New-York tribune., 1906-12-30
The Financial World.


bank meetings record increased dividends 70
bank stockholders. Increased wages for bank
presidents and other bank employes-indicatfvs
that wisdom conducts our banking institutions
The security market record for 1906 win pass
into history as the natural logical continuation
of the great investment movement which started
some three years ago. During the entire wear
there has been complete absence on the part or
the public so far as speculation Is concerned
speculative activity almost wholly confined to
professional Wall Street.
Examination of investment buying. which has
| resulted IN gradual steady price Improvement
shows that directly due TO increase Of national
wealth And the story OF increase reads Hzs
| romance. Ten years ago the United States was
isolated. producing more than it could consume
or sell. its planters mortgaged up TO the ears,
its prospects dubious. it's condition warrantins
grave anxiety. To-day our country IS In tho
front rank Of world Powers-its producers out
Of debt-possessins Astounding surplus wealth
tts dnancss sound and sane. its Condition TN
preSnable. Never before In world history has
there been such spectacle.
We have enjoyed a sequence OF remarkable
crops wherefrom consumption has overtaken
production; and the result is that our wheat and
corn and cotton and minor harvests become a
| veritable horn OF plenty. scattering abundance
imagination
not grasp the figures representing the value OF
the crops Of 1906 We talk about seven
billions" but we cannot get any clear idea OF
| the meaning. Nevertheless. we know that this
vast sum Is actually produced from the earth
and that IN one shape or another it goes actually
into the pockets Of our agricultural community.
| This furnishes buying power which taxes indus
trial plants to utmost capacity. And, in turn
railroad traffic is created Of unprecedented vol
| urne. Thus. step by step we see orderly progress
from farm to security market
Men OF Intelligence analyzine these conditions
have been buying and Sailing DOWN bonds and
dividend paying stocks to unprecedented extent
-and such buying has been actually facilitated
! by the lack Of speculative hurrah. What wal
Street terms floating supply" dirninishes all the
siEs; .~...usr, -.
labor has been taken into equable partnership
with capital. Railroads alone have Increased
| their wages disbursements more than one hun
dred million dollars. Industrial corporations
have done equally well in proportion The prac-
| teal result is that we hear scarcely nothing OF
any friction between employers and employed.
American corporations, Just OF their own ac-
cord, are giving everybody The Square Deal In
sible-because nowhere else has tnere been such
happy combination OF Natures bounty and
human capacity TO utilize it.
Money market action toward the end OF ma
year shows that currency reform of some kind
is inpsratfvely demanded Some absurd rates
have prevailed IN Wall Street for weeks Pay
ing 30 per cent. for call money would be laugh
able were It not dangerous. In no other money
centre Of the world are such conditions possible.
In London. for example. or per cent. is con-
sidered extreme. Adjustment OF our fiscal sys-
tam to modern requirements Is the need OF the
hour Our security market for quite a time
has been uaduly and Unfavorably affected BY an
anomalous money market. The country Is not
suffering from lack OF money-we have much
Il ort- "a E.1z
y IL cannot circulate freely when needed.
AZ the close OF tho year. Just as at the begin
uins of the year, believe that Intrinsic values
are h very large proportion exceeding rnarssS
values for standard stocks. And with no ex-
ceptional interference anticipate that 1907 viii
Yield handsome returns 70 patient stockholders
ot such standard securities.
Yet It Is only sensible and fair. honest and
Intelligent. TO certify the fact that some recent
developments are discouragtng. We have an
avalanche OF new securities-large volumes CON-
ing from chiefest railway corporations. THIS
qualities market condition To some extent-and
facts must be fairly faced and dealt with-our
security market Is on this account measurably
choked IT Is only idle and hypocriticaI to affect
carelessness as to this new feature in our stu-
alton. St. Paups increase OF capital stock. which
had every opportunity to be encouraging, re-
solves itself into mere grab game. Money
controllers on big scale eztingush the oppor-
tunity (the rights OF lesser (but none the less
legitimate) shareholders.
Finally there is result for yellow campaign
ing IN Wan Street George W. Perkins IS sum-
rnoned into court 20 defend his New York Life
Insurance trusteeshtp. In devotion TO policy
holders MIR. Perkins permitted his clerical force
to make bookkeeping entries which. according
to a political prosecutor, were very wicked-an
official accusation against Mr.. Perkins being IN
cidentally attached 10 an official memorandum
that Mr.. Perkins has really done no wrong. All
this sounds like puerility gone astray. We have
had nothing akin to IT since Gilbert and Sulii-
van Mr.. Perkins did something very bad, says
the Grand Jury; ('did 1t very welP): and then.
adds the Grand Jury. this awfully wicked thing
that Mr.. Perkins did was really for the good OF
everybody whom Mr.. Perkins knew. and for the
good of everybody who knew Mr.. Perkins EN-
claim the censors: "AIr Perkins is too young;
Mr. Perkins IS too progressive; Mr.. Perkins &C
complishes too much: Mr.. Perkins is--Mr. Per-
ktns ts-Mr. Perkins ought 10 be eXterminated
Is there a new gospel? Is success treaSonF Are
energy and Intelligence crimes? Such is The in
dtctnent to which George w Perkins must
plead.
Perhaps. though. we approach the epoch OF
technical. literal succinct phraseology in law
the execution OF the letter OF the Iaw-never mind
the spirit Now. suppOse-and this is an open
Wall Street review-we take the National bank
ing law for literal enforcement. Depositors are
not to be credited by National banks with funds
that they do not have on deposit II Mr. A depos-
its 100000 he may check for 100000. II Mr.. -
deposits 100000 he may not check for 81 .OOO,-
OvN Yet what Gin Wall Street) is daily prac-
tice2 Mr. A, with 100000 on deposit does
check FOR S1,OOOOOO. He does this with tho
yi NavL- Tya Will