New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-19

were made up in great part Of the transactions
/ Of the professional element, the demand Tor
stocks from outside sources being limited 10
small proportions As a rule, price changes
were confined to unimportant figures and at the
close Of the week the general average showed
/ little difference from that Of the closing level
in the week before. twenty Of the active rail-
way issues ending ut a trihe above 1870, com
pared with l3OS8 in the preceding Saturday
while in the industrial issues slightly greater
loss was recorded. Weakness in the industrial
, shares. however, did not reflect adverse develop
ments in the business world, the declines being
due more TO the speculative position Of the
stocks than 10 any factor outside the STOCK
Exchange. In Consolidated Gas there was some
selling due to spectators forebodings over the
possibility Of a cut in the dividend rate as a
result Of so cent gas while in Peoples Gas at
Chicago liquidation was traced TO the uneasi
ness of spectators over the Supreme Court
decision affecting the franchises Of the Chicago
Union Traction Companies, the speculative
theory being that a similar decision might some
day be rendered against the Chicago Gas con-
Germ. While the ruling Of the Supreme Court
regarding the franchises of the Chicago Trac-
ton Company was effective in bringing about
a severe reduction in the market values Of the
conpany's stocks. the general list Of securities
was not adversely affected and there was no
suggestion in the character of trading Of alarm
on the part Of investors over the growing ten
dencv of the people as represented by their
courts and legislators to check the Srasping
propensities Of corporations. Legislation and
court decisions which Wall Street spectators
are Worrying over are not aimed at vested
rights: indeed. the intention is to preserve and
strengthen the position Of American investment
securities.
The quieter tendency which has developed IN
the stock market. coming at time when none |
tarv conditions are unfavOrable to speculative :
activity. will serve to protect the Wall Street |
situation and to place the stock market In a |
position which later on in the season doubtless |
will encourage a resumption of activity on the |
local exchange. Statistics showing the ChaTac- |
ter Of current business in the United States !
present no feature upon which investors can find !
reason for parting with their securities but this
fact, of course, does not insure the market |
against further speculative attacks by traders |
who are anxious to bring about lower range |
Of values The prospects, nevertheless, Of heavy |
liquidation do not appear bright, for the reason |
that in the last six weeks there has.been active
shifting Of speculative accounts, accompanied |
by a severe contraction I'm prices, the latter |
movement having brought quotations TO a level |
more in proportion TO the actual worth of Sc
curities Weak pools and lightly margined spec
ulative accounts for individual traders have in /
great part been eliminated while stocks have !
become more strongly intrenched in the hands |
Of powerful financial interests This is a fac
tor which should be taken into careful consid- !
Grafton in discussing the stock market outlook, |
for It is strong argument against the ideas Of |
some people, who apparently believe that the |
range Of stock market values is on the down
grade and that the decline which followed the |
elimination Of January's bull boom will run on |
for an indefinite period. 1t is generally believed
In the best Informed Wall Street circles that &C
tivity on the Stock Exchange for a number Of |
weeks to come will be confined to the operations |
OF the board room element and that barring |
adverse developments in the outside situation. |
there Will be no extensive liquidation.
Money market conditions at This centre. while |
somewhat more favorable than they were a few |
weeks ago, do not yet suggest the probability |
Of the development Of cheap rates for loans in |
the immediate future An active demand for |
funds prevails throughout the country, and. now
that negotiations practically have been COM
pleted for a large Russian loan. there IS less |
probability Of extensive shipments Of gold from
Europe 10 this country than there was earlier
in the season, though the chances are that in /
the event Of an actual need for foreign assist
ance the local financial institutions will be able |
TO secure enough Of the metal to prevent dis
turbance in the monetary situation I'm the United !
City Bank Of S1,25OOOO gold in London has
been followed by a strengthening in discount |
rates IN the foreign capitals and the development
Of antagonistic spirit on the part of London
bankers to shipments Of the metal to this side
Of the ocean. Nevertheless. this country is in
a remarkably strong position on international
trade account. and, as loans made here bv for
eigners will not mature for some time to come .
the large exports Of food products and general
merchandise may be effective in compelling pay
ment in gold by foreigners of their obligations
due the United States on trade account.
At the moment. however. exchange rates are
not favorable to gold imports though it is not
considered unlikely that i'm the event Of fur
Their strengthening I'm local money rates sterling
will decline to . point which will make posi-
bic additional shipments OF the metal to this
side Of the ocean. Just at present there is no
actual necessity for gold imports as notwith-
standing the low position Of the reserves Of the
local banks, there is an ample supply of money
in the country for all the legitimate demands
Of trade. Strength I'm money doubtless viii con
tnue for some time to come to check activity on
the part of stock market traders and il is not
unlikely that i'm the absence Of aggressive buying
of securities prices will exhibit a sagging tend
ency. though no further extensive liquidation is
looked for. OF course if there should be some
untoward development affecting the country's
Industrial activities liquidation a large scale
would result but at present there is absolutely
nothing in the general situation which suggests
an adverse change in the course OF business.
Railroad earnings now coming to hand show
the best results ever recorded at this period OF
the year. while the bank clearings also continue
to establish newshigh records. According to the
I {yed at b,-t III