New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-11-06
The Financial World.

the memory OF Wall Streets present leaders has
such marked equanimity been manifested as 10
election results. Reason for this Is not obscure
Wall Street has weighed probabilities. tested
the current of public opinion. and made up its
mind that national endorsement OF the admin
istration Is practically assured. This is re-
fected in the market Itself no less than in the
betting odds prevailing the curb. Fortu-
nately for the financial world issue has been
discussed threatening existing conditions. Tie
vital question of the gold standard. which was
the sole contention in 1896 and 1900. has not
been reopened-arsument has been largely aea-
6emic.
As result the security market has moved along
normal lines governed by industrial and fnan-
/ cial conditions OF She most cheerful character.
The prominent feature of the weeks trading has
been steady improvement in the securities Of
industrial orporations-particuiarly the steel
companies.
Leadership has naturally vested in the Sc
curities of the United States Steel Corporation
These have scored material advances for valid
reasons. The official statement OF earnings for
the quarter ended September 80 put efectUaI
qUietus upon bear prophecy-trade conditions be-
ing revealed OF inspiriting character. But there
is particular feature which has escaped pub
lie observation. At the beginning OF this year
the United States Steel Corporation made a
to credit the company with profits arising from
intercompany operations. such as the sale % coal
and coke from its mines 10 its manufacturing
plants. and kindred transactions. Had this
change in the keeping of accounts not been in
force the profits for the quarter ended Septem-
Der 30 would have been S2,J00.G0O greater than
the published figures. and these profits win de-
velop later when the sale of finished products .
made. including all results from cost price 70
jolt
ton Of the commercial and financial situation Of
the neutrality-suspicious. much Of the vigor-
Gus and voluminous buying of Steel shares.
Preferred Steel at current prices appeals fo-ci-
bly, to investors with its yield Of more than
Per cent-while the activity and strength OF the
common stock indicate belief that earnings.
present and prospective. WILL within a reason
able time. return it 20 the ranks of dividend
payers
There seems to he no doubt that the great
steel industry-basic in character-touched its
low point last spring and summer. and IS now
striding toward development which holds within
it the promise Of a prosperity greater than ever
achieved.
Strength and confidence are also manifested IN
the minor steel companies-proof that the rise IN
the securities Of the United States Steel Cor
poration is not mere manipulation, buJ the result
Of general genuine business Improvement
Aside from political considerations 10 de-
velopment has come 30 the surface involving
even the pretext of distrust The magnificent
display Of strength Incidental to AngIo-T; 1ssian
complications suffered impairment Plain
was the demonstration that whatever might
arise, American securities hold high favor; and
the judgment Of the financial world finds ample
warrant in existing conditions. The enormous
accumulation of American wealth makes this
complications ability 10 carry our ovU burden
being testified 10 in unimpeachabIe fashion
Special conditions arise under which We export
some gold. but neither the cali loan rate nor The
time loan rate is appreciabIy affected. Eight
years ago large majority of brokerage houses
declined TO carry stocks over election day-pdr-
chases OF exchange on London being common as
a precautionary. measure-and it is an opel
secret that the Governing Committee of the
Stock Exchange then issued authority for Tire
closing of the Exchange in the event Of Demo
cratic success To-day no broker objects 20
carrying stocks upon the usual terms. no note OF
alarm is heard in stock Exchange circles.
Under such conditions as prevail IT would be
idle to attempt discussion OF individual prop
erties--the whole market rests upon the as
sumption that the national electorate VIII main
tain the present Administration in power. II
upon Wednesday morning the Nations verdict
is found to be to that effect a thousand pro-
gressive plans will spring to life Many deals
ar pending. involving such interests Erie.
the Gould system. the Hawley system. the At
Iantfc Coast Line system. which are held IN
leash until the last word shall have been spoken
by the people II is not that confidence does not
exist as 10 the political outcome, but the natural
conservatism of capital awaits final certidcsl-
ton Capitalists at the head of our great enter
prises display conmeDdabie prudence in safe
Guarding the interests of Sh9reholders-thCy in
sist on conclusive certainty. And this is in
freshfng contrast TO the speculative management
of years ago.
II may not De sIriss. however. prior 70 cleo
ton. 10 call attention 10 the strong position o.
securities as measured 10y their yield value
responsible bond house publishes a list o. eleven
giIt-edged stocks which after all the recent ad-
vance still show returns running from $50 70
495 per cent and makes the astonishing COM
rnent that thete are many perfectly safe bond
issues which can be purchased 20 yield higher
returns. These figures simply prove that mar
llet value. on the average. does uOt yet approach
Weld value-and The stocks they quote are ex-
ceptiouauy high grade. many reasonably safe
securities being ON sale at prices yielding rev
enue Of per Gent and upward OF course.
notable ease is Preferred Steel, which can De
bought TO Yield over per cent and watch has
proved 10 be perfectly safe dividend payer on
is present basis. These considerations must
tell with force in the investing community
Bond houses are flooded wiki orders. many OF