New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-11-02
financial
The Financial World.

had been sagging since Monday morning -
a sudden slump. Instead OF dribbIes in So,
lots, there was rush Of sales quite respec4aL1.
in amount. and prices dropped under the vvsigh.
of them Il looked as if a real HGuidatino NO.
ment had started. to be continued next dav Wis,
increased force Then the other thing hapuepa1
In the morning. few supporting orders xera
put into leading stocks. and the selling naov.-
nent was checked with the greatest ease. Sine.
then quotations have moved upward and los,
ground has been Tegained.
The point of this is. that people who hav,
stocks are still able to hold them. and are very
unwilling to sell So we have duIlness in trad
ing, but firm market, in which professional
raiding is easily driven of.
on the one side. we have against us the un
rest OF labor end the uncertainties OF tie ro1ev
situation: on the other. the enormous traffic OF
the railroads. and the yet larger volume Of bust
ness in sight. which is worrying the managers %
get equipment sufficient 20 move il. Out Of this
state of things. it comes that the purely dnan-
cial men, the bankers, are generally bears; ara
sounding warnings about dangerous expansion
of credits. foreign Indebtedness and over-cou-
version Of floating into fixed capital: while the
railroad men talk Of overcrowded lines, short
age OF equipment, difnculty OF meeting the IN
creaslng demands of shippers. and earnings
which are 10 be greater this fiscal year than ever
before.
Division Of opinion like this is apt TO produce
temporary deadlock in the market 1t was this
which Mr. Gates found when. his return from
Europe. he started in to vigorously stir Up the
market, buying stocks right and left. He could
not overcome the inertia Of the situation; no
following Of any Importance was attracted. and
he had to give up. He is OF those who be-
Heve and acts on his belief. that there must Be
higher prices because OF the volume Of business
doing and the amount in sight ahead; while Mr
Vanderlip. high official in our greatest bank
rises up and warns the country that we have
expanded credits to the danger point. and that
the financial structure reared in the past three
years is an inverted pyramid. with vast vol
ume of loans resting on a relatively small basis
Of cash.
Parenthetically, IL may be said Wall street
remarks with some sarcasm. that note OF
warning in this line. from the same source
might have done good about the time that Anal
gamated Copper was launched
The railroad men, It VIII be seen. are looking
exclusively at their traffic returns; the bankers
are looking at the whole field OF speculauve
enterprise; at. for example real estate values
as we'll as stock quotations In the opinion OF
many shrewd judges, real estate IS much deaFer
than stocks Il would sooner buy STOCKS no"
at these prices than real estate" said one
ANYTHING we see in stocks Initiation Of values
in all things in which it has taken place, Is
forced upon the attention OF the financial man.
who. is called upon to lend money on paper rep
resentine, a wide variety Of enterprises. mort
cages. merchandise. stocks. and all the rest OF
it But the railroad man sees that eSrhHsS
are say. at the rate OF 10 per cent on MS stoSA'
which is paying only 8, but selling N 'lS ma.
1at we'll M to measure OF the earnings ana u
cd 70
with him The objection Of the other man
that the 10 per cent rate Of earnings has oeeh
about discounted in the market price, Wnhe Tue
ac+ual pavrnent is only six We have case IN
point in Norfolk & Western. which ran up 70
so the other day. The road Is croSFded 10 Us
extreme capacity with business. and hNsly 20
continue so for long while; but It's diV'~7-
Is only per cent and will be increased !. me-
,,n,s only to s; so when the stock rose to 80 !"
seemed natural to inquire what room '''
for further rise-at this time?
which Of these two sets Of men, or OF opm-
toDs will prove correct-the one that Ndiu'S
must come down because or minated Hl'-N
conditions: the other. that stocks must I'Se
causA Of the volume OF trafic-it IS not ple'e''~
- predict here. The effort is made mercy ~
state situation. which is exhibited IN s'Hi'
its effects in the dizziness Of the narAs'' -
--ha Dandine election contributes its mite 10
0uIlDeSS.
a. 10 s,sn that the changes it may cause VIII Os
I've enough 20 affect appreciably the present
strength Of parties in Congress; and TOT u..0
S,a,s n il a local matter. more 1mpor1aH' "
individuals than to public policies
1.bs vararies OF specuIation-Which are e'"
s4sptlv- upsetting calculations-are Wen HUE
Grated IN the present prices Of Manhattan AM
Nerreuolitan The latter is guarantees ~
cent stock Allowing that the guarantee Is H
oi1+-eased. and suggestive OF the query VIZ
shall guarantee the suarantor. yet the s'''N
oc4uaIlv having 2 per cent. Manhattan IS pay
ms These two stocks are selHns "4eI'I
few points Of each other-Metropoht@n -
Manhattan at 13S. Ostensibly. the one i
surdlv cheap and the other as aosurNIE MS"
but there must be reasons why they should at
these figures, since neither stock mas reaeLsu =.
rrsssnt priee on a sudden movement IheFs
30 a. ts true been a recent advance OF several
points in Manhattan on strong buying Ms
noIitan. ON the other hand. has sunk down Sow
from a higher level to its present figure -N
buying Of Manhattan Is said 70 have oeeh 'aS'-
Al, The extremely favorable results of the ehahs0
in the motive mower OF the road. which IS assei'
al In assure a speedy raising Of the dividehU -
per cent. But why should Metropolitan aStS
alIy paying Z, sell down TO the lever Of i'''i'
promised per cent stock?
Reverting 10 the subject Of the unrest OF iaoo''
and the danger of strikes on Western raiifOae'
IL would appear that advances IN VASES -
given based on calculations OF the ilO
cost Of Iiving-the substantial ground On
advances have been asked. There Is hO'io
cause dIsquietude in this. We know every -
knows. that the cost Of living has greatly IN
crAaeAs ana by, strides after the failure OF ias'
,-ser,e corn croD To ignore this fact. in It's re-
Io.t.v, a. 49,, ,oia At a fixed rate OF wage. WOuld