The sun., 1903-11-25
FINANCIAL AND COMMERCIAL.


ness on Monday afternoon that the specula-
tive interests which had been 30 successful
in depressing the price of Republic Iron
and Steel during the day had, emboldened
by their triumph in this particular, de-
termined to make campaign Of like nature
to-day directed against, many other OF the
minor and so-called weak industrial issues.
This programme was carried out to the
letter. Leaving the railroad list alone,
the bear contingent sold with great freedom
the preferred and common shares OF the
Corn Products, Pressed Steel Car, Republic
iron and Steel, American Locomotive,
American Car and Foundry and other
similar companies and succeeded in forcing
large declines in all the stocks that they
attacked. There is no doubt. OF course,
that the assault dislodged many unpro-
tected holdings of these securities and that
the recession in quotations, while orlginat-
ing very clearly in the manner described,
was vet caused to considerable extent by
forced liquidation. There was no more
reason for selling the shares of these conf
panies to-day than has been fully present
in the minds of Wall Street for months
past, but, save in the case of one company.
there is not the slightest hint of anything
that can be regarded as an adverse develop
ment affecting any one of them. Generally
speaking of course, it is a truism IN the
financial world at present that the great
trouble which now confronts many OF the
indust rial concerns organized in our country
in the past two or three years is their large
Capitalization and lack of working capital.
Where prudence and conservatism guided
the formation and have attended the man
n ,f ha
have not arisen. Most of the older indus
trial companies have had their trial by
fire in this way and are now in "A safe posi-
ton. Another difficulty is that in the case
of many manufacturing industrial con-
Germs the high prices which for one or two
years they have been compelled 20 pay
for the raw materials used in their busi-
ness have heavily diminished the profits
Of their enterprises. On the other hahd.
it should be remembered that the securities
of these companies are still almost wholly
in the hands of their original possessors
In the general run of Wall Street commits
sion houses dealings in them are a rare
event and the influence of fall IN Their
price, therefore, is not widely felt
Pessmistic views regarding the condition
of many of these companies must, also,
be based upon fears for their business in
future rather than upon consideration of
their business at present inasmuch as
many of them are able to show large cash
surpllises to their credit and an abundance
of orders on hand. 1t should also be borne
in mind by Wall Street spectators and
investors alike that sweeping condemnation
of industrial companies is both unsafe and
unwise, that very many of them can show
actual cash assets equivalent to their present
market valuations, that affairs with some
of them are in very much better shape
than they are with others, that. although
dividends may be reduced upon common
or even upon preferred shares, this docs
not mean that the companies in question
do not possess property of great and un-
doubted value. just as the operation of
selling these shares short at the present
level is extremely hazardous, so there are
among them now, beyond any question,
decided bargains awaiting an investor who
paws cash or nearly cash for what he buys.
The general railroad list was as has been
stated. comparatively little affected to-day,
and was, indeed. in the forepart of the day
strong even to buoyancy. Profit taking
was noticed in the Southern Pacific shares,
but there was large buying, especially for
London account, in Union Pacific, Louisville
and Nashville, Chicago, Milwaukee and
St. Paul, Atchison, and, in fact in all the
standard railroad stocks. Among the in
dustrials. American Sugar Refining was
notable exception, touching the highest
figures recorded for it on the present move
ment and maintaining firm tone through
out the day. The traction stocks We're all
active and strong. although their price re-
acted with other securities in the afternoon.
1t is not at all improbable that taking the
market as a whole, an advance in the aver
ago price of stocks rather than decline
would have been chroniclcd at the close of
the market had it not been for a stiffening
in money rates in the late afternoon. This
encouraged the bear contingent to sell
stocks generally and made the tone of the
market weak Call money loaned at one
time at 81 per cent, although most of the
davis loans were made at much lower fig
ures. The advance in these rates had an
immediate effect, of course, on the foreign
exchange market. Under their influence
sterling exchange dropped sharply. so that
the question Of gold imports becomes once
more acute. Indeed, these imports seemed
to be taking place quite unregulated by the
orthodox rules supposedly governing such
matters. Boston bank announced too
day that il was bringing over 81 ,cCort0 IN
gold, although the engagement was made
some days ago, at tim. when tho opera
ton. Judged by ordinary standards, would
have been Improbable. The truth is that
the sudden enlargement Of our credits
abroad, due to tn, crowding into a snort
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