New-York tribune., 1906-04-02
THE WEEK IN WALL STREET.

advances, as compared with the final figures or
a week ago. Though vigorous efforts were made
by number of aggressive traders 70 bring ABOUT
an acttve public buying movement, the demand
from commission houses was exceedingly hght
and there was nothing in the character Of trad
ing which suggested the development in the
near future Of big public inquiry for securities
While conditions affecting the intrinsic value Of
American investment securities are sound, there
are a number Of factors in the present situation
which discourage speculative operations for out
side account. while they also check activity
on the part Of what may be called the conserva-
tive element in the Wall Street community. The
developments in the coal situation, the strength
In the money market, the approach Of the time
when discussion will begin to take into account
the years harvests. the agitation against cor
porations and the disclosures which recently
have been made Of misdeeds by corporate Off
and directors are not calculated to create
enthusiasm on the part of people who have
money TO invest. especially stocks already are
selling at a level which in the great number of
cases adequately measures the investment value
OF the security. OF course this fact is not seri-
ously considered by speoulators where they are
intent on bulling prices, and IL they find that
there is a public response TO their efforts at
present they doubtless will cast aside all consid-
erations such as those just mentioned April
4ullo OIl6u witnesses DuiI movement III bn6
stock market. and the Street is now filed with
all manner Of talk regarding the possibility of
active upward wave in the current month.
a hardening of money rates last week was
due In great part to the arrangements which
were made to handle the April disbursements,
and the high quotations which were recorded
Thursday and Friday were not indications of
the actual monetary situation. Nevertheless,
rates for loans undoubtedly will rule at a firm
level for a number of weeks, and possibly for
several months. owing to the active demand for
accommodation in the mercantile world. to the
financing OF the requirements Of the agricultural
community and to the steady loss by the banks
on their operations with the government Gov
ernment receipts are running in excess Of gov
ernment expenditures and at the present time
there is a surplus Of receipts over payments
since July 1 of over S3,GOO,OOO. compared with
a deficit IN the time in the preceding year
OF upward Of S25,000O00. and it is likely that in
the balance Of the fiscal year the national reve-
nues will continue 10 run heavily in excess of
expenditures In view of the fact that local
bank holdings are low at a season of the year
when outside demands are heavy, it readily may
be seen why protracted period of easy money
should not be expected despite the fact that
foreign lenders are willing to place their funds
here while the foreign exchange market is about
the yellow metal were engaged last week for
shipment 10 this country and though it is prob
able that additional imports viii be made. the
relief secured from this source undoubtedly will
only serve to offset the Withdrawals from the
New York banks, so that money rates will not be
in a position TO seek lower level. In the cur
rent week call money may return to the 4GD5
per cent range which has prevailed for long
time, inasmuch as the supply of funds available
for lending purposes viii be increased through
the return to the banks of the checks for the
dividends that ara payable in the first week or
April.
wan Street Is counting upon liberal purchases
Of American securities for European account and
on liberal loans by foreign bankers, and it is not
unlikely that the investment demand abroad for
our bonds will increase and that foreign lenders
will continue TO place money here just as long as
rates in New York rule above those quoted in the
European capitals. The Bank Of England made
no change in its discount rate last week, but
there was a hrTner tendency in open market dis
counts in London. Paris and Berlin, notwith-
standing the outlook for a speedy and favorable
settlement of the Moroccan affair. II was
thought that after the announcement that all
the important points at issue between Germany
and France had been arranged there would be
great enthusiasm in the foreign markets and
easier rates for money, but to the disappoint-
ment Of spectators there was no important re-
hection Of the event the foreign bourses.
Foreigners, while willing to lend money here
through the medium of the foreign exchange
market, are not favorably disposed toward gold
shipments to the United States, and apparently
they are placing every obstacle that they can in
the way Of big movement to this centre With
the exception Of the National City Bank no local
institution has been able so far to secure any of
"a al ob a,,5 81
ceptionaI facilities Of the City Bank that II was
successful in securing small amounts There
Will be an ample supply of money in this coun-
try for all the legitimate demands of trade but
there may not be enough money TO permit stock
market SPECTATORS 10 carry securities on mar
gins at small interest charges
While conditions in the general business world
outside OF the coal situation are encouraging all
discussion Of the future Of business should be
qualified with the consideration that in the
event Of prolonged disturbance in the coal fields
the industrial activity Of the country may be
seriously checked The idea is growing, how
ever. that, owing to the tremendous interests al
stake the cessation of mining will not be per-
mitted TO continue for any length of time and
that way will be found to settle the differences
between the operators and miners before the
general business OF the country has been ad-
versely affected. The men in the Wall Street
community quite confident that arbitra-
tion committee appointed by the President Of
the United States VIII be agreed to by the mine
owners and their employees. and that the award
Of such committee viii be accepted by both
sides. as was done in the coal strike Of three
years ago. While there has been a certain
amount of dulness In some lines Of the iron and
steel market. tonnage continues heavy and new
orders have increased in the last few days. The
steel rail business is enormous and is the bright
est feature Of the steel industry The demand