New-York tribune., 1905-04-24
TFF WEEK TN WAL sTREET.


about 3 per cent. with the heaviest losses in
Nev-York Central. ST. Paul. Southern Pacific
Union Pacific American Smelling, Amalga-
mated Copper, American Sugar Refining ana
Tennessee Coal and Iron. Whether or not THIS
decline has been sufficient TO place the market
in a position where the upward movement may
10 resumed AZ once win be reflected in the
trend Of prices in the current week barring
OF course developments Of an adverse nature
eefectino the actual worth Of stocks and bonds.
In the event OF which there would be littla pros
nect Of success on the bull side OF speculation
Al the moment there is nothing in the situation
that suggests the possibility OF the develop
roent of unfavorable factors in the position OF
business and money IN the United States' anu
It is. therefore, safe 10 believe that as iaF %
,v+rirsc worth is concerned there VIII be no de-
preciation in the value Of investment put IL 10
possibe that the various temporary ADVERSE
eestures such as the Equitable Life affair." the
6-n,er tendency in call money rates. the STOCK
Transfer tax. the maneuvTing in the Far EAST
tbe uncertainty over the relations oetWeeh INC
railroad interests in the Northwest and the re-
eults of the winding up Of the Northern SecuII-
ties Company may encourage Iurlher @0I'4N'
among the hear element on the STOCK EAei"ile0
T.st weeks decline came at time when the
market was ripe for reaction. heavy se4llIis
Of Northern Securities shares on the curb oeVel-
oDed the fact that there were no fresh buyers.
and as a consequence the market was rorceo
down bv its own weight. There were TOO many
bulls who wanted 10 sell at the same time ANY
one who has followed the stock market reahzes
what il means when everybody tries TO sen q
once. especially at period when clever opera
tors who work for lower prices, are guhilils
for the bull pools and the enthusiastic puOlo
traders who always buy dear and sen oheap'
THE present range OF quotations the Stock
Exchange represents an enormous appFeclatioll
as compared with the low figures of 1904 but
she fact should be borne in mind that IN the
last wear there has been a tremendous apprecla-
,ior IN The intrinsic value Of American invest
rnent securities. owing TO the expansion III lle
industrial activities Of the country. That TINS
evanston viii continue for long time 10 come
there appears 10 be no doubt. unless the o1sl-
ness and banking interests Of the country shoaa9
baco,,,e reckless the latter being a probability
that some people believe possible. their theory
20 this effect being based on the willingness OF
bankers 10 lend 10 an enormous extent on syn
dicate oDerations to the fact that great deal
NJ money is tied UP in speculative operations
and TO the tendency in some lines OF business
to estimate on the future 10 degree that may
lead 10 overproduction. Notwithstanding the
ideas mentioned, the greater number or con-
Fervative men in the banking and business world
ere confident that the industrial expansion OF the
that in the majority Of cases corporate enter
,,rises are being conducted on safe and sane
lines. and that the disclosures IN the affairs OF
the big life insurance company are not typical
Of corporate management in the United States.
A dispassionate survey Of the position Of affairs
in this country furnishes little reason Tor pess-
rufsrn. and If stock market operators who are
overloaded with securities are compelled to pay
The price OF their folly in buying beyond their
means the country in general VIII not go TO the
dogs.
II should be observed that the troubles in
Wall Street last week developed without the ac-
commandment OF any adverse change in the stu
alton as affecting the business outlook in the
various States Reports from trade centres
showed an active volume of production in re-
sponse 10 a similar demand for consumption.
Railroad earnings continued heavy, bank clear
ings were large. crop reports We're favorable,
exports showed an expanding tendency and all
conditions in the industrial world worked tow
ard greater activity in trade. Big reactions
are the accompaniment OF a bull market in Sc
curities and If prices seek a lower level in the
current week the decline will not signify that
sustained bear campaign is opening The disso-
luton Of the Northern Securities Company does
not change the railroad map, it does not take
away from the earning power Of the railroads
concerned and II does not mean an end OF the
tor in the American railroad situation AS a
matter Of fact, the decision Of the Supreme
Court declaring the Northern Securities Com
pany an organization in restraint OF trade and
the final winding up Of the affairs of the con-
cern viii help rather than injure the value OF
American railroad investment securities,
far as their real value is concerned. while even
tually these factors will be reflected in the mar
ket quotations of the various securities. The
people who formed the Northern Securities Com
pany did not keep within the law, and the halt
called by the courts was the best thing that
could have happened for the companies identi-
fed with the merger. It matters not bit
affecting the true worth Of investments. wheth-
er the Union Pacific people selling their
Northern Securities holdings nor viii it affect
the general situation adversely If no new deals
are made or melons cut among the North
western railroads.
Last weeks break in wheat was a favorable
Development as il viii tend 10 restrict the opera
tions Of notorious Western gamblers in the stock
and commodity neutrality-suspicious. that have
bad an unfavorable effect sentiment and
legitimate trading. Efforts TO corner the wheat
market al this time. when prospects favor
bumper crop OF the winter variety, doomed
70 failure, and from the Of the May
option in the last few days il is not likely that
further efforts in this direction will he made
for which the Street viii be thankful The
money outlook favors the idea OF a short period
Of moderately firm call rates but at the mo-
uaent there is no occasion for the prediction that
IS heard in some quarters that trouble is brewing
.n the local money market The fact that lend
ers are able 10 secure fair compensation for the
accommodation that they extend 10 borrowers
IS an evidence of trade activity and a sffef