New-York tribune., 1906-05-07
THE WEEK IN WALL STREET.


movements OF values. One unimportant failure
was announced. The general position OF affairs
was not injured by the reduction in stock quo
tations; indeed. as far the speculative situa-
tion was concerned. conditions were vastly i'm
proved by the liquidation of overloaded pools
and weak Individual holders. Selling OF the
high grade issues included a large proportion of
actual investment sales, the movement repre-
senting operations for the account Of interests
who were compelled 10 convert securities into
cash. owing to the urgent necessities developed
by the San Francisco disaster and by investors
who were disposed to use their funds in the
money market in the expectation of being able
to reinvest in high grade issues at a lower level
of quotations Through the recent depreciation
in Stock Exchange quota tions the yield first
class issues to buyers at present figures has
been materially improved, and if further de-
cines take place it will be possible to secure good
stocks that will returp from Az to more than
5 per cent. Indeed, already list of sixteen
active issues. mostly preferred securities. name
": Atchison preferred. Baltimore & Ohio pre-
ferred St. Paul preferred. Erie first, Denver pre-
ferred Illinois Central Louisville & Nashville.
Manhattan 500" preferred. New York Cen
trail Pennsylvania Reading first preferred.
Southern Railway preferred, Southern Pacific
preferred. Union Pacific preferred and Western
Union show an average yield of more than Az
per cent. With time money at its present price.
however such securities Great Northern and
Northern Pacific are high. and 1t is not likely
there will be an active investment demand until
there has been more of a readjustment between
investment values and money rates. After the
liquidation Of the first four days of the week
values in the last two days recovered a part of
their losses under the influence of speculative
buying a movement which was helped by the
Presidents message accompanying the report OF
the Commissioner of Corporations on the Stand
ard Oil Company. There was nothing in the Pres
ident's message to which Wall Street could take
exception. His recommendations were in line
with sound business sense. and his ideas re-
garding a closer government supervision of cor
porations doing an Interstate business. if car
ried out. will tend TO conserve the value of
American investment securities. The announce
ment Saturday that the coal miners would re-
turn to work under the award of 1903 was an
important factor in inducing bull operations at
the close.
While conditions in the money market last
week were not favorable to the operations Of
spectators who are anxious to bring about
higher prices for stocks and commodities. there
were no developments in the monetary situation
which foreshadowed disturbance at this centre
nor was there any factor which warranted the
belief that the after results OF the San Francisco
world In the future. Indeed. the ease with which
this country was able to draw gold from Europe
in order to satisfy the demands for the Paclho
Coast impressed hnanciers and business men in
general with the stability Of affairs in this
country, and the probability Of further expan-
sion in the general industries which are so de-
pendent upon the money market The urgent
demand for funds from the West showed some
signs Of slackening at the end Of the week, but
it is not unlikely that the inquiry for money in
connection with the re-establishment Of San
Francisco on a business basis will be an i'm
portant influence in money for long time to
come, and it therefore is improbable that rates
for loans will rule at an easy level in the balance
of the year except perhaps, for a brief period IN
the summer Assuming that the United States
will enjoy a year Of bountful harvests money
will be in great demand in the fall OF the cur
rent year, but fortunately through the emer-
gency measure adopted by the Secretary Of the
Treasury in the matter Of gold imports Ne"
York is placed in a position TO maintain its bank
reserves at a level which will prevent the dis
turbance which otherwise might develop. since
the beginning Of the current movement OF gold
to this country there has been engaged over
$40, 100000 and in the same time there has
been shipped to San Francisco more than $34'-
100000 While the banks in the stricken city
have large sums in their vaults they have been
unable to use much of this money so far' ana
In expectation Of an active call from deposltors
on the full resumption of business they have
strengthened their resources through the help
Of the Eastern markets. and as consequence
no trouble is looked for when the vaults finally
are opened and depositors begin to withdraw
their funds either for investment in San fran
cisco or for shipment to otner places
Naturally the heavy pressure in London for gold
effective
bringing about frmer discounts in the British
capital. an instance Of which is presented in the
advance in the Bank Of Englands minimum rate
of discount. a movement most unusual at this
period Of the year. Notwithstanding the rise IN
the Bank rate there apparently is no prospect OF
an immediate end to the gold exports from Eu-
rope to the United States especially as european
capitalists active buyers OF securities IN
New York This movement tends to depress the
rates for foreign exchange, and II is interesting
to record the fact that in the last week enor-
nous amounts Of securities were shipped from
New York to Europe representing actual invest
ment purchases for the account of foreigners
While there is no certainty that future Secreta-
ries of the Treasury will adopt the method
ployed by Mr Shaw for the relief Of the money
market 1t is extremely gratifying to know that
at present the country has man at the head Of
the Treasury Department who is endowed with
common sense and business ability, and who Is
not afraid to adopt extraordinary measures in
the face of some hostile criticism which, in his
belief and in the belief OF the most experienced
bankers. viii tend TO conserve the business in-
terests OF the country. II It had not been fol
the help extended to the money market through
the deposits OF government gold with the banks
pending imports of the metal. the San Francisco
earthquake and fire undoubtedly would have
caused panic in the money market OF
this country. Though rates for loans high