New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-02-19
The Financial World.

Recognition is general that security mars
strength is the direct osicqi sequel OK Nati'i' d
prosperity However. there are still some cou'.
ing Thomases who question the existence -
prosperity. Let the evidence be examined Ia
those primary statistics which reveal the cei-
dItion Of the plain people-none are more trus'
worthy than deposits in savings banks-aad
these show enlargement during the past few
years all over the country 20 an unpreeedentei
extent. Other familiar tests. such as postA'
revenues money order issues and the Writing %
new life insurance policies. all tell In no unce'-
tain tones that the people have money 20 spend
and spending it-expansion being the order
of the day.
Coming to larger and more condensed statistic''
railroad earnings OF high significance. CON-
parson with 1902, when security market values
reached the last average high point. reveals the
amazing fact that compared with that year,
last years earnings show increase OF 10
per cent. while capitalization has increased only
3 per cent-sn unexampled growth OF earning
power. And earnings are still on the ascend
ing scale signay testified TO by the report cr
Erie for the quarter ended December 31-show-
ing an increase in it's surplus approximatins
$4,000. -
What is the testimony OF commodity markets
With the single exception of decline IN cotton.
which apparently has terminated, every great
staple crop harvested I'm 1904 has been sold at
the highest prices known for years-sven cotton
itself the average for the crop having been
marketed prohtabIy 20 producers. Inevitable il
the deduction that the agricultural community
enjoys prosperity unparalleled.
Convincing evidence is furnished by the enor-
nous accumulation Of funds at all financial
centres. forcing loaning rates down to the lowest
known and actually inducing extension %
credits TO foreign borrowers which 10 the ex-
PLANTATION OF the gold export movement In prog
'ress- This is perhaps the most notable-cer-
tainly the most novel-evidence OF American
prosperity We are becoming a creditor nation
not only through trade operations but by ths
actual lending Of money, which can find more
profitable employment abroad than at home.
Union Pacific and related issues were the fea.-
ures in Stock Exchange transactions at the close
OF the week-aH making new high records.
That something extraordinary impends in THAI
quarter is beyond doubt Sensa tionalists az
weaving weird theories of competitive buying
for control, and corners and the Ike The fact
that Northern Securities and Great Northern
and other similarly situated properties have fig
ured conspicuously in the activity and advances
gives. OF course. larger consequence to the Union
Pacific rise than otherwise might be the case
What is difficult understand is why there
should be any wonder whatsoever that Union
Pacific stock approximates 13O-it is intrinsicaIy
worth much more. AS was shown in this
view some time ago. when the stock was around
par. Union Pacific development has reached a
point where the property earns through income
from Investment sum materially beyond all
that Is required for the dividends Il pays-leav-
ing the vast net profits from railway operation
much actual surplus. And as a record
like this was never known before. anything elsa
than Union Pacific's improvement in market
value would be illogical Reason for wondes
there is-but it is wonder merely that Union
Pacific market values have not before this be-
gun TO approximate in quotations something
like their fair and indisputable worth. And
Union Pacific stands conspicuous as q lustrous
testimonial to the national fact that history
records no previous development comparable To
the growth of the last decade in the United
States. ---a--