New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-12-18
The Financial World.

A week ago in this review the statement was
made that: subjected to abnormal test the
security market responds with unexampled
virilitv giving clear proof OF inherent strength"
Rendition of that statement to-day Is justified
lis an accurate diagnosis Of market movement
The weeks market opened with a continue
ton of sensational attack, under which the
stocks which were made special targets were
forced down to now low quotations; Amalsa-
mated Copper recorded price Of G11a; preferred
Steel sold on Tuesday at S4A: Sugar touched
1861 Yesterday closing prices for these issues
were Amalgamated Copper 6TM, preferred Steel
OH. Sugar HOS.
Sensational attacks are found powcrless
against the intrinsic strength of dominating
conditions The artificial yields to the real; and
the chief sufferers in tho now vanished reaction
were spectators who did not heed the warning
adequately to protect their holdings. 1t Is the
unanimous testimony OF brokerage houses that
no scare developed among actual owners Of
stocks-that the liquidation of securities owned
outright was too inconsiderable TO be a percep-
tbie market factor
The financial community is returning to con-
sideration of facts versus fakes, and the week
furnishes some notable examples of progressive
development Atchison announces a plan for
a new issue of S50OOOO0O bonds, the proceeds
to be devoted 10 extensive betterment of prop
erty, and ]. P. Morgan & Co. stand ready TO
take the entire issue. This news met with the
usual bear criticism. followed by snort selling of
Atchison which resulted in price of 81 on
Wednesday--its closing price yesterday was
S51b These bonds are to be convertible into
stock and the plan will doubtless carry with IL
rights to present stockholders. Fisk & Robin
son advertised in the mid-week a sale Of So
100000 bonds of the Buffalo and Susquehanna.
the lists to be closed at noon on Saturday. The
entire issue was subscribed for by noon Fri
day by individual investors mo local houses.
and went to every state in the Union; the bonds
were issued at 1O1 and now 1O11e. plus in
terest. Speyer & Co and Harvey Fisk & Sons
Jointly offered S40O00OO0 Mexican government
bonds virtually all Of which have been taken
Kean Van Cortlardt & Co. offer SS2OOOO0
Detroit United Railway bonds for which the
subscription list was opened Yesterday. the clos
ing date being advertised next Thursday. but
from applications pouring in II is certain that
over-subscripton will result earlier. These IL
Illustrations Of public demand for good securities
are not exceptonal-no good bond or stock issue
for the past year has failed TO find demand ex-
ceeding supply
And this great investment demand is the
primal cause-and the valid cause-of security
market strength. Idle are all efforts TO create
alarm while the money Of an informed public
in hoOd-tide volume seeks investment The re-
dictionary movements of last week and the pre-
ceding week owed TEMPORARY success almost en-
tirely to the creation of tremendous short in
terest. much of which still remains uncovered.
Significantly encouraging is the increase in
LoulsvlIe's dividend rate. placing that stock
upon a per cent basis. The American policy
has been pursued for years Of diverting earn
ings TO construction and betterment accounts;
literally hundreds of millions of dollars have
been thus applied. raising the physical stand
ard II our railroads to a point where they
can readily handle the traffic pressing upon
them in increasing volume. The future
will not call so heavily upon earnings. and
many railroad companies will begin to dis
tribute surplus accumulations TO stockholders
in the shape of increased dividends Some
probably ready to take speedy action in thar