New-York tribune., 1903-07-27
THE WEEK IN WALL STREET


The last week has been an eventful one in the
stock market. for in that period not only have
many new low records-some the lowest OF the
season and others the lowest ever reached
been made in stocks. but also the remarkable
immunity Of the market from failures during
the long decline in prices has reached its term.
two important Stock Exchange houses having
last Friday found themselves compelled to make
assignments. The surprising feature of the sit
uatioD is that suspensions could have been so
long deferred and it will surprise and startie
nobody TO hear the announcement of one or
two OF three additional failures this morning.
The firms which have already gone under have
suffered principally because Of their identihca-
ton with certain "specialties," in efforts to
support which they had been obliged
10 take heavy offerings, which the banks
were finally unwilling to accept longer as col
lateral. The further failures, if others shall
occur. will probably be referable to similar
cause Several houses have undoubtedly been
perilously near suspension within the last week,
but have been tided over their straits and VIII
survive. A few others. none of them OF the
first rank may have TO sUspend--s contingency
which has been pretty well discounted on the
stock Exchange and which served TO check the
little rally which set in late on Friday after
noon. after the second Of the two failures which
had been looked for by the Street had been
formally announced from the rostrum OF the
Stock Exchange.
Professional feeling in the Street on Saturday
was blsckly bearish, and in the heavy clouds
lowering over the market skies there was no
rift through which might be had glimpse OF
golden sunshine of blue Yet TO men more
adyaufageously placed for observation. the out
look seemed far from hopeless From their
,,oiut of view. indeed, the Norcross failure,
which came in the middle Of the week, ap-
pesred of worse omen than the Taylor and
STOW collapses. for that failure, direct result
of the long and bitter struggle between the
building constructors and the labor unions in
various parts Of the country. fixed attention on
the fact that the suspension during so many
weeks of the gigantic aggregate of construc-
tion work lately under way must inevitably
mean. serious curtailment of the sales of
structural steel and iron. and of many other
products necessary in building operations, with
a corresponding weakening of the fabric of in
dustrial activity.
The building troubles, however it seems eFl-
dent are now in fair way of adjustment.
The liquidation which has been in steady
progress during the last few months cannot find
its explanation in STANDARD Oil manipulation"
or any similar theory. any more than the fail
,rc of Talbot ]. Taylor & Co, can be directly
ascribad TO 'Harriman's revenge on heene" or
Whitney Ryan revenge" No doubt Mr.. Harri-
and his associates in the Union Pacific,
and Mr. Whitney and Mr.. Ryan, view with more
or less equanimity the plight of the Taylor firm.
powerful interests has been directly instrumental
IN bringing about the downfall of the firm with
which Mr.. Keenc is so conspcuously and in
iimately identified is far from probable as
10 be virtually Impossible. The failures of the
last week resulted. as the failures of the com
ing week, if any there shall be, will result from
the vast oyer-eXtension of bank credits during
the last TWO or three years.
These credits it became necessary to curtai il
the general business Of tie country was not to
he seriously and even fatally crippled and the
curtailment was enforced in the quarter in
which the expansion had been most marked and
rapid-in Wall Street This is without doubt d
great country, but the time is not yet when its
securities values can be placed 9 permanent
. or even / per cent basis.
In the opinion of the best judges of market
conditions. prices are now at or close TO an in
Vestment level. Europe has been buying for in
NfStA44tNl QuIlnS the last week, ana InerS mas
been evident much domestic buying of the same
character. although it must be noted that in
The course Of the latest decline in values there
has yet been witnessed the rush of the
bargain hunters" That will come when it
shall have been decided whether or not there
are TO be any more Stock Exchange failures.
The bank statement of Saturday was in a
measure disappointing. in that it revealed an
increase of nearly 100000 in loans in spite of
The heavy market liquidation which had been
continuously in progress, and i'll spite of the
known fact that a considerable part of the
Pennsylvania Railroad Company's big loan had
been paid off i'm the course OF the week. \ IA
Norable feature. however. making it increasingly
probable that the excessive stringency of 1902
due 10 crop-moving requirements. viii not be
duplicated this fall in the money market, was
The fact that tho surplus reserve increased more
than S5.60oo00 for the week. standing now at
S1S,915,4OO. as against $15,502, 400 at the cor
Tegrondfnz date wear