The sun. [volume] (New York [N.Y.]) 1833-1916, 1904-09-11
FINANCIAL AND COMMERCIAL.
SATURDAY, tSept. 10.

did not In any wise lessen their contro
to-day. They opened the market irregu.
larly but firmly, the United States Stee
stocks being the leaders in point Of strength
and activity in the early trading, with
these, in turn. followed by vigorous up
ward movements in Pennsylvania, Southern
Railway, Pacific Mail, Consolida ted Gas
and American Locomotive common. The
rise in the last named was based logically
enough upon the good showing made by
the Locomotive company in it's annual
report, although there is little doubt that
dividends upon the company's common
stock are as yet afar of. The recent buying
OF Consolidated Gas is believed to rest upon
much more substantial hopes of an increased
dividend distribution, and the upward trend
OF the Steel shares indicates that it is the
hope OF some at least OF the people con-
versant with the iron and steel business
that better times are in store for this bust
ness in the near future, confidence being
expressed that the cuts made in the prices Of
steel products will insure larger orders
from consumers. On this point, it must
be observed, there is wide difference Of
opinion, the chief reason for lack Of trust in
such gratifying developments on the part
rarely in the history of the iron and steel
business have purchases of the finished
products of the trade increased on declin-
ing market The hitherto invariable ton
dency of consumers has been, in other
words, to delay their orders until they Were
satisfied that bottom prices were reached.
There was little comment heard to-day upon
the proposed plan of reorganization of the
capitalization Of the Consolidated, Ameri-
ran and Continental Tobacco companies
in accord with the terms published this
morning. The assertion, however. that
the plan involves a large cutting down
OF the existing capitalization of the COM
panies is manifesty untrue. A reduction
of the nominal capitalization is indeed
suggested, but it is to be attained only
by cancelling the stock held in the various
company treasures. After the publication
of the weekly bank statement, showing
rs the result of only five days business
loss in cash of nearly So 100000 a loss
10 the bank surplus of 80 1000, OOl, making a
net reduction in this item in two weeks
OF nearly S2o,OOO,00O with bank loans
pushed by an increase of sl3 100000
to new high record figure, the up
bidding Of prices was conducted more
vigorously than ever St Paul, Atchison
and the Western railroad stocks that have
lately been laggards We're advanced, and
In the last half hour of business that re-
manned the largest gains in prices were
made. In certain securities that have
lately been very active there was. how
ever. plain evidence of liquidation. How
Wall Street would have regarded the
figures Of the monthly Government crop
report which Were made public late in tie
afternoon must in view of the vagaries
which have recently marked the course of
prices, remain a matter Of conjecture.
The official condition of corn as estimated
was s4.6, a decrease OF nearly points
since August, and indicating crop of
? ,48l ,s03 600 bushels of the staple. The
figures issued in August
the yield of winter wheat stand,
OF course, as final for that crop, but the
condition Of spring wheat as to-day stated
was put at 86.2, showing perpendicular
drop almost unprecedented in the histo ry
OF the grain trade from the July condi-
ton Of 93.7 and the August condition Of
B7.6. Our estimated total wheat crop,
therefore, is less than $4,000, 900 bushels,
the smallest crop produced in our country
for many years. Various private crop
experts maintain, as is well known, that
even these figures for wheat and corn as
given are much too high.
The phenomena which the stock market
has presented, especially IN the last week,
seem to many observers to be character
lstic OF the closing rather than the prelim-
mary stages of a period Of active specula-
ton for the rise. The large volume Of
the stir and fever among the
daily habitues of Wall Street, the avidity
with which news making for higher prices
Ia received, the utter unwilingness Of
the great majority of spectators to pay
my attention whatever to Developments
suggesting conservatism or caution, and
The frequent uprushes in the price of this
or that security for no known or lima gined
whatever, the movement often
in ordinarily inactive and COM
valueless shares-all are familiar
spectacles and usually are accorded but |
,ne place in the history of bull market. |
There Is no known practical method of |
stating how long such state OF affairs |
nay be continued. But the time always |
ZONES finally when the cool headed buyers |
n the market Of weeks or months before
,egin to draw a balance between the cur
ng and the investment value of these stocks,
md having large profit on their venture
which they do not desire to lose they are
more inclined than late corners in the
took market to consider the actual state
II business in the country and the pro-
liability Of occurrences which may con-
ront the market adversely at a time not
'ery far removed. AS an insta nee of the
present general position of things reference
. not inopportune to one stock, Union
Pacific common, which has lately been one
II the most active, il not the most active
took, in the speculation for the advance
The price OF this stock is now such that
ts yield as an investment is less than 4
yer centum per annum, yield lower than
hat OF many gat-edged bonds, recalling
'ividly the boom days in the stock market
II two years ago Obviously. this price
. only to be justified by contest for
'ontrol' Of the property or by the estab-
ishment soon Of higher dividend rate
or the shares. The first suppositon is,
II course. absurd; the second hardly less
%. Union Pacific will perhaps receive at
ONE time in the next twelyemonth a small