New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-12
THE WEEK IN WALL STREET.

by a sharp drop n values IN last Mondays mar
ket was followed by dulness. with unlmportant
price movements IN the following two days.
while IN the last part OF the week there vas
resumption OF activity the bull side OF specu-
letion which was effective in bringing about ma
teriaI improvement IN quotations Opinion dif-
fers. however. IN speculative circles as 70 the
chances OF active resumption Of the buying
movement which eliminated a month or more
ago. While there has been q tremendous
amount OF liquidation IN stocks in the last few
weeks, II is known that there are still number
Of overloaded bull pools and that the greater
number Of conservative bankers are not in favor
OF advancing values at this period. Neverthe-
less, II should be borne in mind that enormous
profits were made IN the recent bull market by
who already were unusually wealthy and
II is not unlikely that this element is again
anxious to increase its supply Of funds through
the medium OF an upward movement in securi-
ties. This party Of spectators is exceedingly
powerful, and its presence IN the market is a
factor which should not be lost sight Of. Evt-
IDENTIFY large purchases were made for the &C
count Of the substantial interests on the break
in Mondays trading. but there was little indt-
cation of an active public support, the advances
following the weeks early decline being due IN
great part to a natural speculative rally based
on the covering Of short contracts and efforts by
the larger spectators 10 bring about higher
quotations
Improvement in the money market situation, !
Of course, was a factor which created a more
cheerful sentiment in speculative circles, while
the feeling that rally was due irrespective OF
all outside considerations naturally tended to
change sentiment in favor Of higher figures.
The advances made in the latter part Of the
week more than made up the losses which were
sustained in Mondays decline, but the closing
level Saturday for the greater number Of issues
well under the high figures of the year.
which were made in January. Twenty leading
active railway issues at the low point last Mon
day averaged 1854. while at the end of the !
week there had been a recovery to above 131,
which compared with 1886, the record level in
January's market It limited at the close
Of the week in certain quarters that quite a
number of operators were still committed to the
bear side OF the market, and that there were
several large bull accounts on which attacks
would be made in the hope OF bringing about
further liquidation. but the general idea in com
mission house circles appeared to be that for
the present at least liquidation had run its
course. There is nothing of an adverse char
acter in conditions affecting the actual value Of
securities which warrants the least uneasiness
the part Of investors, while even the uncer-
taton against corporations life insurance inves-
legations, coal strike possibilities and firm rates
for money do not necessarily mean panicky con-
ditions in the speculative markets. Perhaps the
decline IN values from the high points of the
year has discounted all these uncertainties A
factor in the week which also helped to create
bull sentiment was the decline in the price Of
wheat the movement rejecting the excellent
position of the winter wheat crop
Although the reserve holdings of the New
York banks small, the general position of
money is sound. and there is no indication that
there will be disturbance in financial circles this
spring. In the last week conditions appeared TO
be moving in a direction which VIII prevent
stringency at this centre foreign exchange rates
declining TO level near the gold importing point
while foreign bankers were liberal lenders Of
funds in the shape of finance bills Just as long
as loan quotations rule at firm figures European
owners of capital will be glad to place their funds
In this country. and If there should be q cessa-
ton of foreign lending IL would either represent
a decline IN rates in New-York TO a level under
those prevailing abroad or else acute disturb
ance in Europe. which would induce foreign
bankers 10 keep their money at home. There
appears 10 be little chance. however of the de-
velopment of disturbance in Europe. inasmuch
as satisfactory progress is being made at the
Algeciras conference. with every indication of
successful and satisfactory agreement 10 all the
powers concerned. The movement Of the for
eign money markets in the last few weeks has
reflected absolute confidence on the part OF
British. German and French bankers in the be-
lief that there will be political trouble as
result of the Moroccan situation. If there had
been any uneasiness abroad rates for money
would have advanced. while there would not
have been active foreign lending at this centre
A drop in sterling exchange in the last week of
upward of over one-quarter cent on the pound
was considered 10 be directly due 10 the improv-
ing political situation in Europe
While the local banks have received all of
their proportion Of the amount of money desig-
mated by the Secretary Of the Treasury to be
placed in depository banks. money rates have
not been affected inasmuch as the sum paid by
the government to the banks has been offset by
heavy losses by the Clearing House institutions
on their operations with the Sub-Treasury. The
demand for money al all interior points is ex-
csedinzly active and rates for loans in the lead
ing centres outside of New-York are ruling as
high and in some cases higher than the quota
tons at this point. and as a consequence there
Is no inducenent for interior banks 10 send their
funds here. Expansion in the cogntry's indus
tries is proceeding at pace which requires the
EMPLOYMENT OF a large amount Of active cash
and il IS not improbable that the strong demand
in this city for currency will be heavy enough
70 reduce the holdings of the associated banks
10 a level which will demand repIenishment
through shipments of gold from Europe. The
recent large decline in stock market values has
attracted moderately heavy purchases Of our Sc
curities for European account and this factor
with the large excess Of merchandise exports
over imports naturally influences the foreign
exchange market in favor Of this country The
fact that the United States will be able 70
draw gold from the other side Of the ocean in
the event of stringency in money ought to i'm