New-York tribune., 1906-06-18
THE WEEK IN WALL STREET.

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declines that We're recorded in last weeks STOCK
market there were no developments in the
business world that reduced by one cent the
actual value of American investments. The re-
cent trading on the Stock Exchange has been
highly speculative Ito say nothing OF the pres
ence Of acute manpuation) for a NUMBER Oh
weeks. The leadership has not been or the knlo
that inspires confidence on the part OF the gem
eral public, and the unwllingness of the out
siders TO buy securities. the refusal or the con-
servative banking interests 10 encourage actiNe
trading and aggressive tactics of severai prom
inent operators on the bear side have served to
bring to grief the plans Of the spectators VINO
have INDUCED heavily in matched orders IN the
hope of carrying prices to a level at which they
could unload their holdings on the public. There
might have been a big bull movement in seour1-
ties if the San Francisco disaster had not oc-
CURED. The earthquake came at a time when
man proposed large things in stocks, but nature
stepped in and upset affairs in such manner
that liquidation became the feature of the situa-
ton rather than expected advancing market.
With the restoration of something like nor
NAL conditions in the stricken city. followed by
the beginning OF a return movement of funds
TO New York a number Of cliques and pools,
guided by speculative plungers. charged their
bull batteries, fired their guns. and, for time
helped by a natural reaction from the depression
incident the Frisco disturbance. carried all
before thana. But at the beginning of the move
rnent conservative observers believe that the
time was not propitious for a big bull market
their ideas being based the approach Of the
crop uncertainty period. on the condition of the
pubic mind over the disclosures in investiga-
tions of corporations and on the low bank
serves at this centre. And their view of the
situation has been justified by the course Of
trading in the last five days. Spectators put
up the market q few points after the natural
recovery from the Frisco slump had run its
course, but there was nothing to keep it up.
no buyers appearing. and hence there was a de-
cline which was accentuated by the strength
in the cereal markets. While the adverse crop
reports were grossly exaggerated, there was
enough known actual damage to encourage the
development Of bearshness on stocks and an op-
posite sentiment on grain. AS without large ex-
ports Of foodstuffs and cotton the United States
would always be behind in the matter Of for
eign trade balance, II is easy to appreciate the
sensitiveness Of Wall Street markets TO crop
damage advfces
The country needs big crops, and fortunately
the country is extensive that II can suffer a
large falling off IN production In one section and
produce enough in another section TO supply
home and foreign demands and just now there
is no reason TO suppose that widespread ruin is
10 overtake the farming community this year,
as the winter wheat crop is nearing
harvest time, with average yield promised
Cotton, which is the crop that brings the most
money to the countrys export trade shipments
in the fiscal year 10 May 81 amounted in value
to $3.50 25 500 against $40 022 54S breadstuffs),
is in good shape and promises an average yield
at least, and even If wheat. and other
cereals should not up to the normal this
bankruptcy. Poor crops will retard business
growth for a time and reduce speculative values
1fn rivVaiTo
than formerly tn the matter of stock market
purchases, and 1t exercises more caution evil
IDENTIFY having learned that when securities are
being buned beyond the level that measures
actual worth 1t IS good time TO let the other
fellow have the stocks. Most of the active issues
are selling too high to attract sensible buyers,
and in the long run it probably will pay present
purchasers better TO accumulate the low priced
railway issues, in which the equities are beCOm-
ing more valuable every day.
Outside Of the unattyactye quotations Of the
expensive Issues there is too much manipulation
10 make the market safe for the ordinary oper
ator. Reading has been moving under the in
iuence Of operations of this character. and to
some extent st. Paul, the latter's advance osten-
sibly being based the idea that the company
soon viii offer valuable rights 10 stockholders in
connection with financing its Western extension:
From what may be gathered from well informed
interests there is no immediate prospect Of any
announcement regarding new st. Paul securities,
and IT is likely that when the company COM
pletes its plans for paying for its line to the
Pacific Coast it will put out little more than the
authorized stock held in the treasury. Some
uneasiness is felt in banking circles over the
apparent lack Of progress of the Pennsylvania
Paris, the absence Of an official announcement
creating the belief that a hitch may have oc-
CURED and that the borrowing pennsylvania
corporation may be compelled to seek assistance
at home 4 failure of a Pennsylvania loan
abroad would doubtless exert a distinctly al
verse influence sentiment, especially as so
many other companies are planning TO make Dig
OF the $40. sos, ,766 shipped from the East to
san Francisco, 81. 100000 has been returned,
and il is the expectation Of local bankers thaL
tie greater part Of the balance will soon find It's
way 70 New York and serve to prevent extreme
rates for loans in the course of the next sixty
DAYS. New York bankers are anxious to IN
crease their holdings, owing 10 the eAPectatitoth tt
OF big demands in the fall in connection with
the financing Of the crops and the requirements m
Of general trade, and they therefore do not en-
courage activity in speculation at this PERIOD
Bank reserves are unusually low for this time OF
the year and in some circles considerable appre-
hension is exhibited over the strength in the
foreign exchange market, which 10 some minds
apparently, foreshadows an outward movement
Of the precious metal In well informed foreign
banking circles however ii is believed that no
exports of gold will be made this summer, while
1t IS predicted that in the fall rates Tor ex-
change viii decline to a level which will encour-
age large shipments from Europe To the United
States.
Al the moment there is no great scarcity of
bills In the foreign exchange market, but the
maturing Of foreign loans naturally creates a
large enough demand 20 absorb most OF the of
exchange always rules at a high level! but in
August gradual easing in rates should de-
velop, unless there should be such supply Of
money in New York as 10 bring about extremely
easy rates for funds. There is little chance,
however OF any such development. That the
Secretary of the Treasury is not anticipating dis
turbance in the money market is reflected in his
announcement that July 10 S10O00OO0 OF
government funds in depository banks will be
withdrawn. Secretary Shaw believes that the
government should place at the disposal of the
business interests Of the country government
money whenever the situation demands assist
Rnce, and i may therefore be taken for granted
.hA. ~ nc event Of scarcitX OF in th,