New-York tribune., 1903-06-08
CONDITIONS IN WALL STREET.

The movement of values in the current s'och
market is not in a direction that encourages
bull enthusiasm among speculative holders OF
securities but il fails TO reflect however corui-
tions that indicate a situaticn inimicai 10 'lie
best interests Of investors. Stock market quo
tations have declined TO an enormous extent
in the last eight months. but the actual worth Oh
investment issues has not been reduced A $40"
stock market panic has marked the course 'I
trading on the Stock Exchange 1t mas cdIIieu
heavy losses 10 many spectators, ana II mas
IMPOVERISHED men who year ago were boast
ing of their good luck and buying STOCKS a'
exorbitant figures. This decline has not. how
ever. checked industrial activity. nor has it un-
dernined the foundations Of the country's fnan-
cial and commercial prosperity. 1t is true that
the decline IN the last month has been accom-
panied by indications Of healthful reaction IN
certain lines of trade. as, for instance, in iron
and steel but there have been however, no signs
of Generalization in business and no suggestion
that the hard times of the 1893 period are to De
repeafed Stock market troubles may be traced
70 the evil practice Of overspeculation that
marks all times OF business expansion to the
issuance Of securities in excess of the markets
power Of absorption. and TO an overextension
Of bank loans the last named being develop
,,ent incident to the increase in corporate capt.
talizations.
The advance in the money market last fall
checked riotous bull speculation in securities
and induced a conservative attitude
among railroad and general business interests
in the matter of capital extensions The fact
that the pace had been too rapid began to be
errreciated and as a consequence the check
rein was frightened. with the good effect Of
ouieting gaIloping speculation sudden and
in str N
might have carried bankruptcy in its train.
Fortunately the turn from excited bull activity
TO conditions the very opposite was brought
about slowly and soberly. and without the ac-
compartment Of failures or financial troubles.
save the losses suffered by spectators whose
enthusiasm ran beyond the limits of common
sense. And these spectators were not Of the
milk and water variety. They were men who
had accomplished much in business and in
stocks. men who had risen from the ranks to
positions OF recognized Importance in the rail-
road and financial world. They merely over
estimated the ability of the country to absorb
new capital issues: they overestimated the pow
Of the money supply to meet the require
nents of proposed corporate extensions, and
they overestimated the strength Of their own
resources TO finance their heavy obligations.
There are, of course, some wise people left who
are telling the world that they knew q
later but the majority of people are frank
enough TO admit that they did not see in
conditions at that time any indication of the
troubles that followed A healthful readjust-
rnent has been in progress since last September.
The situation has been strengthened. and
further liquidation of speculative holdings will
only add to the Improvement under way.
A careful analysis OF the Industrial and fnan-
ciaI situation in the United States does not war
rant the conclusion that business prosperity is
at an end. The country is in position 10 with
stand the shocks Of labor troubles and poor
crops AS the former, IT is encouraging TO
note that the strike situation various lines of
industry is Improving and that the firmer stand
that employers are taking in regard to the ex-
orbitant demands Of labor is having a most ex-
cellent effect in bringing employees to their
senses The crop outlook is not nearly bad as
recent reports indicate. Western floods have
damaged the growing grain in the lowlands but
the greater part of the wheat and corn belts in
the West does not show conditions that war
rant the pessimistc reports nut forth in the last
week Winter wheat will not make the yield
indicated by conditions Of May 1, yet the
early growth Of the cereal was so nearly perfect
that great deterioration may take place without
exerting serious influence on the final harvest.
Planting of corn has been delayed, and danger
TO the crop may come from early frosts before
a
centage than at this time in any preceding year,
and the prospects do not favor big yield or
cheap prices. The drouth in the East has done
great damage the effect of which on the East
era farming community will be reflected in de-
!. creased purchasing power and smaller profits
N for merchants Strikes have also decreased the
business of the tradesmen and general pro-
ducers the influence of which is factor max
ing for quieter trade conditions. Factors Of this
character are not, however, undermining the
foundations OF business There is no structural
weakness IN any department of trade and
finance Railroad earnings continue heavy
throughout the country, and reports from the
commercial agencies show a large volume CT
business despite floods. drouths and labor dis
turbances In the month Of May the gross earn
tngs OF railroads reporting showed q gain Of
over Il per cent over the same month last year.
Net earnings are also increasing
Call and time money rates strengthened at
the close Of the week. and sterling exchange de-
veIoped a heavier tendency owing TO the ad-
vance in the discount market. A large amount
OF gold went out IN the week. but the immediate
prospects do not favor further heavy shipments
Of the metal Upward of S17.0o0000 of the pre-
cious metal has been sent out in the current
movement but the loss 10 the New-York banks
has not been heavy. as receipts Of currency from
the interior have about offset the gold with
drawals. The country is lquidating its debts
abroad and preparing the way for gold imports
In the fall II is estimated that over $3.50
100000 of our foreign Indebtedness has been
uouidated in the last few months through the
transfer OF foreign loans TO the local banks,
through gold exports and the excess Of merchan-
disc shipments over receipts Money supplies
in this country are constantly increasing On
Ju1e / the amount of money IN circulation in