New-York tribune., 1905-08-14
THE WEEK IN WALL STREET.

appearance of which was followed by a spec
tacular advance in certain gilt edged" stocks
and broadening of the trading In the general
list 1t may be. many say that the marking
up. on insignificant transactions. OF Lacka-
wanna, of which there is practically no floating
supply. and the advancing of such other tena-
ciously held stocks as Delaware and Hudson.
has had for its object the arousing OF speculative
interest among the general public; yet, in the
past efforts TO bring the public into the market
have many a time been made. which have had
no such justification as the present situation
presents. The strength Of that position lies in
the fact of bounteous harvests virtually assured
and business prosperity general throughout the
land. with confidence in its continuance strong;
the weakness in the fact that securities are un-
questionably high and the likelihood that within
a few weeks serious contraction may occur IN
the money market. in which extreme ease has so
long prevailed.
The winter wheat crop is now beyond danger,
and spring wheat will soon be past the point
where black rust corrupt and rains destroy.
The total estimate wheat. based upon the
governments figures. is 700. 731 900 bushels, fig
ures exceeded by those of final harvest returns
in only one year. 1901. The estimate on corn.
2.69S, ,116,OOO bushels promises. If all continues
to go we'll a bumper crop. as it is more than
vest made in 1899. These vast prospective re-
turns from the tilling of the soil mean prosper
fly for the farmers. a heavy traffic for the rail-
roads and increased business for manufacturers
and merchants. The farmers are longer bur-
dened by mortgages, and out of their profits may
be expected to purchase in the aggregate very
large amount of articles both for use in their
work and for the needs and the recreations Of
themselves and their families the transporta-
ton Of which commodities will make a consid-
eratle addition TO the westbound traffic of the
railroads. In their turn the railroads. now that
the making of tremendous crops this year seems
a practical certainty, putting in liberal or
ders for steel rails and for cars and other equip
ment, which means additional business for steel
manufacturing companies and makers of rail-
way supplies. And so the vtvifying current runs
from the soil. benefting every line of business
and of industry.
A decided revival is reported in the iron and
steel trade which continues to be the industry
most closely scrutfnized by those interested in
the study of business conditions and the bust
ness outlook. The make of pig iron in July was
less than for several months preceding despite
which stocks of the merchant furnaces in
creased. But the addition TO stocks was smaller
than In June, and the consumption of iron made
by merchant furnaces increased in July over the
preceding month, while large sales for future
delivery are reported. Very large orders are
reported for all lines of finished product Among
the evidences Of business prosperity are the fire.
qUent announcements of increase of dividends
Of the declaration of initial dividends on rail-
road shares, the latest instance being that Of
the Central of Georgia, which has increased the
dividend on its second common bonds from ? to
the full Per cent. and has declared a per cent
dividend the third incomes, on which moth
ing has heretofore been paid. These dividends
are payable only If earned. Another indication
Of the soundness of conditions is the fact that
the business failures in July We're smaller than
in any preceding month of this year. and the
smallest in any July for twelve years.
Prices are high. The average price of twenty
active railroad stocks toward the end of the
week reached a level about that of September
@ 1902. the high record for many years. In
this list of stocks Lackawanna which in
little over six months has advanced from 325
20 40. does not figure; but Delaware and Hud-
son does and so Go others Of the prospering
coaler group like Reading. with its new high
record last week Of 10. and the recently un-
honored Erie common, now up to AIS. These
gains 90 far toward making the record new
average total for against them must be figured
declines from the high level Of 1902 such as
Z -
vania and about % points in Chicago and
Northwestern. The securities of many roads
/ besides those three are selling lower than they
sold in 1902. when conditions were far from
being sound they now. If good
/ many new high records are being established.
with here and there q phenomenal one as in
Lackawanna, the fact need not necessarily be
taken TO indicate unsafe situation Sue
cessive years of satisfactory crop yields, re-
covery of business from the depression of a
year or two ago and the steady growth of the
nation in population and wealth-more than
"A million immigrants entered the ports of the
United States in the year ended June 80 last
and race suicide has not yet come to be the
chief menace of the Republic-these considera-
tions all make for maintenance and for inn
provement of the business and the earnings of
the transportation companies and the Industrial
corporations. The trusts being tried out.
and some of them, to nobody's surprise have
been obliged of late to cut or pass dividends;
but the conservatively conducted industraIs
are having and must continue to enjoy a full
measure Of the activity and profit of the present
period of national plenty.
What the near future may develop in the
way of arresting reversing the present trend
Of values in the stock market is not easy Ia
forecast with certainty Some shrewd observers
declare that money will continue to rule easy
in the fall. The majority of those best quail
fed to make an accurate Judgment how
ever, from their position as men OF large af-
fairs expect a rather stringent money market
before long the natural relief for which is the
calling of loans. which, in turn, operates 10
compel the closing out OF securities and theil
consequent decline in price. With the surplus
reserve standing to-day at less than $4,000. 900
/