New-York tribune., 1907-07-29
THE WEEK IN WALL STREET.

little activity in last weeks market, dealings in
Union and Southern Pacific amounting to fairly
large totals movement OF values that
showed improvement compared with the
closing figures of the preceding week Strength
In the shares naturally exerted certain In
fuence other issues, but there was no great
active demand from commission houses and no
material response to the aggressive efforts or
stock market manipulators to bring about
higher quotation level. Nevertheless there were
few important declines and especial prog
ress the part OF the bear element The
strength in Southern Pacific was based on the
expectation of increase in its dividend, and
the failure of the directors to take action on the
matter at their meeting did not cause a sub
stantial reduction In the price Of the issue
Indeed. the announcement by Mr.. Hartman
that the dividend would not be made more
than 6 per cent was thought to insure the
placement Of the security that level at the
next meeting Of the board, which doubtless will
be held this week Southern Pacific at its pres
ent price. is considered an attractive bargain.
while the thing may be said of Amalga-
mated Copper, which is selling under par, and
yet Is on a straight s per cent dividend basis
There was fair demand for the latter stock in
the week. but the uncertainty over copper trade
conditions effective in checking the move
ment in shares. which otherwise might have
developed In sympathy with the buying move
ment in other market leaders. So far there has
been no especial increase in the demand for
copper as a result OF the reduction in the price
of the metal, but It is believed active inquiry
soon will be reported. and that a large business
will be done in the course Of the next few
months at the current level OF quotations for
the metal The investment demand in the week
was light as reflected in the unimportant deal
ings in the railway market.
Money market conditions do not warrant great
speculative activity In the Stock Exchange, but
at the same time they do not discourage the idea
which is held in quarters OF serious dis
turbances in the financial market in the course
of the next few months. Local banks are gain
ing from the Sub-Treasury as result chiefly OF
the redemption of government per cent bonds
of 1907, the increase OF bank holdings last week
from this source amounting to more than S4,-
O00,Uo0. This movement. however. soon Will
to end. while federal expenditures will
decrease from the heavy volume of payments
noted since the first OF the fiscal year and as
consequence the banks will show an unfavorable
balance on their operations with the Sub-Treas-
ury at a time when the demand for currency
from the Interior will be heavy. incident TO the
financing of the years harvests. Treasury hold
ings increasing, owing 10 big receipts from
customs and internal revenue. and, OF course,
this fact, IN connection with the demand for
funds from out of town points, Will serve TO
bring about higher rates for money and dis
courage speculative activity on the long side or
the stock market. Operators in stocks believe
the time IS ripe for active bull movement,
but they evidently do not take into consideration
monetary conditions. do they appreciate the
fact that the public has its money so we'll en-
plOyed in the channels OF trade that 1t has no
surplus funds available for speculative purposes.
If trade slackens in the next twelve months
bank holdings will increase and Idle money will
find its way into the bond market which at the
present time is practically dead. Bond houses
have large lines of attractive issues on their
hands, and. though they report some sales to in
vestors, they assert that the amount sold Is too
small to exert appreCiable influence as
market factor. First class railway mortgage
issues may now be bought at prices that return
more than the usual interest yield. and people
who have money for investment Will make no
mistake in purchasing these securities There
are no safer investments in the world than the
bonds OF our representative railways especially
the issues which are approved as investments
for savings banks
General conditions affecting the intrinsic val
ues Of stocks and bonds are unusually strong,
but the present condition of the money market
does not suggest the probability Of the develop
ment OF a big bull speculation in the immediate
future. The crops are improving and promise
far better harvest than indicated by the re-
ports Of few weeks ago, railroad earnings are
heavy in all parts of the country. bank clearngs
are large and the situation in the iron and steel
trade is satisfactory. Doubtless in the course
Of the next twelve months there Will be a re-
action in business, but the best informed OBJ
servers in the Industrial world believe ii will be
no more than a slowing down process, which
will be followed by renewed and even greater
activity than is now reported No one with or
dinary sense believes the country is about 10
enter period Of widespread commercial de-
preston. Fundamental conditions sound,
and they present every reason for extreme conf
dence the part of holders Of securities in their
possessions. There is reason for the sale Of
good stocks and bonds at present quotations.
while there various reasons which cause
careful market followers to believe that after
the crops have been financed prices for most
securities Will move to a better range Of values.
In the event Of trouble in the local money mar
let this country doubtless would be able to OBJ
tain assistance abroad. our obligations there
have been much reduced in the last six months.
and It Is not at all unlikely the improvement in
financial conditions In Europe will induce for
eign bankers TO extend aid to this centre II
monetary stringences should develop. AL
though rates for foreign exchange last week
were strong it not believed in well Informed
foreign banking circles that further shipments
Of gold would be made from New York, especial
" as in the near future there will be large Of
ferings Of cotton and grain bills at this point.