The sun. [volume] (New York [N.Y.]) 1833-1916, 1904-10-16
FINANCIAL AND COMMERCIAL.
SATURDAY, Oct. Is.

here, t6ls morning prices for our securities
In the London market were at greater adj
vancesl over yesterday afternoons closing
quotations here than they have been at
any time upon q similar occasion since
the current upward movement In prices
began. On the London curb market, after
the oloee Of regular business on the London
exchaARe, there was still large buying OF
American stocks, and cables here described
tho enthusiasm felt for American securities
as rampant. All trustworthy advices are.
indeed, that the hopeful feeling in London,
~ we'll as In Continental markets regard
ing oF stocks, is greater than 1t has
been at any time for years, and all proba-
bihheB are that unless some unexpecte
disaster intervenes our market will have
the help OF European buying on fairly
large SCALE for considerable time to come.
Stock Exchange transactions here to-day
rose to one of the largest totals ever re-
corded for half days business, and the
market throughout it's short session was
plainly governed by great, even II strictly
profesmonal momentum. Such extreme
advances at one time were made as points
in Louisville and Nashville, nearly points
in Southern Pacific, and Of points or
slightly less in number of issues. The
traction stocks, notably Brooklyn Rapid
Transit were somewhat quieter than
they were yesterday and the day before
and, although they showed the effects Of
liquidation. managed to hold their recent
advances Similarly. the coal railroad
stocks were less active than were other
quarters of the list. although here, too,
nothing like weakness was shown. Ex-
ot,<nyo Of oyfr alv n hla hank
statement were not realized and the state
ment itself, probably as the result of the
working of the average system, was hard
to understand There was an increase in
reported cash holdings of barely more than
$500, 600 although it would seem to be an
established fact that the banks did gain in
cash during the week nearly s0Ooo,O0O.
On the, other hand, while there is no doubt,
OF coluse, that by reason of the enlarge
men, f market values there was a heavy
increase in Wall Streets borrowings during
the week, decrease in bank loans was
reported Of sll $4,000 This latter exhibit
may be satisfactorily explained, it is true,
by the entrance into the money market OF
trust-companies as lenders the invisible
credit" resources Of the financial commu-
nity, in other words, relieving the banks
Vi LILO Duu'itl III llc cAfdiisioh Vi iOoio
that has undoubtedly occurred. Little
attention at best, however, was paid to the
bank return
The careful observer scanning the Sc
curity list, noticing the advance In prices
that has been made since last July, and re-
hecting upon general and particular busi-
ness Conditions, can very frankly make
the statement that In certain stocks, at
- = Al. l. L-1 L1A
fully justified. Our great railroad lines,
especially those travereing the Southern
and Western portions OF the country, have
in tHar favor the large crops sold at high
prices which cannot fail to be the means
Of distributing wealth among the people
engaged in agricultural occupations. All
discussion regarding the stocks Of the iron
and steel producing companies centres
arouAA the securities Of the United States
Steel Corporation, and from Wall Street
point Of view the question here settles down
10 one point, namely, whether che proba-
bilitss are that United States Steel pre-
ferred stock can continue to earn and pay
its regular dividend. The indications OF
the .Moment are overwhelming that this
dividend rate can be maintained. Up to
tho present time, that Is, throughout a
per16d Of eighteen months depression in
the iron and steel trade. the Steel Corpo-
ration has only had to take out Of its accum-
ulateA surplus about se,Ooo,ooo in order to
make this dividend deficiency, and now
thai Improved business In the trade seems
at hsnd 1t appears reasonably clear that
ourrant earnings will amply take care
OF these dividend requirements for an in
definite future time Therefore, 1t may well
be argued that United Sta tes Steel stock
at Its present price Is still not too high.
Similarly, Consolidated Gas. Delaware
and Hudson, Atlantic Coast Line, Louis
vile and Nashville, Delaware and Lacka-
wanna, and many other stocks are earning
such sums Of money that an increased dis
tribution Of profits in some way to their
stockholders cannot long be postponed,
and their prices should logically have en-
ioyed-a material advance, that Ia, from the
level of six or even four months ago. But
all these sound reasons for an advance in
certain stocks are not sufficient basis for
heller skelter speculation generally. Ex-
perience in the stock market, il it teaches
anything at all, teaches that the outsider
should beware Of making purchases Of
securities after long advance in prices,
eliminating in veritable boom, has &C.
Cured. Regarding the railroad properties
of thecountry as whole, it must be remem-
bered that bright as is the prospect for this
seasons business, based principally upon
the country's splendid harvest yields, pres
emit circumstances are such that almost all
Of the money that will be paid out to the
producers Of these crops will come from
domestic consumers alone; and that il this
tendency continues, and some of our
thoueAtful business men and economists
believe that it will not only continue, but
willIDecome intensified, the process will
entail such a REIMBURSEMENT Of social and
busNAss conditions as will probably at some
tinH-Dr other leave an unpleasant mark
upon 4ecurity prices. In the case OF rail-
wa$s,Moo, the reports Of almost every one
Of these companies for the last fiscal year
as they are now made public show large
incReeee in operating expenses due In chief
measure to an increase in the cost of labor.
Thssg,wage scales cannot speedily be re-
duchaif, indeed in the ma jority of instances
they can be reduced at all. They form a
sewers additional burden under which the
railru6d companies must permanently labor.
Moreover, railway expenses for mainte-