New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-09-24
THE WEEK IN WALL STREET.

range Of quotations az the end Of the week
showed unimportant changes in the general list
as compared with Saturday. September Il. OPP
erations for public account We're not heavy.
while traders who not altogether satisfied
with the manipulative tactics Of the people who
behind the present bull speculation en-
deavored work for lower figures. though their
transactions failed reduce values. except in
the case OF so-called quick market turns. The
greater part Of the weeks speculation was CEN
tired on Reading. in which daily dealings aver
aged 10000 shares the movement I'm this is
sue being based on rumors Of increased divi-
dend and on the report that the Union Pacific
Company had secured control OF the Baltimore &
Ohio. control of this company carrying with
Il that of the Reading and the Central Railroad
Of New Jersey. Hartman ownership of Balu-
more Ohio will give the Union Pacific an
eastern outlet. and serve TO establish trans
continental road with eastern stations at Balu-
more and New York. and at San Francisco and
Seattle on the Pacific Coast. II all reports
true Mr.. Hartman and his associates now con-
troll an enormous mileage of our American rail-
road systems. and in a position to dictate
terms 10 their only important competitors. name
~, the Hill and Gould railroads. While il may
be great personal triumph TO Mr.. Hartman
10 secure railroad privileges which will place
his companies in the first rank OF American
transportation institutions there is little chance
that operation bringing under manage
ment the most important railroads in this coun-
try will work To the advantage OF American in
vestors or TO the position OF business in the
United States.
The speculative element in Wall Street is de-
pending upon further large receipts OF gold to
strengthen the bull position stocks, but re-
cent developments have suggested the posi-
bilty OF material reduction in the amount OF
exports OF the precious metal from foreign finan-
cial centres Already the Bank OF England has
taken action which will interfere with engage
ments of gold in London. while the Bank Of
France has practically announced its unwilling
ness 10 send large amounts Of the metal to this
country merely for the purpose of supporting
bull speculation the Stock Exchange. The
monetary situation in New York is not at all
favorable TO activity i'm securities and il is con-
ceivable that in the event OF further aggressive
bull operations serious trouble will develop in
money. the effect Of which may extend TO bust
ness centres where increasing industrial activity
calls for large amount OF financial accomno-
dalton. In the last week merchants were COM ,
PEELED 70 pay high rates for funds and urgent
demands involved large premium on all time
loans negotiated. Commercial paper is bringing
record prices while ordinary time loans are
being made basis practically equivalent TO
per cent. this rate Including a commission
Reserves of the banks throughout the week have
been materially depleted through excessive
speculation in securities and through the de-
mand for legitimate business purposes. includ-
ing accommodation in. connection with the
financing OF the years large harvests; Yet many
Spectators in Wall Street are preaching higher
prices for stocks and inviting the invest
ment Of funds I'm securities which at current
quotations return insignificant amount to
purchasers. In the greater number of securities
prices are dear. and. compared with existing
rates for money. present attraction for
buyers who deal in common sense and in
tegence.
Business conditions throughout the United
States are favorable but some alarm has devel-
oped among merchants over the strength in the
money market. and tine speculative enthusiasm
which is developing not only in Wall Street but
in many departments OF trade 1t may be we'll to
bear in mind that overstimulation in business
overspeculation I'm securities and commodities
and extravaganza IN general living in the past
have caused disturbance affecting individuals
and corporations TO the extent Of enormous
losses Wall Street apparently believes that in
the event OF the development OF trouble the
Federal Treasury will come 10 the rescue but
assistance from the government will not correct
evils which exist in currency system. nor
VIII IL cure the speculative mania which is be-
coming so general throughout the country The
United States has no credit account abroad. in
spite Of the exec Of merchandise exports over
imports. the apparently favorable trade balance
having been offset by heavy loans for American
bankers in European capitals and by the under
valua ton OF imports. Gold now being brought
10 the United States represents loans. and at
some future period American bankers VIII he
called upon 20 make settlements with European
lenders TO an extent which may cause disturb
ance here.
Conditions in the iron and steel market are
extremely strong. and according 10 reports re-
ceived from iron and steel trade centres there is
little chance of important reaction I'm the iron
and steel business IN the near future. II is to
be hoped. therefore. that this favorable situa-
ton. which presents an indication OF business
conditions I'm general Will not be destroyed by
excessive speculation in Wall Street. Iron and
steel trade interests report that the demand
from consumers is heavier than ever before.
In all lines the market exhibits extreme strength
and an instance of the current activity is fur
nished by the heavy sales by concerns which are
not connected with the United States Steel Cor
poration and by the demand Of this corporation
for iron from companies which are not affiliated
with il. The ability Of the United States Steel
Corporation supply its pig iron require
ments has been exceeded and in consequence
outsiders are receiving the benefit
f.. Conditions affecting the intrinsic value OF
American securities are unusually strong and
all indications point toward further improve
ment IN the country's business which. Of course.
means increased actual value in all railway and
industrial investments: but people who have
money 10 invest for widows and orphans are
not buying stocks at present prices Their at
titude. however will not interfere with specu-
N1H far.u mt, snTuWar