New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-10-19
THE WEEK IN WALL STREET.


Gespite the low prices at which stocks are SELL
iag and the mournful forecasts OF the country's
industrial activities as made in Wall Street
Conditions in the business world show few in
frinsioally weak spots Notwithstanding indica-
iions OF a normal trace reaction. Il is now gen.
orally admitted that the volume OF business in
this country may in the next twelve months
show falling off from the unusual activity OF
the last few years. but sane mind can find in
this prospect adequate argument for the sacri-
fee OF sound investment securities. Sensible
people not parting with their securities. In
the last week vigorous efforts were made to
drive the investment public into panic. but the
heaviest sellers OF stocks were the professional
traders. who were forced to cover their con-
tracts in a rapidly advancing market at the
close Of the week. This element simply over
sold the market in the early part of the week.
and being without the support Of public liqui-
dalton. Il made scramble on Friday and Satur-
cay 20 recover it's position
In :he week just closed there was in the
movement Of securities much encouragement for
the advocates Of higher prices. despite the weak
ness that prevailed in the first few days Of trad
fns. The fact that the public did not respond TO
professional invitations to sell ought TO create
better sentiment in ali circles. Disclosures in
the shirbuilding case were counted on 10 induce
n panic among all holders Of securities. hut the
good sense Of tn American investment COM
rlunity made such development impossible.
Owners Of securities are beginning to realize
that at present prices there is nothing in con-
6itions a Affecting the actual worth Of good
stocks and bonds that warrants sales. and as a
consequence the professional element should
from now on have difficult time In bringing
about serious declines in values. or course ii is
possible that forced liquidation is not vet over.
In this event lower prices viii be made. but all
good market Judges advise investors TO main
tain firm grip on their securities possessions;
10 forget if possible. that there is Stock EX-
change and to remember that sound invest
rnents are not going out of the dividend column
The actual worth Of investment securities is not
about TO undergo serious depreciation. There
doutless will be troubles in the business world,
IN the course Of the next few years;
but il should be borne in mind that out
side of some Of the badly organized industrial
concerns. such as the Consolidated Lake Su-
perior and the so-caled ShipSuilding Trust, the
last seven wears have witnessed remarkable
progress in all that goes to make corporate en-
te-prises sound. Railroads have been reorgan-
lied and placed on A basis to withstand lean
years without passing their dividends. Concen-
t-stion OF control both in railroad and indus
trial concerns has increased earning power
while il has decreased expenses. Vast expendi-
lures have been made on the physical betterment
Of properties and so extensive has the outlay
been on this account that railroad companies
will be able in case of a few years Of depres-
sion TO reduce their expenses to an extent that
will offset the loss in income. 1t is well to con-
slider the possibility OF business contraction and
Il is also well to consider the strength or weak
nd he Of
trade depression. In its present frame Of mind
Wall Street would be nightly disappointed II
period Of business famine should not develop.
Unfortunately for the pessinists. there is moth
:ng in the situation that foreshadows more than
normal trade reaction.
II is apparent to well informed people that
various questionable methods have recently
been used 70 create. if possible. stock market
panics. notably in Pittsburg. Efforts OF this
character not infrequently mark the end of
bear campaign. They often the dying gasps
Of army IL retreat. and it is believed in some
circles that thu early week manipulation repre-
scented the mai efforts Of a WORKOUT set OF
gamblers Wall Street. however is a wonder
full place for surprises and the operators for
higher prices who depend on borrowed money
may do well to proceed with extreme caution.
While the banking interests are discouraging
further operations for lower prices. they are
4
market at present one thing however. is self
evidert-namely. that the stock market is en-
titled 30 a rally of substantial proportions.
fessimism has run not in Wall Street, and
l. should be the duty Of every conservative man
who knows the extent OF the resources of this
country 70 work 10 bring about = feeling Of
confidence IN all circles ia the future o. the in
testment nlarket
That conservatism prevails i'm corporate man
agement is reflected IN the reduction ia the
United States Steel common stock dividend. It
If pity, however. that the management did
not adopt his policy two years ago. II Steel
common had not been placed dividend basis
there never would have been a necessity for ;he
issue OF SJoecooU0 o. bonds Tor working, capi-
tai and Improvements. The plea is made, how
ever. that the rights OF the stockholders de-
nanded dividend The Amaigamated Copper
Company declared its regular quarterly dividend
in the week. it's earnings justfying the distribu-
lion. Reading directors declared the first divi-
dend on the second preferred stock. earnings i'm
this case also Justifying the % ymeut Such in
cidents not especially encouraging for the
people who believe the country is going TO rack
and ruin. Forced sales OF the railway equip
inert shares carried the prices FOR these issues
20 new low record figures. but they did not re-
oUce the actual value OF the securities The
American Car and Foundry Company is earning
far IN excess Of dividend requirements the COM
pany has a large working capital and no charges
10 nee; above its preferred stock dividend The
regular dividends have just been declared and
IL is safe 10 say that the preferred stock VIII
never lie taken from the dividend column. These
factors. however. mad little effect on Wall
Streets distorted speculative sentiment early in
the rieek.
Monetary conditions q: This centre and