New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-07-24
The Financial World.

Many differing views have been exprass.a -
the endeavor to explain current recuperat,o, a,
the security market. From the bear earn a,
heard the accusation of nanipuIat icr,---r~o,,,
nent operators and great houses credited Wit,
marking up" this and that property, as II suc,
performance were the normal and easy metro.
of transacting financial business. With Javn.v
indifference to underlying conditions. II ia IA.
sumed that value is merely the sport OF specu-
lation and that our railroads ard Industrial ar,
-terprises are destitute OF merit. Market critic.
with vision bounded by the narrow confines a,
Wall Street fail TO perceive the national charac.
ter of this movement. and the forceful assert,ve
ness of 1T; but facts are importunate intruders-
and back OF current betterment Is the telling In
fluence of business facts.
Buying began TO broaden some time ego In
the bond market. Both on and off the EXCHANGE
persistent purchases of high grade bonds havs
virtually drained the market OF that class OF
securities with second and third class mort
cages in active demand. also those
preferred stocks of standard properties which
are akin to and good as bonds. Investigation
reveals that very large proportion OF infu-
entail buying comes from the West. where con-
ditions have radically changed In recent years
The West has enjoyed series of good crops
only interrupted by the partial failure of the
of means. and are no longer chronic borrowers
Of money Seven or eight years ago surplus
Western wealth accumulated az such centres "a
Chicago and 81. Louis. found profitable employ
ment in loans real estate-particulary on
farms. Farmers were so poor that rates OF
interest gave lenders vast profits for only
could the Western capitalist loan out his own
funds. but IN addition money borrowed In the
East had anxious applicants for It, and profit
able differences went thus also to the Western
bankers profit These conditions have passed
away. Western wealth has accumulated un-
precedentedIy. and. quite after the fashion Of
all wealth. seeks profitable employment. The
agricultural community a borrowing basis
has no use for it. having got it's own feet,
nc longer obliged 10 pray for favors. And one
result is that now the Western capitalist is
practically forced TO seek the New-york secur-
ity market for satisfactory yield for his money
hence the steady stream OF investment orders
executed by Western houses evidenced by daily
market reports naming buyers and sellers.
This Is factor which escapes the notice OF
the average trader or speeulator; but it is
great, strong fact. standing out clearly 20 those
who make serious study of the causes of market
movement. The relative diminishing Importance
or the East 20 the West and South financially Is
working a radical change in security market
conditions and influences: and with the assured
crops for this year the trend must become even
more sharply accented. This explains in large
measure the steady contraction of what is tech
nically termed the floating supply OF stocks.
Securities are being actually carried away from
Wall Street to become the income yielding prop
erty Of Western and Southern owners.
Continuance OF this movement will minify the
power heretofore exerted by professional specu-
latiye short selling.