New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-11-17
THE WEEK IN WALL STREET.


have lost all idea OF the position Of affairs out
side Of Wall Street, and as a consequence they
can see nothing ahead but industrial depression
and national bankruptcy Wall Street a lit
tie gloomy world last week. Elsewhere the
skies bright and promising. Bear cam
paigners enjoyed one long field day. and, elated
by SUCCESS. saey were bnld enough TO predict a
continuation of the downward movement.
Further success by the bear element depends
altogether its ability force liquidation
Selling in the last week enormous. and st
would seem If the market had been pretty
thoroughly cleared OF accounts of pools and
speculative syndicates; and it also is probable
that the short interest has been heavily
panded.
The technical position Of the stock market is
strengthened by each decline. AT present there
are probably more strong accounts in Wall
Street houses than ever before recorded, while
there fewer dangerous pool holdings than
at any time in several years. Pools particularly
those made up of the bold Western plungers.
We're the heaviest sufferers in the decline OF the
last week. the so-called lambs were forced
out several weeks ago. The theory however.
that the Western element has been driven TO the
verge Of bankruptcy is not considered by care
ful observers. 1t is likely that the losses Of
the Western element have been heavy. but il is
safe 10 say that in the next bull movement this
employed in conducting the bear campaign last
week suggested the approach of the end
of bear activity. Rumors without responsible
origin were freely circulated Mendacious re-
ports were put out affecting prominent men
and banking institutions. Disqueting state
ments calculated to injure confidence in bust |
ness circles were made in various quarters of
the street And while all of the nasty work
was being done in Wall Street railroad earnings |
ings indicated greater prosperity than ever be- |
fore. and movements TO cement harmony be- |
tween capital and labor developed.
One Of the most important DEVELOPMENTS Of the |
week was the announcement by the Pennsylvania |
Railroad Of voluntary increase of 10 per cent !
in the wages Of its employees who receiv- !
ing less that 5000 a month. This means an adj /
dtion Of about S5OO0000 TO the company's pay |
roll, and is equivalent TO 3 per cent the stock.
A number of Eastern and Western roads have !
recently increased their wage schedules. and the
chances that many more companies viii take
similar action. In advancing wages the railroad
companies recognize the increased services given
by their employees in the last year. and the in I
creased personal expenditures Of the men
count OF the higher cost of living Signs of dis
content in labor circles have been among the
few adverse factors in the general situation. and
the tendency TO increase wages and TO settle |
labor disputes by arbitration should therefore |
exert a favorable influence on sentiment in the |
business and investment field. For the moment !
the stock market apparently is not in position /
TO be materially affected by such an encourage |
ing development the advance in wages among
the railroads. but ultimately this and other IA
vorable factors will receive the recognition that
their Importance warrants. 1t is folly to sacri-
flee good stocks at this period People who own
stocks ought TO forget Wall Street for time
and the circus that is going on. 1t is not a good
time for small margins. but stocks purchased on
big margins at prevailing prices viii be valuable
assets when Wall Street returns TO a normal
basis.
Bank conditions sound. Exaggerated
statements are being made about extended bank
loans but careful study Of the situation devel-
ops no cause for uneasiness Bank loans are
backed by sound collateral and since September
there has been reduction in this item OF $40
6l5.S00 Money is beginning TO from the
interior this centre gold exports are not likely
az present, and local bank holdings are larger
than customary at this period Of the year. The
export trade is heavy. and all indications favor
increased shipments Of general merchandise
throughout the next twelve months. For the
month OF October exports showed an excess
over imports in value Of SO 692 Do despite an
increase in imports in value of about S6.0O0.00O
Exports slightly under those of October a
year ago but with the exception Of that time
and October 1900 the figures were the largest
for any October on record. Notwithstanding the
theorists who declare that the end of industrial
prosperity is at hand. there is nothing in
foreign trade in local business conditions that
suggests a elimination OF the present era Of in
dustrial activity. The big harvests Of 1902 viii
be important factors in adding wealth to the
country. Final estimates OF the Agricultural
Department at Washington SHOW the biggest
corn and oat crops on record. and average
wheat yield indicating large surplus for
port requirements.
The iron and steel business is in good condi-
iton. despite Wall Street stories 10 the contrary.
as according TO official reports the trade in this
country is in a better position to-day than ever
before IN its history. Earnings are large. and
production has not yet Overtaken demand. In
certain cases there has been a reduction in
prices. while the chances are that lower figures
may be quoted in all departments in the course
of the next six months. Lower prices however,
for iron and steel products viii have the effect
OF increasing the export trade. For the months
OF September and October the United States
Steel Corporation showed an increase in earn
ings OF s.. 652.26l compared with the cores
ponding period year ago. Net current assets
as of october presented a gain of $33 ;I37 $50
as compared with October J. 1901. The position
OF the iron and steel industry in this country
IS a general trade barometer. People who are |
therefore, uneasy over the business situation
OF the United States advised TO make care
ful and impartial study OF iron and steel trade
conditions. Vigorous efforts are being made
10 reduce the market value OF the United States
Steel securities, but these issues show a remark
able resistance 10 bear pressure. The iron and
steel stocks. as well as most OF the industrial