New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-01
The Financial World.

rnisconstrued.
At the end Of September, at the close Of an
adverse campaign Of three months. the cry Of
money market danger IS attended By tbs en-
hibft OF just one day wherein as much as per
cent has been charged FOR loans on car-o1
just one day passing the legal rats-the normal
rate. And. moreover there has been tins
throughout all the energetic agitation when
funds have not been available and practically
in limitIess volume. for fixed periods Of four and
six months around per cent!
The Bank OF Eng1and's rate rising 10 per
cent has been made the text OF especial bear
campaigning. But the horror Of such situa-
ton is hardly likely to cast down the spirits OF
American investors. for the ability % money In
activity. whether in Europe OF here. % earn I
per cent for It's owners seems scarcely an inter
national calamity. and fashionable procl&rna-
ton to the contrary amounts n1srsly TO mental
deeadenee on parade.
Yesterdays bank statement provided an sd-
ditional chill for oracIes who on each Saturday
for months past have been forecasting the ex-
tinguishment Of New-York Clearing House sur
plus reserves-this statement actually expand
ing that reserve surplus by some rnillionA
In the money market situation. naturally
enough. has been found warrant by careful
fnanciers to proceed cautiously In making mar
ket CONFERENCE.-The true not only Of our
foremost bankers but the common sense OF It
influencing operators of the caIibre Of Mr.
Keene. Without exception. such representatives.
of important Wall Street interests realize the
exceuencies Of our national business situation
appreciate the tremendous basic elements in1u-
entail for American good-dominant everywhe-a.
agriculturally. industrially, commercially.
They discovered aggressive deterrent fac
tors anywhere. It is merely as calm apprecia-
tors of phenomenal current prosperity that they
TT,
only to be all the more sure. Not one Of them
has been deluded into apprehension that orisker
rates than and per cent during crop moving
is fraught with danger. They wait merely for
the rounding out OF seasonabIe money demand
understanding to what vaster extent security
market development can proceed with crops
Neutrality-suspicious. those international con-
ditions which this year promise to bring gold
here largely from every other country ths
globe There is no shadow Of pessimism IN an
attitude like this It IS assurance making itself
doubly
And, meanwhile. though there has been
throughout recent months abstinence from az
tive speculation upon the part Of these greater
forces Of Wall Street, there has coincidenty
been not one occasion wherein any OF them has
been other than a confident holder OF standard
securities already in hand
One much urged bear argument" has repre-
sented that interests identified with interna-
tionaI bankers have been lying in wait to upset
the security market by sudden calling Of loans
on an extensive scale whereby to rush up IN
terest rates and create scare to force Hquida-
ton Yet when for the first time rates crossed
6 per cent on Friday. among the providers Of
funds in greatest volume those bankers had
notable Observation-Disclosures aspersion disposed
| of by test. Such prompt and thorough disproof
| fortunately makes clear. by one example after
another how characterless are the reckless
| canpaigners who find fascination IN denoui-
mating as criticism such tnnuendoes and sian
| ders as anywhere else than in Wall Street would
| be reckoned with criminal
There are clear indications that as soon as
the money market becomes equable, and that
must be near at hand. we will witness public
participation in the security market That the
public has been so generally holding aloof can.
indeed be largely attributed to the fact that
conservatism has governed investment advices:
change Of attitude in this regard upon the part
Of leading bankers and operators cannot fail TO
have the prompt result Of popular response.
That the market is full Of bargains Is not to Be
gainsaid for the list is long Of low-prced stocks
whose new fortunes warrant materially ad-
vanced quotations. Many properties pro-
vide dividends as sequels to recent years OF
building up-one railway equipment corporation
during the past week taking action OF this char
acter, Whereupon half a dozen related issues
forthwith reflected the progressiveness- We are
approaching a period wherein such improve
ment, attended by distributions to shareholders,
will become Observation-Disclosures Paper
common being. incidentally well worth watch
ing
In some conspicuous industrial quarters
moreover, VIII be found the. establishment Of
harmony where hitherto conflict has RACED An
early example will affect thu American Cotton
Oil Company favorably-
Among important CORPORATION meeting Close
at hand some likely to be productive Of sur
prises-agreeable ones. Canadian Pacific Qn-
creasing at the rate OF a quarter Of a million
net per month";. Atlantic Coast Line and St
Louis Southwestern are believed to be about
ready for the announcement Of further e1pan-
sion policies.
Though for official reasons there may be no
immediate disclosure Of plans for the advance
ment of Duluth, South Shore and Atlanttc's
prosperity it can be counted upon that Canadian
Pacific does not hold and nurse for years any
property ineffectively.
Among the weeks features was smash on
the curb in Chicago Subway quotations. Illus
trating the manipulative ability OF that "ag-
gressive short interest" IN the stock to which a
week ago attention specifically called in this
review OF developments adversely affecting
Chicago Subway as a property there are mons
Marketwise. indeed. the stock actually gets into
somewhat better condition-better to the extent
that enemies who for months have been lurking
in ambush are now become substantial holders
OF the conapany's securities, being able 10 grab
a volume of the stock through the liquidation
which their onslaughts this week ruthlessY
forced. Certain bankers who were lenders upon
the stock as collateral last week are able 70 %
owners now. The scoop" Is a speculative scan
dal none the less AS a business enterprise chi
"a co Subway has undoubted prosperity asSuTen.