New-York tribune., 1902-10-19
financial.
The Financial World.


in the Street as it was yesterday and a. =. 'uan
the same day the week before Yestar5o. vas
was contentment and confidence; the D..-a .nsrs
Saturday gloom and uncertainty Tba us
change came with the settlement OF ~. sN
strike. This long drawn Industrial wa~ wa
two weeks ago, worked such demor,s.-4s
outside the region of Wall Street tba, Gun on
cial paper had no market. The countr,, -.
which usually take large lots Of this frorn
larger banks here refused TO take anv -
reported a fear was spreading in their ss,,,-
tina tthe coal famine would result in r,oto
outbreaks. and that scared depOsitors va- =
ready drawing out their money and hoarsi,u,.
The city banks had TO call loans on their W.
Street customers. or at best refuse new soc,.-
mediation. Liquidation had 10 follow. ut,
this dismal outlook. the market opened Moras-
morning.
1t was not cheerful opening, and worse VA,
to come; for within an hour stocks poured or.
in a steady stream and by noon prices had fan
en- anywhere from three to six points with An
parently more decline ahead Then it becama
known what had been done by the Presldan,
and Mr.. Morgan toward effecting a settemsr,
of the strike; and at once the whole temper
changed Before the close all the morning,
losses had been recovered. and something more
When the next mornings papers announced the
programme, it simply a question Of how
high the market would open; and since then
every day has seen prices gain something over
the day before.
Much of the rise has been speculative, due n
the renewal OF operations in characteristic style
by Mr.. Gates and his following; but he has
merely seized the opportunity afforded by the
immense sense of relief which came over the
public mind when the strike settlement Was
made. The long tension was broken, and the
market rejecting this. would have jumped any
way. Not this only, but the country banks at
once came into the market again and have since
last Monday cleared of the accommodations Of
commercial paper here.
Here we have a concrete example Of the way
the labor disturbances contracted the money
market and how their disappearance Iooseued
il again. IL would be nonsense to say the banks
should not have been frightened. The banks
can't control their deposits. If depOsiJors begin
to get scared and draw out, the banker must
contract his loans. Secretary Shaw has made
heroic efforts 10 meet a serious emergency; and
letters and kilograms from merchants and busi-
ness men all over the country have poured in
upon him. thanking him for what he has done
Nevertheless, if he had been working alone
along strictly monetary lines. without sinulta-
area Of industrial effort nothing that the Sec
retary has done or could do would have effected
much more than negative results; that is, he
would have averted serious financial trouble
But by no possibility could he have given Us
the rebound. rejecting the restoration Of public
confidence. which we have seen this week.
So far as Secretary Shaw can go. he has gone.
and the twenty millions he has put into
the banks here assure easier conditions. With
ordinary prudence. the money market should be
fairly comfortable during the crop movement;
after which. the return flow OF currency from the
West will fill UP the bank reserves in the Gus
tomary way.
The recovery of prices through the week has
been large. From the lowest of Monday il has
run TO ten points in B. & o.. fourteen in St Paul
(from $50 to 19D; eleven in Missouri Pacific: and
anywhere from five TO eight points in numerous
other stocks. The Gates people are credited
with doing the more spectacular work in this
advance. They. IL is asserted. rushed Norfolk
and Western eight points up from y to 50. 1t
was said that the dividend is 70 be increased
from =. which is now paid. 10 t. But the best
information Is that the increase will be to 5
per cent rate. which is more in accordance with
the conservative methods of the Pennsylvania
Company. which controls the property. Norfolk
and Western. however is a great property with
a great future
Some stocks which have risen more moderate
ly since Mondays drop. have done so because
they declined less. being we'll supported
throughout. Southern Pacific was one OF these.
the pool taking good care Of il when the worst
time came. Union Pacific was another. 1t went
down. but stubbornIy. showing buying on
scale. This stock is kept so steady, while still
swinging with the general movement Of the
market that il is one Of the best trading stocks
on the list; and seems safe 10 buy all
reactions. IL may he said. also. that Atchison
was well taken care of IN the general scramble.
The rapid movements of ST. Paul. and Of B. &
o. particularly are set down in the main 10
Mr.. Gates operations; while the Goulds are
credited with the manipulation OF Missouri Pa
cihc. There was a sudden reaction yesterday,
after the bank statement appeared. in B. & O..
which somewhat demoraIzed the list. and
brought the market TO an irregular and rather
confused close Bad news of some kind, or
profit taking. was talked Of Considering how
rapid and large had been the previous rise IN
the stock. IL is natural TO suppose that some
body was trying TO take profits. without respect
70 news good or bad.
When the market was fairly started on us
upward way on the strike settlement. strong
favorable influence was eNerted by evidences OF
reneve ed buying of the steel stocks. That these
stocks are selling far below their intrinsic Wor'n'
is certan-but II is also natural In the hrs'
place. they are new; next and most "eish'S
they are of great bulk. They are not dises'eu
yet Some day they will reach that conoli'"'
and then they will be selling considerably ABOVE
their present quotations. There are people ouS-
ing them now. who say that the immense HOii
mines and ore properties the corporation owns
in themselves assure the permanent va!ue u 'A0
securities: while the work which the eofP"
tion has now in hand guarantees the dlVlu7"1
for two years. The stocks are, therefore ai0I-
these prices a safe purchase either for specuiA