New-York tribune., 1906-04-30
THE WEEK IN WALL STREET.

The declines which took place in last weeks
stock market were not due TO adverse develop
ments in the general position of business In this
country, but TO the uncertainty over the present
and future OF the money market and to the
heavy liquidation OF securities by interests
identified with San Francisco and by speculative
pools and individuals who were unable TO pro-
vide additional margins to their brokers' me
appalling extent of the San Francisco calamity.
coming at time when more or less imitation
existed in stock market values naturally has
exerted a most depressing effect on specu-
lative sentiment, and despite the fact that GER
tain operators are endeavoring TO juggle the
disaster into bull factor. there is no indication
In the movement Of values that the majority OF
traders consider the stock market in favorable
position for the resumption of bull activity. AT
times in the week acute Generalization pre-
vailed in the stock market. Prices declined in
manner which suggested the panicky period
Of the Northern Pacific disturbance of May 9,
1901. and the absence of important support
the downward movement naturally created the
idea that the leading banking interests were
willing to encourage a still lower range Of quo
tations.
With money at its present level and with
little prospect OF an immediate easing in rates,
quotations for stocks are still out of proportion
TO the price of funds. and many conservative
be readjusted TO a lower level before there can
be active resumption of bull operations.
Nevertheless. 1t should be borne in mind that
nothing has happened to destroy investment
values The San Francisco fire and earthquake
have of course wiped out immense amount
OF property and have compelled many people to
convert securities into cash, but the general
position of affairs in the United States has not
been affected. and there is no reason to suppose
that the industries Of the nation are about to
suffer a change from their present prosperity
AS the market already has gone through a period
Of extreme selling pressure. it is reasonable TO
believe that speculative rally soon will develop
but at the moment there is too much uncer-
tainty In the situation to encourage active op-
erations the part of the so-called public. AS
q matter of fact, the greater number Of people
in this country have their funds so we'll en-
ployed in legitimate business operations that
they are not willing TO make ventures in the
stock market under present conditions. though
ii is not improbable that in the event of
further material reduction in quotations the
larger investment interests in the country will
accumulate first class stocks and bonds.
In the last days of the week notable improve
ment developed in the money market situation.
the chief influence in bringing this about being
the practical elimination of the Russian loan as
Europe and in this country. In view Of the fact
that the Russian bond offering subscribed
twice over Ii may be assumed that there no
longer will be any necessity on the part Of for
eign bankers to keep large amounts Of funds
in reserve, and a consequence it is reasona-
bic to suppose that there will be no further
serious objection to shipments of gold to this
country just long conditions in the local
money and exchange market warrant the i'm
portation OF the metal. The large subscriptions
10 the Russian loan indicate that there is a
vast amount OF European capital available for in
vestment, while they also indicate confidence on
the part of foreign capitals IN the future fnan-
cial stability of the Cars empire. Moreover.
the success OF the loan relieves foreign under
writing syndicates from the necessity of keep
ing their funds tied up for an indefinite period
and therefore becomes most important infu-
ence in the money markets of the world, re-
hection Of which already is presented in lower
rates for discounts abroad, a decline in bar
gold in London, an advance in Paris exchange
and the engagement Of more gold for shipment
TO this country. Though the New York banks
have been called upon in the last week to send
big sums Of money to San Francisco, the move
ment has been offset in great part by receipts
Of the metal from abroad. while 1t is believed
that if the demands Of the Pacific Coast city
continue heavy New York bankers will be able
to strengthen their position through further en-
gagements of the yellow metal in London and
Paris The chances are that the re-establish-
ment of San Francisco a business basis will
continue TO be an active factor in the money
market for number OF weeks to come, but II
is not believed that there will be any note
worthy disturbance in the loan market, owing to
the change which has just developed in the for
eign financial position.
Liquidation of speculative holdings on the
Stock Exchange has not been accompanied by
acute trouble in Wall Street, as the selling has
been conducted in an orderly manner, with fair
support offered the slightest indication Of de-
moralization. This passing Of stocks from weak
TO strong hands naturally has served to
strengthen the general monetary situation, in
asmuch as il has returned to- the banks sub
stantial amount Of funds which for a long time
have been tied up in speculative operations
Money undoubtedly will be active throughout
the year. owing to the expansion which is going
on in all lines Of industry. TO say nothing of the
great demand which will be created by the
necessities OF the mercantile and banking COM
Ynunity in San Francisco in the rebuilding Of
that city. The willingness Of the Secretary of
the Treasury 10 deposit large sums of govern
ment money in the stricken town and success
ful efforts to encourage the importation OF gold
have been effective in promoting much better
feeling in the financial community at large. and
have helped TO prevent the development OF con-
ditions which might havo led to serious results
in the money markets OF this country. While
the reserves of the New York Clearing House
institutions are not especially large. the bank
ing situation at this centre is strong. and there
is absolutely no reason for uneasiness over
the future. especially as New York is in such a