New-York tribune., 1908-05-18
THE FINANCIAL MARKETS
STOCK VALUES ADVANCE TO NEW HIGH RECORDS
FOR THE YEAR.
Ace Manipulation EvidenceHea1y Gold Exports Made-oHy
Continues Easy.
THE WEEK IN WALL STREET.


operations of powerful financial and railroad
interests who had excellent reasons for their
active participation in the campaign 1or ao-
vancins prices Bull markets as a rule are
started by manipulation and subsequently are
supported by public buying. In the last iotl-
night aggressive manipulation has peen Ile eiiiei
factor in the speculation, and unless the OUTSIDE
element soon responds to the generous l'hd
ton of the insiders to lend helping hand the
latter will find themselves loaded up with Sc
curities at top prices and no free market for
their profitable liquidation. In the past IL mas
not been customary for the public to exercise
caution at times of advancing values or 10 pe
wary of the gifts offered by professional Dull
boomers but in the present instance the out
slider appears to be practising unusual amount
of common sense in his market operations
steering clear Of marginal purchases In a mar
ket that has appreciated enormously IN le"
weeks and when buying paying for the purchase
in cash. Twenty active railroad STOCKS na'e
advanced since the panic of 1907 in points equiv
alent to about s425000,000. with the chlef en-
hancement III the Hartman issues, ana IL Is the
influence of the current operations in the Harrl-
man stocks that in great part is responsible ioi
the present bulish enthusiasm in the street
enthusiasm which in effect sweeps aside all the
adverse factors in the situation and creates In
are to advance indefinitely. The market has
reached a point that ought to suggest the WIS
dom of speculative purchases on declines only.
1t is topheavy and unsafe. 1t is full OF STOCKS
and many houses are anxious TO secure help III
carving stocks they have bought. an lndlcatloh
of which is presented in the offer of various
firms to lend large amounts of stocks at interest,"
rates higher than those quoted in the open call
money market
The speculative position and the investment
position are two different matters, and people
who hold stocks for investment account should
not be unduly elated over the present advance
nor should they go into mourning if a sudden
turn should develop in the course of prices Ihe
greater number of investment securities are safe
and sound for widows and orphans, and the
current depression in the industrial world Will
not upset intrinsic values: but il is conceivable
that with the retirement from active speculation
of the present hackers of the bull movement the
uncertain trade situation and the approach OF a
Presidential election will be utilized to bring
about cheaper quotations The objects Of sub
stantial interests in promoting bull market are
RAPIDLY being attained The advance has in
creased the confidence of capital in American
railroad securities and has developed market
IN which corporations of good standing Sc
cure money against their bonds for new con-
struction and Improvement purposes. The ad-
vance also has made possible the enrichment Of
bank accounts that were seriously injured last
fall and fortunes thus acquired hardly will
have been heavy. particularly at time wnen
business and politics are bound TO hold more
important place as speculative factors The mere
fact that the banks hold big reserves and have
increased their credit facilities to enormous
extent does not warrant runaway bull specula-
tion and the chances that if such speculation
develops it will end in disaster This is good
time to conserve resources OF all kinds, and so
far there is no indication Of any other attitude
the part of the business men of the country.
II is an excellent time 10 buy first class bonds
and standard shares for permanent holding, but
a dangerous time for reckless speculation.
Union Pacific has not yet placed its proposed
bonds, and the head of the company announces
the property has all the money it needs for the
present and can afford to wait for a better mar
ket before selling its securities This state
ment made in the last week encouraged traders
to maintain q position the bull side the
theory that Mr. Hartman and his friends were
not yet ready to loosen their grip on the market
and that there logic in this reasoning sub
sequently reflected in the movement Of
values. Union Pacifics new bonds doubtless will
find market but there is some reason be-
lieve that the railroad and the bank
ers who dlave been approached the mat
ter Of financing the issue do not agree on the
question of price, though the chances are further
appreciation in the general market will serve to
adjust the difference That leading bankers
have confidence in the future and believe the
country VIII not suffer from long period of in
dustral depression is indicated by their dispo-
sition TO entertain propositions for the financing
Of railroad requirements, several instances of
which were presented in the news Developments
of the week just closed. The railroads are not
making much money at present, but they are
making preparations for future heavy traffic
and their cheerfulness in the face of current
enormous decreases in earnings is of the re-
assuring signs of the times. Throughout the
business world there is almost total lack Of
depression in spirits Business men are looking
on the bright side of the situation; they realize
that underlying conditions are far stronger than
In past seasons of industrial dulness; they know
the country is rich in money and in farm prod
ucts, and they feel assured the currency uues-
ton is firm basis and will be strengthened
by future legislation. The Vreeland bill caused
little comment in Wall Street last week because
even If II or the Senates substitute should be-
come law, the legislation would have no i'm
mediate bearing on the currency situation In
general business circles, however, the passage
Of d financial measure through the lower branch
of Congress was received an omen of an an
probation among our lawmakers of the impor-
tance of currency legislation to the business in
terests Of the country.
There was no change in local money rates
last week and no indications in the course Of
the market of higher quotations for loans for
number of weeks TO come. Money is easy in
most parts of the world, Germany and Japan
being the chief exceptions and If il were not
for the strained financial conditions in Berlin
gold would not be leaving this country in the
present heavy volume. Both France and Ger
many secured the metal in this market last week
and there We're definite indications that the
movement would continue In the current week
10 an even larger extent. As interior lenders are
Offering large amounts of money at this centre
ana as bank reserves heavy shipments of
gold from here attract little attention in the
speculative community. As long as money rules
at an easy level at this centre gold Will go
abroad, the prospects fayoring a total outgo OF
upward of s5O.000000. Foreign commerce figures
FOR the month Of April make some striking changes
a. compared with those for tlas CO.. -,