New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-15
The Financial World.

terest-squeeze campaign was about over And
this squares with views that sensible business
observers have held right along. Extraordinary
commercial, financial and agricultural expan-
sion throughout the country has required
naturally enough. largely extended monetary
accommodations; and in some quarters this de-
mand may have imposed excessive stress: but IN
so far as the country's money market, as a
whole was involved. there has at no time been
any substantial reason for anxiety or nervous
ness. any especial concern whatsoever That
there should be hubbub over a money market
rate approximatng only the legal rata is hub
bub ridiculous. depressed money market re-
fleets but lethargy. Advancing rates-advane-
ing to normal quality-can be fairly construed
as indicative only Of healthfu1ness. It IS there
fore, not occasion for perturbation at aIl-it Is
occasion for more aggressive conference.-the
the business interests Of the country find them.
selves able to compete one with the other for
the use OF funds find themselves able to use
money advantageously, find It Immediately
profitable to be active as merchants and manu-
facturers. Sitting stu. doing nothing. with
money at per cent. Is hardly the ideal Amer
lean position; alert, hustling and aggressive
with money at 4 and and even per cent.
with profit yield over and away larger. f. 2
happier situation. No open minded observer IA
disconnected by comparison Of present and past
Touching the financial situation We have had
during the week two discussions exceptionally
notable Mr.. Vanderlip. vice-president Of thu
National City Bank. at q public meeting IN
Washington, reciting in some detail and with
much enthusiasm the wonderful expansion Of
American prosperity. deemed 1t wlse-naturafly
enough-to vouchsafe the suggestion that there
| never was a season when danger was not
! dangerous. when taking risks was not risky.
| when transportation was not to be dspIored.
| Having audience, the temptation 10 always
to serulonize; and Mr.. VanderliD was well With
! in the bound of prudential rhetoric in extoIling
/ the virtues Of OBSERVATION-DISCLOSURES that
there may not yet have arrived that ideal day
wherein banking shall be but poesy and bankers
run risk National prosperity's sweep OF
swift advance he emphasized exceedfngIy-sug-
costing merely that it Is doubtful II there can be
cafe security market progress from such high
! levels" as are recorded
| With rush and hurrah. speculative Wall Street
| sold stocks forthwith-sold them slort-so sold
| them to find since that II is easier to sell than
| to recover such sales. for We have extended
| resultant short interest that IS unwieIdy. Yet
| on the actual basis Of fact, what Frank A. Van
derlip cautiously said bears every test Of good
business sense The list Is long Of stocks which
! are at high leVels'-stocks whose yields are not
| equal to the current worth Of investment money.
| But what the YanderIp dictum ignored has TO
do with the longer list Of stocks whose intrinsic
| values are not reflected in market quotations.
| long list whose prices are less from 10 to IS
points less than figures hitherto attained. ANY
fair familiarity with the market reveals this LIST
More important than Mr.. Vanderlips express
sion. though not so appealing to the hystsrical
sense Of speculative Wall Street. was an address
to practical railway managers by Samuel
Spencer. president Of the Southern Railway, dis
cussing proclaimed political proposals OF gov
ernmental confscation. Dealing in facts, Nj.
Spencers discussion was without sensational
feature; his argument had to Do only-exciu-
stvely-with basic, elemental, issues. Upon The
| ground OF integrity-the square deai-hs pointed
| out with effective clearness what may and may
not be fair. what may be straightforward. what
confiscatory; what may cater 70 socislistio grab
games what may be rational For essential
! quality it was an address which sane men OF
affairs cannot afford to miss-plain, straight
| forward, national honesty cleaning through f.
We are told explosively that Congress this
winter will do a lot Of dreadful things to the
railroads; but we prefer the belief that no action
can ignore the logic. the fairness. the sense Of
what Samuel Spencer in open minded argument
elucidates
| It is certain deduction that security market
movement must follow and reflect antecedent
| conditions. We are just completing a crop year
OF unrivalled production. and for our agricult-
ural products there is demand which maintains
| high prices. Illustrative and informing is the
| increase recorded in the value OF Western farm
| ing lands Since 1900 these lands have increased
| in value more than fifty per cent, the total In
| crease in 1905 approximating S5OO0OooOoO.
| This vast addition to the wealth OF the agri-
cultural community has come about quietly and
| without any speculative feature-just the plain
simple growth Of actual productive value. Ana
side by side with this agricultural expansion ap-
pears tremendous growth in the manufacturing
capacity of the West and South These agrt-
cultural communities are developing manu-
features to marvellous extent. An annual prod
uct exceeding S2OoOOOOOO already shows in
what are known as the prairie States. while IN
the South the single State Of Texas assumes
commercial proportions scarcely believable.
This enormous Western and Southern develop
ment provides the basis upon which the striet-
ure of prosperity arises. 1t is actual not to ne
gainsaid not to be dissipated by the windy ora
tory Of professional bears. The statistics fur
nished by the United States government ana by
other authorities cannot be questioned
More active use OF money. involving higher
interest rates is looked upon in certain quarters
az a bear factor. The contention is delusve
It would be impossible in the grand march OF
current events that money should remain drus
at Q or 8 per cent. The moment confidence Is
re-established money seeks active employment
and its Ioanable value improves. There mas
never been any question about the existenes o.
ample funds for any desirable purpose and 'h'
Improvement in the money rates now seen sii1'
ply testifes to appreciation OF conditions
Following midweek Observation-Disclosures