Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-05-27
Financial News Letter
BY W. G. NICHOLAS.

NEW YORK. May &c, 1905
Where are the stocks?' is the question
that is again puzzling Wall street. Com
mission houses have fewer stocks than they
had forty and sixty days ago, yet, We hear
every hand that the public is taking
no interest in the market and that the in
vesting class did not generally avail itself
of the smash in prices to buy up securi-
ties when they were overcrowding the bar
gain counters An immense mass of stocks
came out on the slump. weak and timid
holders being shaken or frozen out by the
thousands. The stocks thus dumped were
neither thrown into the sea nor burned up.
They went somewhere and the future Of the
market hinges very largely on the ques-
ton of their present location.
An analysis of the bank statements show
very clearly that the bulk of these securi-
ties. so precipitately unloaded, are still
being used collateral for loans in the
city. The strong people, who came to the
support Of the market when things looked
psnicky, still have the goods. They have
lightened their load somewhat on the sharp
rally from inside prices, but they are sun
under the burden. 1t is for the future
to disclose whether this great accumula-
ton of stocks is to be lquidated on
lower level than that now prevailing or
successfully distributed on some later
boom.
1t is entirely safe to say that the pow
erful interests on the stock market will
bend their energies to the making Of a
higher market To this end they are shap-
Ing the money market, SO as to make 1t
as easy as possible for spectators to OBJ
tain funds to carry on their bulllsh cam
paigns. Vast sums of gold have been inn
ported from Europe and the old world
reservoir of precious metal will be FUR
Their drawn upon If necessary. Time money
has been beaten down to 8 per cent and is
none too strong at that rate. Call money
Is approaching per cent and cheap sum-
rate is promised. The right people
have no trouble in making satisfactory ar
rengements for funds as far ahead as they
care to commit themselves. There will be
use for every dollar OF available money
In the manifold activities of the general
business situation, but through 1t all Wall
street will be looked after on a generous
and liberal scale.
For once the Standard Oil and the Nor
gan factions are working in harmony. Both
would like to see the stock market go high
er Both have stocks to distribute and
both are heavily interested in the fotation
of hundreds of millions of dollars in new
issues of bonds. some wholly und1gesfed
and some only partially digested. With
these rival elements pulling together 1t is
reasonable to assume that there Is at least
q fair prospect OF sustained stock market
during the summer months. Good crops
will nightly aid this hopeful program.
There is already assurance OF continued
high-pressure activity IN the Industrial
world, and conditions seem to be satisfac-
tory In the mercantile field. AS for the
railroads they are one and all doing
stupendous carrying business to offset the
good features of the situation. 1t is timely
to enumerate the continued graft expo
sures which tend to shake confidence In
honest corporate management; the APP
preaching political campaign with the at
tendant agitation for municipal ownership
and tariff revision: the immense volume OF
new bonds pressing for sale and the wide
spread tendency to engage in miscellane-
Gus and unsafe speculations. There Is
sides and to enlist the active efforts OF
bears and bulls alike The outlook Is for
an interesting summer season. although at
times the market may get narrow. 1t is
not likely however that the picture will
lack vivid coloring for long at time.
81
A great deal of American money is still
pouring into Cuba, Mexico. Central and
South America. These countries ofrer
amazingly attractive openings for capital,
and advantage is being freely taken of
these opportunities. Cuba alone has alb
sorbed about 1920 600, 600. The biggest sin
gle chunk Of money was put in by Sir WILL
liam Van Horne and associates, who have
already invested about S23 100000 In the
construction Of railroads on the island and
In the development OF resources along their
lines. 1t Is probable before the plans of
the Van Horne syndicate are completed they
Trust has SIS 100000 to $20O00.O00 in Cuban
sugar plantations and refineries and has
hardly commenced the development OF its
resources In that direction The island fH
ideal In the matter OF climate. soil and
location for the raising of sugar and OF