New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-05-21
THE WEEK IN WALL STREET.

,d ,r-ee7,Iaritx, in prices which left quotations
at the close little changed in the greater num-
Der OF issues, as compared with the maj nSuIeS
of the week before. Absence Of active commlS-
sion house buying at the high prices estaDIsheo
a week ago and the apparent Willingness OF the
larger interests to discourage further operations
for the rise served to induce considerable press
ure against values by the trading element. but
on all declines stocks appeared to be well taken
and the shorts were not willing to make long
time commitments. The fact that there is no
great activity among commission houses does
not necessarily mean that quotations gradually
will seek lower level, but evidently 1t fore
shadows period Of inactivity especially as the
season is approaching when uncertainty over
the years harvests will develop. stronger
wheat market at the end of the week reflected
adverse reports from certain sections of the
agricultural community regarding weather con-
ditions, but from the advices received from
officers of railroads that run through the farm
lands there was nothing in the situation to
cause alarm over the future of the important
cereals While It IS too early to speculate on the
probable crop yield. Wall Street houses believe
in suggesting caution to their customers until it
can be definitely ascertained whether or not the
country is to enjoy another year of agricultural
prosperity. The announcement that tho Penn
syIvania Railroad had sold $5O0OO.O00 Of short
time notes. and that further financing would be
necessary in order 10 meet the large payments
involved I'm the company's construction work
now under way, was factor which apparently
helped bear operations in the week, while the
disclosures Of rebating and what may be called
petty graft in certain departments of the COM
pany exerted a bad effect Wall Street send-
n1ent. Coming so soon after the insurance
scandals, evidence of the employment Of i'm
a.,
country naturally is bound to dampen for time
Wall Street enthusiasm. 1t is understood that
the investigation by the Interstate Commerce
Commission will involve number Of other large
companies and it is limited in Wall Street that
as the investigation proceeds there will be worse
revelations than those developed in the inquiry
over the Pennsylvania practices.
In the general position of affairs affecting the
country's business there is nothing upon which
may be based pessimlsm the part OF genuine
holders Of American investment securities
Though in some lines of trade quieter conditions
have developed, industries as 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
country labor troubles have been more pro-
nounced in the last few days. OF course, If the
years crops should turn out poorly. general
business for time might be affected but in this
connection it may be we'll to bear in mind that
the country no longer is dependent entirely upon
its farms for its material growth, although, of
course, big crops a big addition to the
wealth Of the nation. The demand for structural
material in the iron and steel market and for
steel rails continues on enormous scale and
according to advices received from the people
actively identified with the industry, there is
factor in the situation which suggests the
months to come while the fact that the railroads
are placing heavy orders for rails for delivery
in 1907 may be taken direct indication Of
the supreme confidence which the railroads of
the country have in the future stability Of gem
eral business. Proof Of the excellent condition
Of trade in the United States is furnished by
the large earnings Of the transportation COM
panies. which without important exception are
heavier than ever recorded in a corresponding
period. and the same thing is practically true
Of bank clearings. Another indication Of the
country's growing industries is presented in the
strength in the copper market, in which con-
sumption has practically run ahead Of pro-
ducuon. The increased demand for the metal
by manufacturing concerns has resulted in a
further advance in prices, lake copper now be-
ing held at 1873 to 10 cents pound electrolytic
at 1872 TO 1S$4 cents and castings at 1SA to 1872
cents. The idea that there are large hidden sup
plies Of the metal held for higher prices is grad
ually being dissipated. All Of the favorable
factors Of the situation do not necessarily mean
mat there is soon to be an active upward move
ment in securities but it does suggest the wis
dom Of holding first class stocks and bonds Of
American railroad and industrial companies.
The most important movement in the money
market last week was the resumption of trans
fers Of funds through the Sub-Treasury for the
! local banks to San Francisco. At the close OF
the preceding week it was believed the move
ment to the Pacific Coast was over and that
currency would soon return from that centre to
the East. and as a consequence further heavy
shipments naturally created disappointment IN
financial circles Probably the renewed demand
was due more to precautionary measures on the
part of San Francisco bankers than to an actual
need for additional funds. Naturally the banks
in the stricken city are anxious TO hold large
reserves upon the reopening of business. which
will take place May %, in order to be protected
against the possibility Of enormous Withdrawals
Of deposits. The general belief however, is that
there will be no general run on the banks, owing
to the fact that the long suspension of business
has afforded time for depositors to look at mat
tiers in q much different light from what they
did Immediately following the terrible disaster.
So far the Frisco banks have not avaied. them
selves Of the offer Of the government to deposit
S15.OO0,OOO Of government funds with them. and
this may be due to the fact that the money in
stitutions have not yet been able to make ar
rangements 10 turn securities 20 the gov
eminent in return for government deposits.
Rates for money in New York in the last week
did not reflect unfavorahle conditions In the local
banking position. although they did not fore
shadow the development OF a long period of
extreme ease in the loan market. Nevertheless,
both call and time accommodation could DO Sc
cured at much better terms than few weeks