oo000o representing in great part the addi-
ton to the supply Of money from gold imports.
while compared with this time year ago there
increase OF than S135,0O0.000.
There is an ample supply OF money in the
United States for all the legitimate require
ments of trade. but It is believed that If the
demand from corporations reaches the heavy
amounts now indicated the available money re-
sources would be seriously taxed.
In the general position OF affairs affecting the
countrys business. there is nothing upon which
may be based pessimism on the part of genuine
holders of American investment securities
Though IN some lines of trade quieter conditions
have developed. Industries a rule are on an
exceedingly strong basis. with no indication of a
material setback in the near future. notwith-
standing the fact that in many parts OF the coun-
try labor troubles have been more pronounced in
the last few days OF course, If the years crops