New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-05-08
The Financial World.

attracttveness sufhclent 10 induce outside IN
terest. This condition is at the moment. how
ever. only a trihe more acute than has bee,
the rule for months past.
And contributing TO this situation is the ac,.
uaIy alert disposition of commission broksr,
to discourage customers who might be incljnas
to trade. The junior partner of an importan,
Stock Exchange house made this statsmsn,
yesterday: zone OF our richest elients-wbo
used TO trade in thousands Of shares per dav-
called two or three days ago to tell us OF wha.
he had seen and experienced in a Western tr,n
just ended. He full OF enthusiasm M
where had he met anything but prosperity. tn
any man familiar with conditions througbou
the country. he insisted. current Wall Stree,
lethargy and pessmism were simply incorn-
prehensible. Stopping for a moment in N,
enthusiastic conversation, he said he wanted IN
buy one hundred shares of stock. But he ala
not get any further. Our senior member IN
terrupted him and said, without even waiting
to hear the name OF the stock:
Perhaps you are right-perhaps II would be-
a good thing to buy something-but why dom,
you wait till after election"
Into this incident is compressed the quintss-
sence of current Wall Street views and counsel
Commission brokers' are amiably dividing their
time between grumbIing over poor business and
warning customers against attempting to mako
business better.
1t was suggested IN this column a week az,
that the subscription for the latest issue q,
New York City bonds would furnish a test ar
Sign as TO the disposition Of capital The bids
submitted were overwhelming evidence OF vigor-
Gus buying power. The issue Of S3TO00Os0
was more than seven times overbfd for. and ar
prices materially better than paid for preced-
ing issues. Here at least were some S250OO0O00
seeking investment OF course New York CITY
bond Is a gilt-edged security. possessed Of the
element Of safety to degree only surpassed
perhaps by bonds Of the National Government
but the fact stands out that money is not being
boarded that surplus wealth exists in vast
voume-probably vaster than ever before-and
Is seeking outlet. And the Stock Exchang,
transactions particularly OF Iate-onIy partially
record what IS going on During the week a
number OF important bond houses have been
quoted to the effect that the bond business Is
steadily improving. There is indeed lack o.
frst-class bonds on the market, issue after issue
having been gradually absorbed by investors
and retired from circulation. Demand is now
growing for second. third and fourth class bonds
which have the promise in them Of taking higher
rank IN the future. In general there ia
absolutely no new feature OF disbursement
nothing TO disturb alarm, nothing 20 causs
even werriment. IN the vital matter Of the crops
we. are now blessed with IDEAL weather condt-
tons for fostering and nurturing growth-and
this happy weather change comes Just at thu
right time. The Government crop report which
will appear next Tuesday. will not fairly analyzs
existing conditions, as It will be made I'D on
statistics gathered prior to May T. while slncs
then enormous Improvement has appeared.
IL has been a historic week I'm the money
market The financing OF the New York CITY
loan and OF the Panama Canal payments in
wolves the shifting Of enormous sums. Yet 40
far actual cash holdings are concerned the
bank statement shows decrease Of only $1,000
coo. and the specie and legal tenders held stiu
stand over S3Oo.O0o.oo0. against about S24O-
100000 a year ago. Loans naturally increase
largely, almost all the amount. however show
ing up IN deposits. thus drawing upon the sur
plus; but the surplus. after declining over s1O-
100000. stin remains almost twice as large as
year ago. There Is nothing in this situation TO
take alarm at. but there is ample and con-
vincing evidence OF the ability OF the New York
banks-and indeed Of the country-to handle the
most gigantic transactions with smooth ease
But pessimism IS stubborn element; the
habit Of distilIing disaster from any and all
events has grown 20 be second nature with
many Wall Street men. They approach all dts
cussion IN 1aundiced frame of mind; they seek
with tireless diligence for unhappiness. and
when they cannot find II they manufacture Il.
Then. so to speak. they have the floor" and
hold II with loud-lunged vigor. No wonder that
the speculative spirit Of the country has been
put 20 sleep. for Wall Street has done every
thing within its power to discourage and deter.
But this strained and artificial situation cannot
last. From every productive section Of our
country sounds the voice of hope. Production
and commerce keep up their giant strides Our
hold on international trade is firmly maintained.
Our exports OF manufactures alone are. bringing
US approximately $3.50 100000 a year more than
they ana ten years ago-then they rarely ex-
ceeded S15OOO0 OO0-nOw they exceed $4O0000-
COO and this imperial growth continues
In the market OF the week exceptional interest
attached to a movement IN METROPOLITAN Street
Railway securities. In this review week ago
II was stated tersely that there exists in Metro
politan short interest which has largely Cor
its basis the factor OF personal malevuIence. No
reason develops for 4 change in this statement
For long time past Metropolitan has been the
target OF Stock Exchange bears, for the rea~
son chiefly that there are recognized enemies
OF the property watchful continually for oppOr-
tunities to do it damage Grounds for such be-
lief have been even paraded. Three or four
or five years ago there was attempted a sensa-
tional coup by which it was plotted to entrap
an important commission broker and so destroy
group of Philadelphia investors in Metropolis
tan-the plan falling only for the reason that j.
p. Morgan and Thomas F. Ryan interviewed
With offers OF credit beyond the cut-throar
levies Ever since that time il has been a bear
Wall Street theory that an important Metro
pOItan account IN Philadelphia is weakly held