New-York tribune., 1906-12-03
THE WEEK IN WALL STREET.

who were anxious to bring about cheaper
range Of quotations The fact that prices did
not make extensive losses when call money rose
to - per cent Friday was considered testimony
and Of the abiding faith OF investors and specu-
lators in the belief that securities would go to
much better level in the year Prevailing
rates for funds reflect activity in business rather
than overstimulation in stock market transac-
tions Speculation on the Stock Exchange has
been conducted in an orderly manner. and there
is every reason believe that the course or
trading will be confined within relatively mar
row limits in the balance of the year. while 1t Is
evident that the important financial inter
ests in the Street are looking forward to one OF
the widest markets in 1907 ever recorded in the
history of this country. The probability that
President Roosevelt in his message to Congress
will make further recommendations regarding
government supervision of corporations mas
failed to create uneasiness I'm Wall Street and
II is not at all likely that following the reading
OF the messa ge to Congress, there Will be any
important liquidation in stocks, though bear
traders may endeavor to bring about lower
values.
The work of Congress last winter on lines pro
posed by the President has helped legitimate
business in this country, although Wall Street
a year ago believed that any action by Congress
seeking TO restrain the powers of corporations
would upset business activities throughout the
land. Nothing has been suggested by the Presl-
dent which would in any way injure our IN
dustries and while there 2 few critics left
who still preaching disaster as a result OF
Mr.. Roosevelts ideas. the Countrys business IS
steadily marching forward, increasing in in
trinstc strength every day and bringing to Amer
Ican merchants and manufacturers larger profits
than ever before reported. The vitality has not
been taken out Of our corporations. one Wall
Street commentator observed last week, by new
laws affecting so-called trusts; indeed, the large
companies which supply such an important ele-
ment in our commercial progress have been
strengthened as a result OF the interest taken in
them by our national Legislators. At this time
in 1903 certain people believed that the pas
sage of the rate bill would interfere seriously
with the profits of railroad companies. but
il is now generally admitted that this rate legis
lation promises to be a most influential factor in
securing the rights and the profits of both the
common carriers and the shippers.
Outside Of money market changes there were
few developments in the week of interest TO
Wall Street, the Union Pacifc's annual report
being the most important exception. This state
ment exhibited a condition of great prosperity
in the affairs of the Union Pacific company. and
the only adverse feature of the report was found
in the action OF the managers of the property in
including in the assets for the last fiscal year
the income from the Southern Pacific dividend,
which not payable until four months after
the close OF the company's twelve months of
business There is no possible defence for this
kind of bookkeeping The Union Pacific prop
erty. since its reorganization. has been most
skilfuy and scientifically managed. and it is
unfortunate that at this point in its career the
managers have made such serious blunder in
adding TO last years income, in order TO swell
receipts and make a phenomenal showing,
item which belongs TO the accounting of the
present fiscal year The general impression in
speculative circles is not favorable to great ac
tivity in stocks in the present week and it will
not surprise close observers if prices should
move to a slightly lower level under the infu
ence Of board room traders operations. Bank
conditions later on may make necessary liquida
ton in loans, which would involve liquidation
in speculative accounts.
The position of bank reserves at this centre
does not suggest the probability Of easy rates
for funds in the balance of the year. Bank
statement figures show low reserves among the
Clearing House institutions, and there is little
chance Of large increase in the next few
weeks; indeed the demand for money in the
remainder of 1906 undoubtedly will be heavy
enough to prevent a large return flow Of
rency to New York. particularly the neces-
sites Of San Francisco and New Orleans have
not vet been wholly met. OF course, there will
be enough money for all the legitimate require
ments of trade but merchants Will be compelled
to pay high rates for accommodation, while If
there should be substantial expansion In stock
market operations spectators would be forced
TO secure their funds at ra ties which might ap-
proach the high quotations established In the
call department Of the money market last De-
cember Wall Street, however. exhibits no un-
easlness over the monetary situation. believing
that after the turn OF the year currency will
return to the East in volume large enough to
bring about a relatively easy level for loans
though it is not considered probable that there
will be d low range Of quotations as long as
industrial activity continues at its present rapid
pace. Interest and dividend disbursements on
January / will be heavier than in any CORE
spending month in the history Of the country
and preparations for meeting these PAYMENTS
which soon will begin, undoubtedly will be an
important influence in the money market in
december, and 1t is therefore quite likely that
the large financial interests Will endeavor to
check expansion IN speculative operations.
Local banks have been losing heavily on their
operations with the Sub-Treasurv owing n tho
large excess Of government receipts over ex-
pehdltures. and this fact it is to be hoped will
impress itself the minds of our trorgrass,,e
VINO VIII be asked at the coming session of the
n2t tonal legislature take I'D the nues,ior -
currency REFORM. One Of the features OF the
plan recently adopted by bankers for preseptao
tlon TO Congress involves the placing of gov
erhnent receipts in the banks, the government
10 receive per cent interest on such deposits
the theory being that the interests of the conn
try would be better served with its money I'm the
channels OF trade rather than locked up in
Treasury vaults. In the last month the GOVERN
ments excess Of receipts over expenditures
amounted TO more than 100000 the greater
part or which came of the New York hanks
owing 10 the fact that government receipts come