New-York tribune., 1906-12-17
SECURITIES
THE WEEK IN WALL STREET.

| Stock market values hold remarkably strong
! IN the face OF high rates for money. Efforts OF
! traders bring about lower prices in the last
week were successful for brief periods but de-
oiines when made were quickly recovered. ana In
Fridays market extensive improvement was re-
corded notwithstanding the fact that call money
\ averaged more than 10 per cent The firm IN
| dertonc OF securities and the readiness Win
which they respond to the slightest buying or
| ders reflect a situation OF peculiar tecflhca4
strength as far as speculation is concerned ana
the abiding faith of the holders of securities
that after the present monetary conditions nave
been succeeded by normal level for loans quo
tations throughout the list Of active and lnacIVe
shares Will move to materially msher ie'ei'
And there are some good observers VINO pei7'e
that prices Will go TO better figures in the cur
rent month in expectation of the deVeloplhelt
Of an easier range of money in the new year
Prosperity in business is the basis Of bull en-
thusiasr, over securities Yet there are some
people whom the enthusiastic bulls class as
simple minded who feel that quotations for
the greater number Of securities more than
measure present and prospective business expan-
sion and who urge the exercise Of extreme eau
ton in all operations on the long side OF the
stock market snd these simple minded folk
make bold 10 say that prosperity is being over
done and that the current pace is Of the klno lA'
kills The high minded bulls. however. VINO are
working for the public welfare. and incidentally
for their own pockets see nothing but rosy spec
ulative clouds ahead and a long period OF pros
nari+v accompanied by common sense and con-
se-varism in The conduct Of the muIutudlnouS
business operations Of this great country
The high cost Of living the record breaking
prices for most raw and finished materials the
increased cost of operating railroads and in
40
funds in all parts of the country in connection
with sDeclllarive transactions. the centrallza-
-ior or wealth and various other factors which
are resulting from present prosperity are not
considered of any consequence as foreshaoo"-
ing A possible change al no remote period IN
the course OF affairs in the country by the IN
rerests who have securities 10 sell at h'gheF
prices and who intend TO concentrate the entire
force of their powerful resources on the STOCK
market in the next few months. in the hope OF
turning over their loads 10 the other fellows al
handsome profits. Then for all they care me
s-7nsb NAV come J. P. Morgan & Co. were
heavy callers Of loans last week and some uR-
thinking individual attempted 10 worry the
Street by suggesting that the big banking
house had decided 10 let some one else carry
its load in expectation of the development OF
trouble later on Such a suggestion. 10 the
Wall Street way OF thinking, is rank treason.
ANY man who assumes TO preach caution at
this tuncture IS put down as a poltroon or the
lowest order. and the man who tells the buA
that prosperity under certain conditions may
Kill itself subjects himself to the derision Of the
speculative multitude, Has not Wall Street
waited patiently throughout the period of high
money w nile the rest Of the country has been
speculating. and now that there is some light
ahead in the money market is the Street not
] he Il
rnirted that Wall Street has been moderate IN
SIS speculations in the recent weeks, but the
/ Street may be prevented from securing the
/ heavy profits il is counting upon by temporary
! disturbance that may occur in the country 8
money and business as the result Of the fuTi-
/ Gus speculation that has been going on in al
/ lines in various parts Of the United States
The large business interests in the country
/ however DO not see in current conditions reason
for the idea that a material setback viii come as
/ a result of too much prosperity. though they
! realize the wisdom Of q slowing down process
/ and the advantages Of check to the specula-
J rion that is rampant in all departments Of busi-
/ ness That there IS no fear over the future
among the big railroad men, who. perhaps. arc
better acquainted with conditions throughout
the country than any other class of business
men. is reflected in their willingness to make
/ heay, purchases for future delivery Of sup
niles. materials and new equipment; to contract
/ for new construction and for general improve
nlents that viii add 70 the physical efficiency
! of their properties These purchases and the
/ well founded belief that the progress Of this
country cannot be permanently checked that the
/ railroads must expand with the nation and
I that IN order 70 meet the pressure of lncreas-
/ ing traffic more money must be found for cap
/ ital requirements. soon will be responsible for
the largest outpouriug. perhaps. of new first class
| security issues in the history Of American rail
| roads The enormous increase that has been
made in the capital issues in the current year
| and the plans for large additions in 1907 arc
! causing uneasiness in some circles. but in the
greater number Of Wall Street houses and
! among clear thinking. intelligent business men
who realize the present congestion of traffic, the
/ great difficulties under which the roads are
/ working to I'll the requirements Of shippers and
| the imperative necessity of greater operating
facilities II is believed that the creation Of new
stocks and bonds is fully warranted-ndeed
| absolutely demanded. in the interests Of the
| country's trade and commerce.
The business Of the country has outgrown ths
4 facilities Of the railroads. Money secured by
| the companies viii enable them 10 meet the
! growing requirements Of trade in a manner that
| viii bring large benefits TO the roads. while il
! VIII promote the best interests Of our industrial
activities despite the idle talk that is made by
| lazy thinkers that the nations business soon
/ VIII he forced into receivers hands if the pres
ent tendency among the railroads To expand
| their capital continues. OF course, there is a
! possibility that melon" cutting may be over
done but the fact should be borne IN mind thai
in most instances the increase in capitalization
| is decided upon by clear headed far sighted
| able Drained business men who know the needs
OF the countrv and the extent 10 which the cOun-
try can handle new railroad financing without