New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-01-29
THE WEEK IN WALL STREET.

THE WEEK IN WALL STREET.
7,-.,.,,.i,-,r ~, last weeks stock market were
active in volume on movement OF Nslues ma
showed great irregularity. and which win Vhe
helm of n sharp decline I'm Saturdays uauins'
resulted IN net losses in the greater numoel Vi
active issues at the close. 1rregulaIiOS wac
due Ia realizing sales. which at times "e'e
heavy enough force quotations 10 ~
level. but on all declines offerings were reaully
absorbed and on the reactions strois supp
was forthcoming. The realizing sales lIulNa'S0
2 desire on the part Of many traders 10 N'l,'o''
,aner nrofts into cash and reflected at times
confidence on the part Of board room operators
to make quick ventures on the short side OF
speculation in the expectation Of profitable re-
srllts on their contracts There was nothing IN
the market however. thai encouraged the IDEA
that the moro important speculative leaders
had changed their position regarding the future
Of values Moreover, there was nothins III INC
situation governing the actual worth OF S7Su
rites v.bIcb warranted extensive operations on
the short side of speculation, hut or course' Ni9
fact that prices had advanced almost uilH'eI-
r,n+ad1,, for many months suggested to many
minds the wisdom Of taking profits al prey an
ing prices and accommodating stocks on reac-
rions A large amount Of this kind OF business
is now being done, and it is quite evident that
traders will exert every effort to make their
turns on the short side profitable. In a num-
her Of cases new high record prices were made.
and among the leading issues the only impor-
taut weakness was recorded in the case OF
Reading. which. after reaching a price OF 1914 in
TUESDAYS market declined before the end OF the
week more than IS points under that level
Weakness in this issue apparently was due to
the fact that a number Of operators were over
loaded with the stock and were compelled to
III mar lypT a
the lower price established by the stock at the
close Of the week the issue was not considered
cheap.
The question Of the proba BILE duration Of the
current bun movement in securities apparently
is not being seriously discussed in Wall Street as
the greater number Of operators believe that
transactions for higher prices will continue for
many months to come. and that outside of pass
ing speculative reactions there Will be no ma
tcrial change in the course Of values, which FOR
so many months have been moving toward bet
ter quotations. While It is admitted that many
issues are selling at a level which fully meas
ures their investment value. it is freely ad-
mitted. even by the most conservative people
in the Street tina: conditions governing the
market are SO extraordinary. including the
enormous wealth Of the men who are espoused
10 the bull side that sustained bear cam
paign could only he brought about through the
development Of an extremely adverse situation
i'm money and business. Activity is not confined
to the high grade issues. The cheaper stocks
are becoming more popular owing TO the in
crease that IS taking place I'm the value of the
equities I'm these securities. and it is believed
that much higher figures will be quoted in this
class Of stocks in the near future. While there
! has been d large amount Of liquidation in such
shares as St. Paul Union Pacific, AmalGamated,
Anaconda and United States Steel preferred, the
bulk Of the holdings of the big market dealers
who have been the chief factors OF the upward
movement remains intact. The character of the
recent buying in Union Pacific has suggested the
probability Of q higher price for this issue espe-
cially as the buying IS based on genuine i'm
provement in the actual value Of the security.
II is quite generally believed that a large
amount of Union Pacific stock has recently
passed into the hands Of the so-called Morgan
Hill interests. A feature Of the week which
attracted considerable attention and no small
amount OF favorable criticism in Wall Street
was the published plans of the big traction
merger by which all the local transportation
companies in Manhattan and The Bronx will
come under one control. The terms Of the
merger are considered fair to the present holders
Of Interborough and Metropolitan stock. and in
view of the enormous work involved in effect
ing the organization Of such a size as the new
company will he the amount Of stock set aside
II the plan had been. originally proposed.
turned over to an underwriting syndicate. the
stockholders would not have Jared so we'll as
under the terms which have now been submit
ted.
Money market conditions at this centre have
grown more in favor Of the borrower while
throughout the country greater ease is reported.
owing to the return Of crop money To the lead
ing financial cities. The movement Of currency
to New-Yorll last week was moderately heavy
and It is expected that the volume Of receipts
in the next few weeks will be large enough to
bring about important expansion in bank re-
serves. At present the reserve above legal re-
ouirements Of the New-York Clearing House
banks is large enough to permit relatively
easy market for money, a reflection Of which
is presented by the decline in rates for call
funds and the easier tendency Of time funds
rates for the latter last week moving to a basis
OF AZ to ; per cent for periods Of from thirty
days TO three months While the local banks
Will not receive much assistance from the
| Treasury in the balance Of the winter. they will
have ample supply of funds to meet all re-
quirements, and IT is extremely improbable that
| there will he change in conditions adversely,
affecting rates until the early part Of the sDrine
| at least.
In the European capitals money is still he
| low the level prevailing in this country. and
! just as long as rates here prove attractive 70
| foreign capital II is not likely that inonortar+
amounts Of gold will be shipped abroad. There
| is no urgent necessity for increased s1pnIies ~
| the precious metal in Europe, and it is there
| fore considered improbable that the United
| States Will be called upon to send gold n tho
! foreign capitals until rates for funds in tba
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