New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-09-20
Financial.
The Financial World.

Corn and Steel ruled the market the past
week. II could have stood the reports on corn
but the selling Of Steel too much Tor IT. o.
and the week ended with an average comp7r'-
tive loss Of between two and three points. Inis
loss would undoubtedly have been much greater
had the frosts in the corn belt been more dam
aging than they were: as &c isl. they did COM
paratively little harm: and az every day tnNF
hold of now counts a week it is pretty SAFE
10 reckon on a crop Of about 1000 million bush
els rather less than moran estimate when
seems TO 10 concurred in both by Wall street and
Chicago. that j. the gratis and securities mar
kets Assuming that this will DO the output. it
follows that We have moderate crops Of wheat
and corn. enormous hay crop one cool and
wet OF the summer being ideal weather f7r hay).
ther less than the average Of fruit and veg
eta bic crops and with the outcome 81 the cotton
crop vet somewhat in doubt That about sums
up the agricultural situation. and ID win DO sesu
that while there Is nothing in IT. upon which -
found a boom there Is little upon which n sell
stocks. II IS a fair average proposition.
The continuous decline I'm securities thNrefor'.
must be set down 10 other causes than crop
conditions. and il is Of course. 20 he found n
the speculative situation. 70 which the ceaseiHs'
selling Of the steel stocks affords an index
The new low record phrase has almost n"
come = foke-rather grim one Yesterday
Steel common made new one az II. The fa~
before Their had been a general attack On 7N
the industriaIs on the list which represented
the trades connected with metals Or railroad
supplies: as Pressed steel Car z Fouud-r.
American Locomotive. and others. An incident
Of the dav was the decentralization on the Pitts-
burg stock Exchange the dispatches stating
that quite 10000 shares were done a. panic
prices This NAV cause a smile, but iu reality
Pittsburg represents very much more than tN7+
10000 shares. the principal PittshurE mon H'-
Ing heavy traders I'm Wall Street The .0'-
lapse on their local exchange Indie te= bow
these men are situated here. and is important
10 that extent.
One Of the striking features % the decline i-
Steel is that since the stock broke well below
~. it has come out at frequent intervals ir big
single blocks blocks so large. that had uhr tho
buying been only slightly less ready than The
selling. Steel as some one has s1i5 would 'r
down in company with Bay state Gas. Tho
question il asked. who are rte people hat ha~>
these immense amounts 70 seI9 Md WHY '7
they sell at these prices The most reaso0aa--
explanation is that they ave people or -srza
means most OF whom have been connected vf'r
the original creation Of the operation. or ,-=
subsequent financing. and who arc obliged f7
sell whatever they have that is marketable. Pm
order to take care Of their commitments tr E--
marketable things. We know that I'M the c7ea
their price followed the call for an irstalue--
of the underwriting subscription. and The r-a-
for that was plain. Tn respect to rho eto~,.
the reason is not plain; but the grounds IN.
inference are strong. and summed U0 simply r.
is that the sellers have urgent need for money.
and must get il at any cost
II this he true and most probably fr Is t~1s
We are forced to the conclusion thatthe Iiqud7-
ton in the stock market is not so Far over az
had hoped and believed II IS evident that
We are stiu witnessing forced sales At prices
representing values but the necessities %
the sellers There IS no telling where Steel viii
go under pressure like that: but as with forced
sale at auction. when the supply from the one
source is exhausted. there are more OF the
goods to be had at Hduidatng prices
The next dividend on Steel should be declared
the first Tuesda,- IN October. Betting i'm various
forms is getting TO he rather lively as % what 20
viii be- or whether IL will he passed aItoEethe~
It is noticeable that those who offer to bot on
its being passed ask odds 81 To- l. Sales %
the dividend at - cents on the dollar have been
recorded The earnings Of the corporation this
fiscal year everybody knows must he less than
last. This goes without saying Trade coudi-
tions make il plain But the corporation car
stand a good percentage Of loss. and st5U earn
the dividend. The question is whether the loss
will be greater than the percentage 70 car ST -l
In respect 20 other companies whose stocks
have fallen this week fl is said that the ra..-
road companies are largely in debt 20 them; and
that the discounting OF the railroad paper has
been considerably hampered by the state Of tho
money market Final payment or these debts
largely waits on the bond market which a- this
time Is 70 put II mildly. rather fat
It is scarcely necessary % saw that p spe-,-
IatiOn in the stock market went on what vas
past. rather than on what was expected -
come. we ought to be having good upward
movement now. because the annual reports -
the companies daily coming out. show an
CaTlent years business with nearly an - them,
All report r more or less substantial surorrg
over the dividends paid. and those which have
made monthly REPORTS since the close o. Tbs
fiscal YEAR. report increases over the Same
period last year. But Wall Street is fin a rssSf-
mistie mood II does not care about last year;
thinks il sees decreasing earnings as this year
progresses; but most it sees Is this that ~
the necessary capital expenditures this wear
there will be hard scratching. because the pub
lie is already fun up with bonds
II is now beginning to he asked i0 wan
Street when conditions viii be such that .rs
market will turn-not mere rally. to- no fol
lowed by another and further faII. bur when %
viii have touched bottom and started upward
again for the long pull Opinion from high
sources IS. that the money market viii give trs
sign. IL was from this direction that tho fret
sharp warnings came that speculation had been
overdone- The rise Of interest rates here and
In Europe also announced that the Ioau4rIs.
or Investment surplus Of the respective CONF
munities. had been temporarily used UP TN.
savings Of the people. or surplus Whichever