New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-06-11
The Financial World.

depth Of dullness for the year "Wednesday
Thursday and Friday each made new low rec
ords in volume Of transactions, operations rem
resenting nothing more than professional scalp
ing. Saturday, however, witnessed distinct
revival of interest induced by favorable de-
velopments in the affairs Of the Equitable Com
pany and by the evident progress made through
the efforts of President Roosevelt toward peace
between Russia and Japan.
Very notable is the fact that for the past few
weeks price movement has crawled upward de-
spite bear attack and in the face of aarnist
rumors. Professional Wall Street has fixed ,is
eyes upon Equitable affairs and has refused 10
recognize the far greater influences making for
continuance of prosperous conditions. All
fundamental facts maintain promise Of actual
development exceeding the high records OF re-
cent years. Crop outlook is excellent. the gov
eminent report for the week showing recthca-
ton OF backward weather conditions for an
spring sown crops. With simply normal
weather from now on harvests will be reached
which viii equal or exceed any previous yield
and what is most important. they will find
consumptive demand which will maintain re-
murerative prices. There seems to be no douSt
that 1905 will record an addition to National
wealth of unprecedented sze-and herein ia
found reason for expectation Of security market
Improvement.
Good crops at good prices an enhance
ment of buying power from our productive COM
.nunities which will stimulate all industries and
keep the wheels Of progress turning. There is
no slackenng of production in iron and steel
manufactures. all important companies from
the United states steel Corporation down re-
porting orders on hand sufficient to tax produc-
tive capacity for long time ahead. Similar
conditions exist in the copper trade. and as for
al no Erad
streets for the week says: The situation this
week may be summed up in the phrase bet
ter feeling"
Deterrent influences fade away-upbuilding
factors remain. There can be no question that
termination Of war in the Orient would be ap-
plauded by every financial market in the world.
Not only does humanity call for cessation OF
warfare, but so also do the financial and COM
mercial interests of every important nation.
Continuation of hostilities is a constant threat
to the government securities Of the countries
at war and an ever present menace to COM
mercial transactions These conditions have
existed for considerably more than year and
have been potent in restricting security market
movement the world over. 1t was seen yester-
day with what eager delight financial circles
welcomed the news of President RoOsevelt's wise
timely action Should his efforts meet with sue
cess-and this seems more than probable-Te-
sulting in peace. not a Bourse or Exchange IN
Europe or America but will instantly respond
And particularly will the New York Stock Ex-
change be Influenced. An immense Oriental
trade with this country is just merely awaiting
peace-a trade which will swell the revenues Of
our transcohtinental railroads and Pacific steam
shin lines and open vast new markets Coming
at time when there is not single home de-
velopnnent of Importance of sinister character
yyill of
swift and conspicuous.
Testffying to these waiting conditions is the
notable fact that recent stagnation Of specula-
tion has not resulted in Decentralization Of prices
Subjected to bear pounding. the market has time
and time again been forced down a few points.
only to disclose absolute scarcity Of stocks.
There has been little liquidation; owners OF
securities have not taken alarm. The technical
result Is the extension of a short interest OF
large proportions which must at some time re
covered, and this movement itself when it
comes can easily cause a very sharp upturn.
That element of Wall Street which has conf
IDENTIFY committed Itself to the short side in the
avowed belief that National prosperity is
sham. and that only disaster impends, finds
itself steadily deprived Of ammunition by the
simple working out of natural problems Pros
perity is gigantic fact not to be talked away;
and so long as nature continues bountiful ana
American genius utilities opportunity-just so
long must enhancement Of value continue the
logical sequence. On these broad grounds the
investor of America can rest firmly confident.
OF high significance IN current market move
ment is steady absorption at advancing prices
of first class bonds and gilt edged dividend
stocks. In the Southern group the weeks trans
actions resulted in substantial advances for At
,.ntio Coast Line Louisville & Nashville and
Southern Railway. The customary talk of ma
nipulation was heard. but this can be dismissed
without cofnment-Southern railway stocks ad-
vance on simple merit: the prosperity Of the
South is so great both agriculturally and IN
dnstria1Iv. that 1t necessarily follows in revela-
flor, of immense railroad earnings Outlook Tor
the cotton crop is satisfactory. but the South IS
no longer dependent upon this staple. II, 81
course. remains an important factor In i{s
commerce. but has not the overshadowing I'M
portance which attached to it ten or twenty
years ago. The South is becoming a great
manufacturing centre, with every indication
that development in this line will steadily H.
crease. Shrewd investors recognize these facts
and put their money into Southern raliF oAHS ~AA
industrials freely.
1base conditions are paralleed in our North
west where, in alliance with CANADIAN pro-
pression. remarkable expansion shows IL can
not he hotter typifed than by reference to the
500 system. which under Canadian Pacific con-
troll displays q progressive earning power fairy
ostonfsbinp Ten years ago the 500 system
sbovrad a deficit of over half million dollars
after payment of charges. The last nseu yea.
showed a surplus exceeding s11OOOOO- III ASVS
initial dividends were declared on its preIeFteu
stock at the rate of per cent and on It's com
-fVaFan 2 l.