The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-22

some weeks ago in this column to indica.
tons that production OF pig iron had been
stimulated to such an extent that 1t was
doubtful whether current consumption
could wholly take care OF the output, and
these indications have become stronger
The wise necessity Of the moment seems
to be in WaIl Street not to regard such
indicia o. possessing any more signif-
cameo than properly belongs to them.
OF course, spectators for the fall-and
commitments Of that kind are beyond any
manner OF doubt greater in the United
States Steel stocks than they are anywhere
else in the market would like to have the
public gain lugubrious idea Of the state
Of affairs, that the iron and steel business
is now going rapidly to smash, that the
-pauper" period Of the trade Ia just dawning,
and so forth. Now, as frankly as 1t was
here stated a month ago that signs OF q
halt in the trade were visible, II must be
pointed out that pessimism regarding this
matter il being horribly overdone. The
iron business is not in bad way and is not
likely to be for time ahead further than
any man can now discover. All that has hap
pened Is that it has halted, doubtless tenn
porarily, just as it has done every year at
this time for the last five years. Can it be
supposed that the United States Steel Cor
poration is to keep as per cent. OF it's theo-
retical blast furnace capacity in operation
continually? The wisest and most farseeing
people in this trade, those who are familiar
with the way Wall Street looks at matters,
as they are with the affairs of the steel and
iron world itself. did sell some Of their
Steel stocks some time ago, considering
it likely that matters would come to pass
in the stock market exactly as they have
done. While it ia unfortunate that names
cannot be mentioned, it may be said that
these men do not look for anything even
resembling what can be called trade
depression. What they are doing in the
stock market therefore, while Wall Street
is so bearish may perhaps be guessed at
by quick witted people. So far as the
situation is affected by the Presidents
determination to buy some Panama Canal
supplies abroad il he can get them cheaper
than he can buy them at home, or to ask
Congress to express its mind as to the
propriety of such a course, 1t seems that
an entirely overstrained view has been
taken by Wall Street; or what is the truth
about the matter, Of course, is that this
more than it is worth by spectators for
the decline. The theory is 1t is said, that
all this may lead to an agitation for revision
of the tariff There is only the smallest
amount of proof that the people Of this coun-
try desire the execution of any tariff re-
vision program and no real probability that
any such scheme will be pushed either at the
extra session of Congress or the regular
session in the winter.
Aside from the ever present stimulus OF
the cheapness of money, to which allusion
has been made, there are other favorable
elements in the situation which cannot fail
in due time to be regarded. The Financial
Chronicles figures, published on Saturday,
showed another great enlargement Of rail-
way earnings during the month Of March.
The crop prospect is practically as splendid
as ever. The Government April foreign
trade statement showed that exports of
agricultural products az well as Of manu-
featured articles are once more beginning
to boom. And it will probably be found that
the lull in the iron and steel business has
served the beneficial purpose of stopping
a crazy buying movement. There was
some disappointment in speculate We cir
cles following the meeting Of the North
ern Pacific stockholders last week, due
almost wholly it seems. to the fact that
no deals" OF any sort were announced
at the meeting. But the results Of the
meeting were received by the thinking por-
ton of Wall Street with exceeding pleas
ure, inasmuch as they attested the personal
presence on the new board Of the COM
pany's directors of the largest stockhold-
ing interests in the company. II there
are any railroad wars in the Northwest
about to be inaugurated and the Northern
Pacific Railway Company Is expected to
bear a share in them it Is in great part
their own money rather than that OF other
people that the directors OF the Northern
Pacific Company will expend, which Ia the
best possible reason for believing that no
such wars will be seen. One of the strong
est features of the stock market in the week
was Amalgamated Copper. Close observers
Of the market have noticed for long time
past a steady accumulation Of the Copper
shares, and there is little doubt that this has
buying of the stock by those
who know things, not only about Amalga-
mated Copper but about the copper trade.
At its present steadily maintained price
there is a great profit in the production of the
metal, and there is every reason to believe
hat copper will sell little il any below ruling
figures in the course Of the present year. Ono
reason for this is the enormous purchases
Of the metal by China. for causes that are |
not yet generally understood in the fnan-
,ial community but which, it may be said,
ire of such nature that they will continue |
Is an important factor in the trade for q |
ong while to come; another is the small |
.eserve stocks in the hands Of domestic |
who have, as they often have
n the past, underestmated the strength |
If the producers position. The net result
If this so far as the Amalgamated oom-
,any is concerned is that it has wiped out
he company's floating debt and brought up
or acute discussion among the directors
he ACCESSIBILITY of advancing the company's
dividend rate.
FINANCIAL AND COMMERCIAL.