New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-05-15
The Financial World.

ItC bIuftlLGt w UfLU,
Wall Street in sorrow; dreadful things 81
TO happen; quotations no longer going m a.
guise intrinsic values; something like actaal -
Election of value about 10 be disclosed. So
professional chronicles on the Stock Excban~-
throughout all the week And the net ra.,,H
that nobody worries. nobody sacrifices. noboss
liquidates. In the Steel shares and in hal,
dozen of the railway stocks professional s-o..
was able to force recessiOns under such ejrc,,
stances and of such character as clearly 70
veal the abnormal element; and the fact ~.
ST. Paul and other representative shares al ~
end of the week show some decline actuarv :.
no way testihes to anything else than thu a..
centrated energy of manipulators already ,bo.
of a tremendous line Of stocks and desperat.r.
endeavoring to bring about recessions which WIN
permit them to get even That thew -
make money is away back" in their calcnl,
tons
With but one or two exceptions there has "a
where in the market appeared in any sigairca,,
way indication Of liquidation upon the par :,
those who are real owners of stocks.
There are signs OF approaching chang. !,
speculative sentiment. Speculation Of the wsss
ran chiefly in two industrials-Steel and AM,
gamated Copper-the one declining and IA,
other advancing. breaking the unanimity OF b..,
action. Railroad shares remained dull an,
slightly depressed What might supernciaIIv ).
Judged as bear ammunition plentiful n
GLIDING foreshadowed reduction in the wt,t,.
wheat yield, new issues OF railroad bonds no,,
ton of the Japanese loan and continuing recars
exports of gold. All these are factors which =
has been the fashion to accept as harmful "a
the security market. but values have main.
tanned relative and significant frmness
AS to the bond issues-notably the issue a,
New-York Central and the Japanese Ioan-tbs
important point seems to be the avidity with
which the public takes them; coming. as thev
do, on the heels Of recent railroad fiotations ana
the successful placing OF the New York CITY
loan, their ready absorption strongly testias
that there is plenty OF capital loose for invest
ment-a condition heretofore always precedsut
to revival of speculation.
Twenty years ago the prediction that Nsv
York was destined TO become an interuationa
financial centre. riyaling London. was DISCARDED
as the delusiOn OF dreamers. To-day the iaiilaI
steps toward that contamination are aetuaIy
taken by the joint negotiation in London and
New-York OF Japan's war loan. This accuEuIa-
ton Of American wealth. destined 70 indeanIa
expansion. must eventually shift the sceptsr 0,
financial power to this side Of the Atlantis and
it is no longer fanctful TO prophesy New-York's
supremacy among the Bourses Of the world
Mystery attaches to the weakness in the shares
OF the Steel Corporation. Rumors ara more than
plentiful OF contemplated reduction IN the diyi-
dend on the preferred. but the boldest reader o,
the stars does not venture TO predict less tAaa
4 per cent annual rate. while more cautious
soothsayers name or per cent. There Is 10
official foundation for any OF these prognostes-
tions; but let it be assumed that the worst hap
per-that the rate be radically cut TO per cen,
the present price for the stock would ha-.
thoroughly discounted even this, as IL would
then yield to owners in the neighborhood OF
per cent Then, the stock is cumulative: and IN
the next period OF large earnings there would
be compulsory payment Of arrears From any
rational point Of view preferred Steel has been
driven down 70 an unreasonable level. As 20 the
common stock. it does not seem plausible that
bears are selling II short below 10; II IS safer
hypothesis that the steady outpour o. these
shares is from outside purchasers at nighr
prices wearied with tong waiting But ror every
seller there is a buyer-and this common stsa
Is going somewhere. The fact that its enti7s
issue has shrunk TO market price Of but litia
over S5O.000OOO arouses suggestive thought
This sum IS a bagateIle to the interests which
govern the Corporation. and yet its expenditgss
now carries with II virtual control q the grsass
company in the world
AS TO the steel trade situation there are ho5a
full indications. II Is said that the railroads
have been and are withholding orders for rails
cars. and other equipment, In the endeavor to
force down prices-a trade authority stating that
two Eastern roads alone are short $4,000 cars
and this is illustrative Of conditions all over ths
country. Apparently steel manufacturers are
determined and able to maintain prices-such
being the fact. the railroads will ultimately %
compelled TO purchase supplies. Demand for
structural steel also is good and augmented By
the approaching rebuilding OF Baltimore. In
steel trade has probably touched its low point
for long time. and as, TO quote Mr.. Carnegie, .
is always either prince or paUper, it IS not ez-
travagant to expect rapid recuperatiou- All
which. If realized, will inure richly TO the bensf
of purchasers of Steel securities at current quo
tations.
Incidentally the nadir of foolishness -
reached in fashionable talk about the "sar-
fee" OF Charles NJ. Schwab Those who but a
little while ago were exaIting his strength and
his genius. beseechingly seeking a chance 10 lcs
his official shoes. are now bewailins his d.
struction. Such stuff nauseates. Sch~ab is 10
day the same man he always has been.
Amalgamated Copper IS rejecting tavoraa
copper trade conditions. Doubtless the specuia-
tion in it's shares has been helped b. more G
less credible reports of approaching harTpoDiees
settlement between the interests so bas
engaged in bitter strife-but whether such ~
ports be true or not the fact remains thai W
copper business Is healthily developing, and "
course the AmalgaInated Companv must sna-s