New-York tribune., 1908-08-10
THE WEEK IN WALL STREET.

IN the outside demand for securities Iul my
aggressive operations by pools and powerful
individual dealers and greater activity on II .,ie
part of the ordinary professional element ne
biggest in Wall Street working on the
bull side of the market. but many OF tieIl are
opposed TO the sort of manipulation th;'t ue
veloped in the closing DAYS of the Weeh' as
they believe operations of that character WIN
frighten off the public and leave Wali Street
tied up with the shares which ii Is anxious /"
distribute at higher prices. Stocks alreao! haNe
enjoyed a material gain from the low points ol
the year. and in the greater NUMBER Oh casts
they are selling above the level of this time
year ago.
There has been an appreciation Of from 20 to 90
points from the panic figures OF 1907, ana halur
ally there are not few persons who believe the
time has come for halt in the forward progress
of values though they do not find in gene; al con-
ditions any reason for short sales for more thah
a turn or any good reason why buying CT good
stocks for cash should not continue. On the other
hand, this idea does not represent the majority
opinion in the Street. Prices. based on the quo
tation for money, on the expectation that there
will be a return OF normal times in the business
world in the course of the current fiscal year
and on dividend yield. not high, but this TACT
does not preclude the possibility of sharp de-
cIines in quotations In the future. As a
general proposition. however. the tendency of
prices ought to be in the direction OF hlgher
level for some time to come, especially as the
leading interests have all the money they need
velopment of factors that would injure the
actual worth of investments or the election Of
Mr. Bryan, stock market quotations donbtleSs
will go as much above their true worth as they
went below it last autumn
There are some reasons for the belief that
the snec,,1ative mania will run riot before the
end comes Unfortunately. Wall Street is un-
able TO conduct orderly speculation: II 10
unable to control at a time when theie a
abundant supplies of money its own llleili"e'
f,at Dn
care much whether not market movements
run into market orgies. The public Is beginning
10 buy stocks margins. and the usual oan-
eerous pvramiding operations have begun AN
advertising campaign proclalmhg tlat lhe
greatest bull market of modern times is about
- da1.eIor &c under wav and doubtless will be
an effective influence in enabling the people
who bought stocks from ten to thirty polnls
under the current level to sell at attracuNe
profits 1t is too bad the advertising campaign
did not start in when the puolic Coul" H'N W
real bargains.
If the market expands it is expected to do
small margins will not do al all; indeed the ule
has come when fluctuations are too large lor 'he
ordinary commission house trader TO Keep up
with and unless he has his trades we'll secured
he is Iilxeiv 10 lose in minute savings that were
lahoriousIv accumulated in his legitimate pusl-
ness People who have idle money shouid oiS out-
right and leave the margin proposition se'elei9
alone American Smelters advanced points on
FridaV and fell = points Oh lile SdIiI ''AS'
movement supplied an example of the qmck ao-
tion of big bull market and the splendid chance
for the margin operator to lose his money. ne
commission house trader who belohsS 10 tile So
called outside element seldom knows Wheh 10
take a profit but is quick to sell when reaction
dayeIons And if he does not sell his broker VIII
do II for him. closing the account with the
cheerful message that the account ieft IS 700
small for further operations, or else fhat the
customer may remit at once balance owing the
IF dpnlPto6 margins
sale at loss. Regarding the advance IN
SmeIters last week it is understood that 2o0.o0O
shares of the stock will be transferred to Stand
ard Oil intSrests this week
Wall Streets current enthusiasm is based on
the huge supplies of money at this centre and
throughout the country. on the expectation OF
average crops. which will increase TO tre-
rnendous extent the buying power Of the great
agricultural section of this country. on the i'm
movement in the iron and steel trade. on IN
creased bank cIearings in July compared
with June on better conditions in all lines of
trade and on the belief that Mr.. Bryan will not
be the next President of the United States.
The price of copper showed further improve
ment last week, figures of July's pig iron pro
duction gave a big gain over the preceding
month and large orders for steel ralls were re-
ported. In the building trade returns from
fifty-one cities presented an increase of 10 per
cent in July the same month last year, III
textiles growing activity was recorded and
stocks in the hands of jobbers and retailers
were low enough to suggest the need in the near
future of replenishment Business recovery has
started. but IL will be some time before II
reaches its limit.
Government figures of the crops. showing con-
ditions as of August l, foreshadow good yield,
though not record breaking harvests- Whatever
has been lost, however as result of adverse
weather conditions will be offset by higher prices
Another encouraging factor of the last week that
received less attention than it deserved was the
action of the directors of the knickerbocker
Trust Company in anticipating the fourth and
fifth payments due depostOrs The ability Of the
institution to do this reflects the great change
that has taken place in banking conditions since
the panic when it was thought the kncker-
booker and many other concerns never again
would open their doors. Few of the banks and
trust companies in this state that We're forced
TO suspend business a result of the panic
conditions have failed TO reopen. and the gen
eral banking situation is stronger to-day than
at any time in recent years.
There is more money in the New York banks
and more money in circulation in the country
than ever before recorded. The reserves of the
associated banks are larger than at any time
since 1891, while the cash holdings of the New
York banks and trust companies are equal TO
one-sxth of the entire amount of money in the
United States Soon there will be an active
inquiry from the interior for funds in 1onnec-
ton with harvest purposes but the chances of
disturbance in the loan market as a result of
the outside demand are too slim to deserve men
Ion. There may be a per cent money mar
ket in the autumn, but no one at ali acquainted
with the monetary situation looks for stringency,
especially We viii be able to bring in gold
from Europe if the requirements of the market
should become urgent.
At present borrowers can secure all the funds
they need To last over the period when rates gen
orally advance at from 212 TO per cent the lat
ter rate Being for five months Sterling exchange
is weaker a result of large sales of American
securities TO European investors and short sales
IL.