New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-07
The Financial World.

Throughout most Of this week the security
market has been kept under severe pressure
there being continuance OF the campaign OF IN
situation and innuendo, Of sensational misrep-
resentatlon and fool fables. Important names
individual and corporation alike-have been as
sailed. And industrously peddled hints nave
had 1t that there trouble here there ana
everywhere-no stability or integrity anywhere
and under the stress of all this it would not be
strange to have TO record that current market
quotations suffer a good deal They do not After
all the ramming jamming. damning processes OF
the week market values in very large majority
actually showed advances The semt-panic condl-
lions precipitated in the ferment Of desperate
bear manipulation week ago have for sequei
market conditions sturder than ever
And what fair Observer-scanning however
closely the business situation OF the United
States in any geographical quarter. in every de-
partment-can find warrant for aught else than
approval Of this verdict that market quotations
give? Where is there commercial or financial
disturbance or difficulty recession whatso-
ever? Where aught else than prosperity?
A week ago Observation-Disclosures panic
ruled; the air thick with rumors of impending
disaster all of which proved to be the stuff that
dreams are made of; now, apprehension allayed,
confidence restored. Yet " lat actual difference
exists between conditions week ago and con-
ditions to-day? There is none discoverable.
vast number of speculative transactions have
resultant profits losses but there is no change
calling for comment in a single railroad or in
dustriaI company-unless, indeed may be noted
the authority granted to Union Pacific by stock
holders to issue 500 100000 new preferred stock
and this simple formal ratification of a ma
tured plan-without scintilla of all the
StIU he'd
anybody.
Consideration of fundamental conditions COM
pels conviction of soundness. Comparison
shows the weight of bull argument and how
limsy is bear contention. Against the mag
nificent certainty of the winter wheat crop,
wailing is heard over settled speculative losses
in that cereal; opposed to unexampled indus
trial development is personal attack upon in
dustrial magnates; railroad earnings
emplifed by Union Pacifcs net increase ap-
preaching 100000 for the first nine months Of
the fiscal year thought to be offset by local
insurance company disagreement. How utterly
puerile is such reasoning. Good crops. flourish
ing industries imposing railroad earnings. are
factors which endure-Equitable troubles, bank
defalcations, collapsed wheat corners are pass
ing temporary influences.
Every day piles up proof upon proof Of normal
National growth-nothing in the nature OF
boom-no hurrah performance-Just the simple
record Of orderly progression Every available
test warrants confidence. Prices Of conmod-
tiles relieved of manipulative effort remain at
levels bringing added and added wealth TO the
agricultural community. The steel business Is
thus pithiy summed up by that ultra-conserva-
tive authority. The Iron Age Consumption OF
iron and steel continues at an unprecedented
rate Reports from manufacturers in every
branch show that the trade is at high pressure"
And this consumptive demand is of natural
legitimate growth the direct result of prosperity
accumulation. The money market eontradicts
bear prophecy and confirms conservative bank
ing opinion, previously quoted in this review
the call loan rate lowering around per cent
and occasionally breaking below-tine money
correspondingly easy
Against these plain, simple deductions. what
does the bear party PRESENT. Nothing but gristy
phantoms beckoned from the vastly dee2-slan-
derous attacks upon character, vicious hints and
innuendoes against financiers and institutions,
professed disbelief in the honesty of all statistics
doleful dribbIings about the Equitable There is
a singular side to Wall Street. A noisy host
cannot apparently conceive the mighty growth
of the United States-they trade on the tradi-
tons Of a past generation when this country
was debtor Nation and when it's manufactures
were in their infancy; when prosperity depended
entirely upon our ability to sell agricultural
products abroad. All this is changed-our i'm
ports Of manufactures are comparatively
inconsiderable while exports grow amazing
lyon international balance are creditors
and this coincident with growth of population
and productive capacity for which history af-
fords no parallel.
American securities must reflect American
conditions. Market values can be temporarily
depressed by manipulation; they can remain
down only through absolute revolution Of
matchless existing conditions
An American pessimist is a paradox.