New-York tribune., 1907-06-17
THE WEEK IN WALL STREET.

ment securities last week. but the movement OF
/ values on the Stock Exchange was distinctly dis
/ couraging TO the advocates of higher prices.
Early in the week some of the more important
/ financial interests endeaVored promote q bull
market, but after spasmodic rally quotations
/ resumed their downward course. ending the week
! at material declines compared with the clos
( ing figures of Saturday. June 5. There was no
/ public buying power and not enough interest on
the part of the leading houses to bring about i'm
/ portant improvement, while selling pressure was
/ sufficiently heavy to carry prices back after
! every advance, the latter tending to create the
/ belief that the market will move on these lines
! for some time TO come. An August buh market
I as not improbable, especially if the crops make
! good progress in July but in the greater num-
/ Der of Wall Street houses the atmosphere IS so
/ dark and spirits depressed that talk of
the development of bull speculation at any
time in the future is sneered at the wander
ing of foolish mind Wall Street is the place
! Of sorrows at present. 1t refuses TO be COM
forted by the splendid condition of the cOuntrys
industries. il turns deaf ear TO arguments
showing that all is not lost and that the nation
| viii not go to the dogs and il insists that its
! period of mourning must last indefinitely. At
J least this is characteristic of the sentiment in
circles where the long decline in prices has
! caused heavy losses and tied up people with
| securities for which there is no market. Trad
ers who have been bears for long time and
have had the courage of their convictions are
quite cheerful their profits have been large,
!
their way.
The bear element has had many factors in its
/ favor. and upon these factors il has enlarged
to an extent that has actually convinced some
/ people that the outlook in business money and
/ politics is extremely gloomy. Moreover, certain
spectators have taken advantage Of the alb
sence Of public demand for securities to in
I vent stories about various properties, which
have caused much uneasness among investors
who are not we'll informed regarding the meth
DDS of manipulators and as a consequence there
have been sales of securities by holders who
apparently believe cash is safer than stocks
Fortunately there has not been a great amount
of this sort of selling, the majority of invest
ors realize that the decline in stock market
quotations has not been accompanied by cor
responding reduction IN the earning power of the
companies which the securities represent and
strong is the belief that conditions underly-
ing investment securities are sound that many
people who happen to have money available are
placing II in securities fOr investment. There
has been large amount of this kind Of bust
ness in the last three months. but 1t has not
been the sort of trading that advances prices
Later on however, there will he a scarcity of
oldtime securities, and speCulatOrS who may be
short of the maEket will find difficulty In cover
ing their contracts, while the time also will come
when the great mass of new securities that are
/ now in the hands of underwriters Will be alb
sorbed by the public There is not enough
money available at the present time 10 take up
all the new stocks and bonds that have been
! the people who have been financing the needs Of
the railroads are heavily involved with this
! mass Of undigested securities is an important
! factor in strengthening the bear campaign. The
! big men are carrying heavy loads, and are un-
] able to promote bull speculation. An active
! bull market would change the general situation
| in Wall Street. but from what quarter is the
! buying power to come?
In foreign markets conditions somewhat SINH
lar to those that prevail at this centre are re
| gs1r4g5 r1iY1 oil
the European capitals and in London British
consols have just sold at the lowest price
corded since 1S4S Yet there is nothing the
matter with the British credit. The high in
come tax, which comes off the interest on the
British COnsOIs the sale of the securities by
estates and the reinvestment OF the proceeds in
issues that pay q better interest rate and forced
selling by persons who have been compelled 10
raise cash TO protect speculative commitments
among the chief factors contributing to the
low quotation for the English premier security.
France continues to call for gold and a Russian
! loan is reported and denied. If there is TO be
no Russian loan why is the Bank of France in
creasing its gold reserve TO such an enormous
extent? Is it just matter of habit-for 1t al
ways has been the policy Of the bank TO carry
big supply of the precious metal-or is it fear
on the part of the bank Of trouble in Russia. in
some other part Of the globe at home? Paris
, has taken more than S12, 900 900 gold from the
United States in the last two weeks, and the po-
sition of sterling exchange foreshadows further
shipments, while il is likely the Bank Of France
viii be an active bidder in the London open
! market to-day for the 100000 Of South African
gold which viii be available. The Bank Of Eng
land is in good shape to meet foreign demands
and the same thing may be said of the United
! States, but it is than probable there soon
| Will be advance in the price Of money at this
centre TO a level that will check the French in
! quiry for the metal
Local bank reserves are low for this period Of
! the year, the demand for money in connection
with the preparations for the heavy July inter
est and dividend disbursements soon will de-
| velop the Treasury is Withdrawing 100000 900
! government deposits and corporations are think
! ing Of doing more borrowing. In view Of these
/ factors il is easy TO why money ought to
grow irmer despite the inactivity in the call de-
partment, but in these conditions there is moth
ing that should cause disturbance. The Treas
ury is in a strong position. and in deciding to
pay off the maturing government bonds from
public deposits rather than from cash in the gov
ernment vaults Secretary Cortelyou reflects a
belief on the part Of the government that the
money market situation is far from weak. The
S3oO0Oo0O withdrawn to pay off the government
is will return to the channels of trade on July
| ,, the date for the redemption of the issues and
after the end of the current month rates for
funds doubtless will rule at a relatively easy
level until the time for the financing OF the
years harvests If the banks are unable then
to send money 10 the interior without causing
disturbance here the Treasury will exercise it's
privilege Of taking steps to increase the amount
Of government funds in the banks throughout
the country. While loans of all the banks in
the country show an increase in the last twelve
months of S420,OO0,00D, now standing at the
enormous total OF 81 1871 100000 there has been
an increase in cash in the same time exclusive
OF federal Treasury holdings. of $1SS 425 900
which furnishes basis for credit for an amount
greater than the expansion that has taken place