New-York tribune., 1906-06-25
THE WEEK IN WALL STREET.

of the trading Alternate periods Of strength
and weakness developed, with no sustained Ten
dency in either direction. final quotations Hal-
ur6av showing in the greater number of issues
unimportant changes as compared WIN 'iie 0io'
ing figures of the preceding week Stocks ap-
pear to recover easily on all declines whlle tie
advances are quickly followed by renewed SELL
ing pressure which suggests. for the time be-
ing that heavy liquidation is under way fup-
lie traders evince little or no interest IN Ile
dealings and herein may be found the reAsoIi
for the failure of prices to MAINTAIN IheIr Ia--
lies; but IL may be we'll to note the Iact uld'
traders favoring bear speculation show no Will
ingness TO remain short for any length OF llihe'
rushing 20 cover with small prohts TO 'helr a0-
count Too many uncertainties apparently e@-
tst 70 create outside confidence in the market.
especially as in the greater NUMBER OF cases
stocks are quoted at figures which adequately
measure their intrinsic worth. Uncertainty over
,oonev uncertainty over the final outcome of the
crons long range views Of the fall Congress
election results, timidity on the part or invest
ors To buy CORPORATION securities, as result OF
government activity in bringing 10 Asht the
had conditions existing in certain or the couh-
try's large transportation and industrial co1l
Germs are among the factors which offset as
market influences the splendid condition OF the
nations business the increases in DIVIDENDS anu
the growing confidence among foreign caplOaA-
,s+s in American securities The great success
of the Pennsylvania's Paris loan' tne pidciiie s
of the Baltimore & Ohio common stock on a
nor cent basis. the declaration Of an initial
dividend on American Locomotive common ana
hat,ar weather reports from the crop sections
oF tho country were followed by brief periods or
strength in securities but enough realizing and
professional pressure developed on the rise 10
prevent more than temporary Improvement
Stocks are in strong hands, and from present IN
dications they will stay there for some uIle u
come unless holders are compelled to sacrlnce
them. The market is still congested with new
sacurities a reflection OF which is presented in
the announcement that the Chicago. Burlington
& Quincy syndicate formed in 1914 10 nnahce
an issue of the companys Illinois DIVISION rs
will soon dissolve, with large amount Oh the
bonds still In its hands, which will be appor-
toned among the individual members
Call money rates were relatively easy in the
last week owing more to the absence of an ac-
tive public demand for securities than to any IN
crease in the supply of funds at this centre. the
fact that time money was firm indicated more
accurately the real position Of money than DID
the ease in the call department. and it was
thought that the strength in time funds fore
shadowed a firm market throughout the sum-
mer, Notwithstanding the idea held In some
quarters that money must be cheap this year
Just because II has been cheap in other years at
this particular season. Call loans doubtless VIII
rule firm in the balance of the month. owing to
the preparations which must be made for the
July interest and dividend disbursements. and
unless there should be large increase in the
hank reserves In the course Of the next Few
weeks the local loan market will be compelled
10 depend in great part on'foreign capital winch
will be lent in this country through the medlun
Of finance bills Already considerable supply
Of capital represented by finance bills has been
placed in New York. and this. together with Of
ferings of bills against payments on the Penn
gyivania loan. has served TO weaken exchange
rates, which are now ruling quite near the gold
importing point With an easier tendency in
money rates abroad and f1rmer figures here. it
is natural that foreign bankers should invest
their capital temporarily in the United States,
and the placing of foreign capital here Of course
reflects the high credit which the United States
has abroad
The Pennsylvania loan will be paid in monthly
instalments. and the payments. which will be
made by the actual importation of gold or
through the medium of ordinary exchange trans
actions. will be factors of some Importance in
the local money market. Pennsylvania loan
generally is accepted as a bull argument on
stocks. but the fact that the prices of most is
sues are selling high tends TO minimize the ef-
feet Of favorable developments on securities
quotations This was reflected in the course of
values last week which enjoyed only temporary
Improvement on the various favorable announce
Tnents. including a number of increased divi
dends declared, as, for instance. that the Bal
timore & Ohio. The action of the Baltimore &
Ohio directors in increasing the dividend on the
efO IN a G b9 SiS is r
wanted by the present physical and financial
condition of the property. and the same thing
may be said of other roads and corporations in
general which are contemplating making
increased disbursements TO their stockholders
and OF placing in the dividend column stocks on
which dividends have been suspended or on
which dividends never have been paid The in
creased Baltimore & Ohio dividend will bring
more money TO the treasury of the Pennsylvania
company, inasmuch the latter road owns a
large amount of Baltimore & Ohio stock, and
Pennsylvania this year viii enjoy as a conse-
Quence of increased dividends on stocks owned a
notable increase in its income from investments.
1t is understood that Norfolk & Western will be
advanced to a per cent level, and efforts which
are based on excellent reasons are being made
to induce the directors of the Chesapeake & Ohio
TO increase the rate on the stock of that COM
pany. Pennsylvania is a large holder of Norfolk
& Western. and with New York Central practi-
cally controls Chesapeake & Ohio.
Iron and steel trade centres were somewhat
upset IN the last week over the cutting of
foundry iron prices by Southern producers, but
in the best informed quarters II was not consid-
cred that this movement reflected actual trade
conditions. The agreement between the South
ern iron companies Gas broken, and price cut
ting naturally followed, especially as the vari-
GUS concerns were somewhat overstocked II
is not improbable, however that the demand for
iron will fall OFF in the summer months incident
70 the usual develontnent Of dnness In all Lines