New-York tribune., 1906-07-01
The Financial TorYd.

Every day Of the past week has nrousYf 80
news. Each day has had its bear camua,g-
The good news has been of suhstaufial chae-
acter The bear raids have been aimee -
fOrm1y successful such anomalies are 0l,isa a.
the Wall Street way. Market quotations 1,ss
some time ago all claim TO being anytime IIlz
a fair reflection Of value AS. indeed was V-aA5s
ago pointed out In this review, we have cons
into new market condition wherein basic co..
ditiOns-Ordinarily dOminating-are ignored a.
receive cOntemptuOuS consideration. It has hssr
the Outcry OF pessimiSts that important ffneuC,s1
interests could no longer be depended upOr a.
helpful that the big men or Wall Street r91
been quietly relieving themselves Of their sf5oks
that quotations must for some time % come take
care Of themselves. This. OF course. iuvolvsI
the forecast OF liquidation by others than thogs
Of greatest financial strength
Apart from whether CT not the bear insIsta1e.
was right, that strongest owners OF stocks h1s
sold out and were ready for price declines We
have had for some time the exhibit Of a market
almost unprotected. Net results show IN figures
severely shrunken. A month ago many stocks
were a dozen or 20 points higher than they are
nOW-nnOst stocks materially higher. Atteudllie
this change we have had spUrts of activity
wherein Tatding manipVlatOrs have sold hy
Wholesale stocks they did not own a short IN
terest extending week by week, until now e
reaches proportions probably unequalled for sew
eral years. OF liquidation there has been some
evidence during the past fortnight, not so much
previously Any owner OF securities capable or
nervousness must naturally have had cOnhdence
shaken By the crOvding hurrahs OF our gallOring
pessinnists. Many fables have been cOneOcteG a
vast deal of foolish Misrepresentation given cur
Fency. But-iact being regarded-what more
than any other disturbing element has helped
the bear campaign along has been the growing
feeling OF uneasiness in important business cir
eles induced By apprehensiOns OF departure from
the American spirit Of fair play
In the uniform record Of current business news
there is daily proof Of phenomenal national
Good Times. labor IS everywhere prohtaoly eIa-
plOyed, mills run overtime, general trade sur
passes former maxlmuHs, crop reports STOW
better and better. No bad spot shOws-sO far as
legitimate business affairs are anywhere In
VOWED
Attempt is made 70 arouse some alarm By
stories OF impending warfare between the United
states steel Corporation and Southern steel pro-
ducing companies. but it requires only ele-
mentary knowledge Of the steel business 70 real
ize the improbabi!ity OF any such development;
and IL Is significant that such representa-
tiOns appear just at time Wnen cer!aln On~
certain speculative interests seem deslrOus or
depressing the security market Having nOtn.
ing tangible from which % weave the fabric or
peSsimism they manufacture little raw ma
terial Of their own.
n Is not likely that the Steel Corporation is
worrying much over this question should tne
Southern companies cut prices here and there.
the corporation would. no doubt. De quite able
20 meet them. and II would be a fight OF pysnly
against giant However. by dint Of VolUnlilOuS
Selling preferred Steel has been put down 70
par and lower, and the common stock below 81
Now. compare the price OF the most eonSplcuz
Gus Southern cOnpany-TenneSsee coal ana
Iron-with United States Steel common a
share Of Tennessee Coal and Iron is worth N
the market about $3.50, quoted value approach
ing the total cost Of ve shares OF Steel common
Tennessee Coal is now paying yearly DIVIDENDS
at the rate Of per cent, after lapse o. olVl-
dend payment for five years the coulpany's dlvi-
dend resources beyond payment OF charges last
year being S1251.412, or barely q fraction over
barest falling on In profits would depFesS the
surplus below present dividend requirement.
Tennessee Coal and Iron at $50 being a menipu-
lated mystery. It Is pesged- 4nteroorouSh
used to be
Now, turn 20 Steel common-no dividends
ave been paid on that stock since the suspen-
IN
months since elapsed the earned surplus avail
able for dividends approximates the colossal
dends on Steel common for fye fun years
There has been general natural acqulescence on
the part OF stockholders in the wisdom OF the
common stock dividend pOstpOnement which en-
abled the corporation to maintain the integrity
OF it's preferred dividend through lean years and
which has now brought the treasury up 20
position Of impregnable strengthen when
Steel common dividends are resumed there VIII
be no question as to their maintenance For the
conservative foresighted investor a rare oppor-
tunity for sure and large profit Is offered ny the
current raids that the gamblers are maE-ing
upon United States Steel issues both preferred
and common
AS IN the steel trade so In the copper trade.
hitherto unheard OF prosperity prevails. The
19-cent price for copper has become normally
could only be thought OF in connection with a
corner other extraordinary condition Now
it IS maintained as simply natural And this
has been brought about quietly. UnOstentatiOusly.
without speculative accompaniment Just the
result oe an enormous new demand for copper
metal-a demand bound to grow.
Fortunately, at this time the copper situation
financially has cleared up. The old rancorouS
while the Amalgamated Copper Company is not
a monopoly, having plenty Of active competitors.
the various producing interests wisely act IN
harmony. Concrete evidence Of this satisfactory
situation is furnished by increasing dividends
for Amalgamated and Anaconda and many minor
companies. Copper prosperity is so firmly found
ed that Just as in the case OF steel prosperity
standard securities representing 1t can submit
to bear attack with cOmDlaCeucy. Pounding
chance to accumulate stocks on profitable in-
vestment basis.
Anything like fair scrutiny and study Of the
current Wall Street situation as revealed in such
activity as is showing in the Stock Exchange or
reflected in the tUnUltuoUs talk on the Curb
discIoses two facts that are enAshtening One is
that every oracle is bear. every little trader
everywhere short Of stocks; and the other Is
that the public holds aloof from the security
market, an attitude maintained for weeks past
Commission brokers are doing little, outside
customers are not IN evidence anSW1eEe-4nd
this is as true OF sellers as Of buyers The pub
lie stays content to Just look on Though there
has been enforced liquidation Of margin ac-
counts. actual owners OF securities are not con-
SpiCuOuS in the huTlv-burly, making sacrtncsS;
and the loud representation to the contrary IS
falsehOOd.
Moreover, while not participating there IS no
reason to believe that the public is Unwatchiul
We do not have in Wall Street nowadays Jnas
old public which could be led--cajoled or eu!lsa
into doing placidly what somebody else mlgil1
prescribe. The public OF to-day is Wide-aWahe.
has learned, demands to be shown lis able 70
judge. TO decide and TO act. when 10 Is shown
And this aptitude OF the public, IN IT'S posi-
bilitieS-prObabilitie ev-n-challengeS aJtentlon
Therein Is the power that can turn the Secullty
market whenever that power chooses to SHOW
readiness. With Wall Street becoming par
gain counter. the public will not need larSs
leadership to start full-tilt into campaign %