New-York tribune., 1906-06-04
THE WEEK IN WALL STREET.

sional traders commission houses being unln-
portant factors in the dealings while the more
substantial speculative interests were not heaN-
fly involved in the general operations Irregu-
larity with insignificant price changes was re-
ported in the daily dealings, which on Friday
amounted to the small total of 10000 shares
making for the week the unusually light trans
actions Of 1897 669 shares Absence of public
interest in the stock market at this period is not
surprising and it would not astonsh the best
observers in the Street if the outsiders should
refuse TO become actively identified with specu-
lation for a number of weeks to come, especially
as the time is now approaching when uncer-
tainty over the outcome of the country's har-
vests viii increase. Large speculative operators.
who generally are classed as the big men,, are
extremely anxious 10 bring about a higher
level of quotations. owing to the fact that they
are heavy holders of securities. which they have
been carrying for long time and which they
would be pleased to transfer to the public at a
better range of quotations. At the same time
there is a large short interest in the market,
and operators who are working for lower quo
tatons find this speculative position in their
way inasmuch as in all recessiOns a covering
movement develops which prevents further re-
action in prices The buying power. however, is
not sufficiently heavy al present 10 bring about a
sustained upward movement. but fortunately
conditions affecting the actual value of invest
ments are so strong that there is no possibility
of genuine lquidaton-that is. liquidation for
the account of actual owners of securities
From the character Of trading last week and
the movement of values it would appear as II
the market would remain in its present dull
and unnteresting position for some time to
c1,c,, ha N
development which would attract either an ac-
tive buying or selling movement
In the Hill shares. Illinois Central, Louisville
& Nashville Southern Railway. the anthracite
issues and the granger stocks speculation in the
week generally was on lines which carried these
stocks to higher figures but the buying of the
issues named represented nothing beyond the
operations Of boardroom traders and a few prom
inent operators who are included in the so-called
Gates element. Operators Of this class continue
10 assert that the market will soon move into a
bull boom, but their ideas receive little practical
encouragement from the general investing public,
though il is thought that later on in the summer,
provided crop conditions are favorable, there
will be more activity and better prices for both
stocks and bonds. Reassuring news from the
crop section OF the country was received in the
week, the position Of money became stronger
railroad earnings, as rule, continued heaNy,
bank clearngs were large. and the bituminous
coal labor situation showed Improvement, yet
these favorable factors were not able to create
interest in stock market movements among the
people who in bull times exert such impor-
tant influence on the course of securities values.
Perhaps the public is still disturbed over the
developments which have resulted from the in
vestigatIons of corporations and over expected
further disclosures which may be recorded when
the Interstate Commerce Commission questions
the New York Central and other companies
which are supposed to have been guilty of re-
batting and other improper practices. Then the
idea that all corporations are poorly managed,
because of the recent revelations, is growing and
while common sense suggests that the whole
business system in this country should not be
Judged by the developments affecting a few
concerns many people forget to exercise their
power of discrimination in forming their judg-
ment, and assume without any just basis that
American institutions have reached a most de-
plorable condition. One of the unfortunate feat
ures Of the present situation is the depressing
effect which the results of current Investigations
are having on foreign sentiment regarding
American investment securities. Present in
vestigations however, viii result in great good
and the after effects will serve to strengthen
American credit al home and abroad.
While the general position of the money mar
ket does not warrant the expectation of a long
period Of easy rates for loans. it is encouraging
10 record the fact that conditions are far more
favorable than they were a few weeks ago, with
no indication of disturbance in financial centres
in the immediate future. IL at any time this
year. Bankers are making active preparations
TO increase their surplus holdings and the
chances are that by midsummer there will he
ing House institutions as compared with the
figures printed in Saturdays bank statement
That the necessity no longer exists for imports
Of gold from Europe IS reflected in the action
Of the Secretary of the Treasury in stopping the
special deposits OF government funds against
shipments Of the precious metal from Europe
TO the United States This action will serve to
check further exports of gold to these shores
unless there should be material decline in the
rates for foreign exchange at this centre and
further reduction in the price of gold abroad
and in foreign discount rates. Doubtless the
decision Of the Secretary Of the Treasury to
suspend special government deposits with the
banks was Influenced to some extent by the
unexpected engagement last week by the Ma
tional City Bank of S1,5O0OO0 gold for imporl
under the arrangement by which the bank
ceived equivalent amount Of gold from the
Treasury pending the arrival OF the foreign
metal
The engagement of the metal last week was
made at a time when money began to move
lively from the Pacific Coast to New York and
evidently the Secretary of the Treasury realized
that the time for emergency measures had
passed, and as a consequence he rescinded the
privilege by which the local banks had been able
TO increase their holdings through the receipt Of
gold from Europe More than 81. 900. 600 has been
rTap frOu CO
in the last ten days through the Sub-Treasury
and according to information received from