New-York tribune., 1908-11-23
FINANCIAL MARKETS
HIGH RECORDS FOR YEAR.
Better Demand for Money Expected
Business Prosperity DeUelopfng.
THE WEEK IN WALL STREET.


Stock market values made new high records
for the year in the early part Of the week. and
though in the subsequent operations sharp re
actions developed closing quotations as a rule
were not materially under the final figures of
the week before. In view of the extent Of the
realizing the losses made we're insignificant and
the fact that prices did not seek a substantially
lower Ieve! induced the belief in many quarters
that the new buying for public account was
not Of the weak margin variety that generally
is reported after prices have advanced for
protracted period Technically. the market was
strengthened from the bull point of view as q
result Of the creation of a fair sized short In
terest but if at the current levels the huying
is left entirely to the outsiders II is likely the
bear account will be extended, furnishing the
basis for g further sharp advance when the SO
called big men execute their plans for re
sumption Of their bull campaign. Current Street
gossip is 10 the effect that prices will go lower
before further Improvement IS shown, ana IN
some quarters the prediction is heard that quo
taticns will sell down 10 points before the turn
Of the year, from which level brand new up
ward movement will start, carrying values TO
the best figures ever recorded. Market move
Ynents have a habit Of proceeding contrary 70
expectation and prediction. and it appears Of
LITTLE use 10 try TO forecast what prices will do
from dav to day- though under present condi-
tions there is some excuse for the idea. that
after the enormous appreciation that has taken
place in quotations and the human desire Of
SPECTATORS TO convert paper profits into cash
2 cheaper range Of values may be looked for
before the high prices hoped for by the greater
number of people in the financial community
are brought about The people who bought
stocks last week were strong financially, but
not so strong as the people who sold, and if the
market speculation follows precedent the next
set Of buyers will be Of the relatively weak class
which will be forced into liquidation, at a loss
in the event Of q concerted attack upon the
market
Stocks are far less attractive as specuattve
and investment purchases than they were q few
weeks ago. and on all advances distributing
sales doubtless will be made by last weeks
buyers. The largest interests in the Street
may be satisfied to buy back their securities
small reactions. though # there appears any
chance of 4 materially lower level before rhe
holidays il is likely active manipulation for a
decline will develop. The position OF the money
market Of course is not in favor of q falling
market, and Il may come 20 pass that the peo-
PIE whose operations have been chiefly respon-
sibe for recent advances viii not abandon their
campaign at this juncture the theory thar
while money is easy it may not he so cheap
in the new year and that the best policy to
follow will be the old one of making hay while
the shines. With easy money and bull
enthusiasm in all parts OF the country stocks
throughout the last month Of the year NAV
move on 2, gradually rising market, but big
margins nevertheless ought to be provided and
pyramiding of accounts should not be practised
The actual investor, Notwithstanding the i'm
provement already recorded, will find some good
opportunities left both in stocks and bonds
and though The return the investment will
not be anywhere near the level that prevailed
in the summer and last spring. from AZ to 51a
per cent on gilt edged issues may be secured.
In the course of the next twelve months as
suming that business conditions return to 2
normal basis. as all indications promise the in
Nestment Weld undoubtedly gradually will de-
crease. and as consequence advantage should
be taken Of al reactions for the investment or
idle funds which for some time 10 come will
ma the securities markets more profitable than
the money market. Many of the convertibIa
bonds are attractive. and the current move
ment of money into this class OF investment re-
fleets the growing favor in which it Is held by
careful financial interests.
Business conditions throughout the country
and the sentiments expressed by business men
and hnanciers over the future course of our
industries suggest a more active demand for
money as the weeks go on but at the moment
activity IL the money market is confined to the
call department, in which rates continue to rule
at a low level ia addition to regular business
needs IN the near future federal Treasury
financing doubtless viii play a part in the
movement Of loan quotations though If * NOT
expected that the offering of $50 1000 900 Panama
bonds last week by Secretary CorteIvou will -ex
tIt iluci oI ab lnluence on money movements.
The Treasury is far behind In it's revenues
compared with its expenses, with the prosDect
Of an increased deficit in the rest of tba
fiscal year. that II is probable large amount Of
government funds will be Withdrawn from de-
positary banks In order TO strengthen the fed
eral working capital, and a call of this charac-
ter coming at time when there is need for
the heavy employment OF money in the channels
of trade naturally will serve 10 advance loan
quotations, with the probable result of curtailing