New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-09-28
THE WEEK IN WALL STREET.

market was depressed and at times 6emoralized
10 an extent that caused extreme uneasiness IN
many quarters. Urgent Liquidation was noteo'
end many holders simply sold tLeir stocks for
sny price they could secure regardless OF the
uctual value OF the investment. The profess
sional element naturally took advantage Ok TINS
selling 10 bring about a materially lower quota
zion level. and the ease with which prices
Hfolded created a most unfavorable impression
among timid investors. who believed that the
decline foreshadowed a depreciation in the IL
trinsIc worth OF sound investment issues. There
IS little ground for this belief as there is moth
sng "a current conditions that points toward
general business insolvency. Stock market
values have more than discounted possible trade
reaction and the current downward movement
must therefore be ascribed 10 causes other than
those which so many people apparently believe
are the controlling influence IN the present Noui-
dation
The decline IN stocks 70 Cue IN great part 10
she overspeculation Of year ago. 10 the tying
up OF capital IN improbable concerns. 10 the
failure Of the public 10 absorb tho securities that
Fyndicates manufactured. 20 the personal neoes-
Fties OF capitalists who have become involved IN
underwriting syndicates that have not been sue
.essful. and 10 the increasing discrimination OF
banks in the matter Of stock loan collateral.
IN the last week the banks called FOR increased
,nargins and the substitution Of new collateral
5or securities which had become especial bear
targets IN the stock market Many sales OF
stocks were due TO this factor. OF course. there
have been other influences At work In the last
sesr affecting securities values. but. before
stated. the decline IN prices has run far beyond
the level warranted by conditions underly ing
rhe oountry's business. The labor situation has
llurt Industrial activity. but il has not placed
she country IN a position where sound invest
Iuent issues VIII be forced 10 The non-dividend
paying column. Conditions in the iron and
steel market suggest "a lighter volume Of general
frade IN the next twelve months. and the high
sate for mercantile loans indicates TO many
minds that business expansion viii be checked
FOR q time period II rest I'm the business
world after the last SIX wears Of feverish &C
fIvity wiz not inJure American Industries. in
deed. Il win strengthen the situation. and be
effective In increasing the actual value Of IN
Nestments. a reflection ~ which viii eventually
l'e seen in higher market quotations. The com
,uercial agencies ind few unsound spots IN the
Uountry's Industries They report however
conservatism and caution and a quietinE down
az the demand from consumers.
Fortunately. this years crops nre large. and.
rs the foreign harvests have not been rar-icu-
larly satisfactory. an active demand for our
hreadstuns may he expected. This is fore
Swallowed IN last weeks increase in the exports
~ wheat. Prices for wheat and corn are lower
fhan they were week ago. and as the corn
crop r. now practically safe from injury by
changes in the weather. the prospects % the
huh pool IN the Chicago grain market are dis
couraging. Cotton is also progressing in a man
ner that ought TO dissipate the IDEA OF a small
crop. The heavy shipments 81 currency 10 New
orleans win he followed by large receipts OF
cotton bills in the foreign exchange market and
s. Is therefore not likely that exchange rates
viii rule az high level again this season. For
eign bankers are not now willing 70 make pre-
dictions regarding the possibility Of gold I'm
ports this fal. hut some venture the opinion that
n possible demand from this side for the yellow
metal VIII he supplied by Australia rather than
direct from Europe. especially as Germany is
Iow an active bidder for gold.
The demand FOR money from the West IS not
:et heavy owing in part TO the lateness OF the
crops and 20 the policy OF Secretary Shaw in i'm
creaeing government deposits in country banks.
in the opinion Of many bankers the possibility
81 money market disturbance this fan is now re-
moved. as refunding operations viii increase the
amount OF low price bonds available for de-
pOsits against banknote circulation and for Sc
CURLY for government deposits. while Secretary
Shsw's plan viii release IN principal and interest
SIS. SIS, 500 from the immediate payment Of the
Is OF 1904. The premiums that VIII be paid in
,efundiug viii aggregate S1oo0Ooo. The hanks
that have had on file with the Treasurer Tor
fhirty DAYS or more per cent bonds as security
for public deposits viii be permitted 20 suhsti-
7ute approved State and municipal bonds there
Tor. which VIII be accepted az - Ter cent - their
Jar value. can money now rules at ~ Per
cent. against a level of from 4 10 20 per cent a
scar ago
United States Steel common. the preferred
ard the per cent bonds made new low records
in the week. the common sinking TO level that
represented an investment Weld OF over % per
cent the preferred 90 q yield 81 over II per
cent and the bonds TO yield OF per cent.
Wei Street believes that the dividend steel
common VIII not be maintained. preferriug 10
base its deductions on the price Of the stock
rather shan on assurances from so-callec OFF,
cial sources while the decline may foreshadow
o. change IN the dividend on the common stock.
g. is believed in well informed quarters that
forced liquidation has been going on in this
ISSUE by people who have been compelled to
faise money 10 protect their interests elsew here
IN the market or in outside Affairs Weakness
in the industrial stocks in the last few days has
been accompanied 10y many rumors regarding
various properties. but IN the greater number
az instances these rumors have been wholly
without foundation. II the dividend on Steel
common Is passed the stock viii doubtless sell
as high as. II not higher than at present while
the effect on the preferred ought 20 he worth
ten points more
While new low prices were being made in this
market similar movements were reported on
the London Stock Exchange. especially for con-
soils which declined 20 s. the cheapest price
since the Overend-Gurney panic OF May. 1866.
when s4ss was reached. Al the outbreak % the