New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-08-21
THE WEEK IN WALL STREET.

desperate assault on the stock market last
week by the bear element in Wall Street re-
suited in its complete confusion. II was per-
haps the worst defeat that this element has suf-
fered in the entire summer, and did more, ap-
parently to disclose the actual strength or the
market than anything that has yet occurred
The plan evidently was to take one stock after
another and break II down. until the whole
structure of values was tottering, and then by
final decisive blow, TO bring on total destruc-
ton Never did a plan more completely mis-
carry The work went on for two days only and
extended to two stocks only. The first day.
Tuesday the object Of attack was Brooklyn
Rapid Transit A considerable reduction in the
price OF the stock was effected. The second day,
Wednesday the batterng was turned on
Sugar Refining. Sugar Refining yielded but
while II was receding Brooklyn Rapid Transit
was pulling up again in price. The next day,
Thursday the whole list was aroused and the
bear contingent gave up the fight.
The discontinue OF the bear party was ac-
complished not by hard work on the bull side,
but purely and simply by the natural resistance
of the market when pressure was applied to H.
The stock offerings were readily absorbed. and
IL was shown that the digestive capacity Of the
market was so great that bear campaign was
hopeless undertaking In brief ii was demon
strated conclusivey that profit lay wholly on
the long side Of the market and accordingly
that operations on the short side invited loss.
Nothing could more distinctly have brought out
the true situation or more effectually nave IA
ctated the appreciation in stocks Whatever
doubt may have existed as to the real trend or
values was summary removed After 1t recov-
cred from it's surprise and decentralization there
was not enough courage left in the bear COM
pany TO charge upon last years quotation.
Something that was relied upon, TO some eX-
tent at least TO help put down stocks was
money. This was another rope OF SAND. and not
the kind that is supposed TO represent determi-
nation. 1t was calculated apparently that the
fall in money rates would stop the flow Of funds
from the interior to this centre. and that con-
sequent difficulty in obtaining money to carry
stocks would eliminate anything like defence
from the market. Money kept right on coming
to New-York despite the lower rates for it.
This revealed too, that there prObabil-
ity of a draft upon the money supplies here for
the wherewithal to move the crops. The fact is,
as has before been stated that there Is sufficient
money In the West for handling the crops with
out calling upon the East for aid There is. in
deed. Surplus of money in the West. as has
been shown by the large volume of loans made
in the East and particularly in New-York. by
the Western banks.
The West he's become Independent OF the East
In money matters, and this position has been at
tanned by several large crops in succession and
an enormous expansion in industrial activity
The West is depending in far less degree upon
the production OF grain than formerly. 1t has
gone into manufactures, like the East. and also
into transportation, like the East 1t is becom-
ing plain that the annual recurrence Of a con-
stricton in funds with the attendant squeeze in
incident n the Of he has
come TO an end. The West is able to provide for
its own wants. 1t has been a fear that the East
would be denuded of funds when the harvest
time came that has restricted operations in
stocks and repressed values, The way is
clear and general business conditions may
sert themselves in the stock market.
II hardly needs TO be repeated that there is
nothing which more adequately displays the
state Of business throughout the country than
the earnings of its railroads Present railroad
earnings surpass all previous records; conse-
ouently the business OF the country must be. as
It u.s. better than before. There is sign
OF probability Of decline in railroad traffic
The immense tonnage which the roads are NOV
ing is not a sudden development Its proportions
have been reached by normal growth, and it
does not stand TO reason that the tonnage is
going precipitately to shrink In the last three
or four years the roads have added materially
10 their rolling stock. and yet a complaint of a
shortage In cars goes up from all parts of the
country. AS far ahead be seen the roads
have traffic to maintain. if not TO increase. their
revenues. The coming year is likely to produce
even greater results than the present one for the
railroads The latest railroad earnings, COM
pared with those year ago. printed in an
other column on this page and tell their own
story.
Not only is railroad traffic heavy but the pro-
ceeds Of 1t are not dsspated by rate cutting
In other words the roads are getting the full
benefit Of the tonnage that is coming TO them
Rate irregularities at minimum and this
ia the case chiefly because of the abundance
Of freight and for another thing because Of the
insufficient supply of Rate wars are
usually the accompaniment Of light traffic. When
there is not tonnage enough to go around the
roads fight for II and their trains are hauled
without profit. So long the facilities Of the
railroads as whole taxed they
are Il Is certain that so long will freedom from
rate troubles be experienced. The largest pro-
portionate increase in earnings is reported by
the so called granger roads. the great grain
carrying lines in the Northwest. and therefore
their proportionate increase In raffc'has been
larger than that Of roads In other sections Their
earnings in July. the figures Of which are prac-
ticaliy complete. show that the increase in the
earnings Of the granger roads July. 1898.
was about 32h per cent. Next in order in the
extent OF the increase in their earnings
the Pacific roads. the roads in the Central West
and the trunk lines. The showing by the South
srn and Southwestern roads is good