New-York tribune., 1906-08-12

nsrce- Great as our develorr1s,.
Nustrlai nsit. enormous as are orr - - N ne
porters OF manufactures. our pros-s-.,.iN as >,
- 49, upon our agricultural r-ss ~.
succession OF good harvests - T--.s.,a;4.-a
markets produces m ideal basis a., '.S. 9 sas
ana TINS Is the actual situation \, +, Fl sper''-y
crops IN themselves are not noo~...ay. G--s.
s.S'sI1 20 tlsse t11t produce them-lf ..
liicidehce OK production and Consumes Ne G.
which spells wealth Go bach 49,. 4 esrar4
ana condition was then IN ev-iss.s te1 y-a,,
was being burned for fuel and wio~ e'.~r c'ra
e,ar fn.Sa,.- 5 we l'tet N competition w,.. "a
slatn, Indian ana Argentine Offerinrz " 2ss.
could i've on the prices which he vs,. ~ 'ar-.,
ana this was what gave life ~ 49, = Ss,t1z~
Sstlnp9tsn. All Is changed now ~ SrTaa
bushei OF grain and every pOl1vT - 4 @ cY--,
we can dig out OF the soil there is ,..a wc.e,
lns demand Our population has 81 -, ~.
70 create an enormous new dOroe-.s-, SSes-- ~
and tne rest OF the world mas j1 ssS-,sa-t.
smaller measure kept pace vrisE s--S-as
growth. The primal necessItv 90 -, ;4sls,'ca,
eat-and the United States has beco--4 - : t9
food house OF the world 0'''7 ne c..
WaH street theorists may snser AZ et
eI9slons-nay attempt TO argue thsf ss.s- en-.
relation between crop Weld and ~. lie t ID,
Stocks-but there Is such relation - ts-.ss
important character. and there Is nos =. lr.s
,sssNf aEaHs" ~, ~ on the New York Stock -,
which VIII not feel sooner or Iafe- ~. y .aas.
eject of the glorious harvests grsntsJ ss..i-s
and utilized 20 the fullest extent ~ = Aa,.'s
genius. y Ar1s-cSa
But professional Wall Street. with o,..
narrOwness Of view refuses Ia cors1,s ,Sss,- II
poftamce or the great facts reviewed e. 4 =.
upon what seem to Il the terrors ~ - ta-,i
nlataet- Ane peSsimist points out fSas ~
money can be loaned az around 4 re- - -. "a
exhibits list OF securities upon VIZ. - ss- az.
rs not equal 20 that rate. True. thera -, - s.s
such. but equally true. there are mar -
return Is stil above the money Yield p~@s
that as u may, there can be no doube tl.s -
ing conditions bear within themselveg ~ T- Sas'
tse Of abundant money. There NAV 49,
furry during the crop moving period v.E.S =
west ana south VIII draw down their taIs-s-s
IN New York; but that such a furry 1'r -
gravely OnerOUs Is scarcely conceivable 49,
menSe gold production is going on an ia -
which actually and materially increases fTsr-,p
supply of the circulating medium Thz -
OF this may be remote. but is nOne-the-Ie-S -
tain. And as 20 the particular cOudisioo 49,
fronting US. whatever money may be tar,rs-..
lily wlthdFawn-frOm New York TO move the e.,
must come back multiplied when thosa -
are sOld-and the large surplus which vii f.
neglected abroad must still further enhsro. a,
foreign credits and strengthen our capsrlsv h,
import gold IL such action should be adVlsz.l
The buyer OF securities to-day may have h
carry them on a ) or 8 per cent rate for tr- ~,
six months: but II Is certain that altar ,,r
interest must decline, and on holdings Os a W:
it is a fair inference that an average rate al,
per cent will cover carrying cost. And f-r-s=..
more u must be borne IN mind that borr0xs,
OF money for commercial purposes usa 1. :
business activity for specific end and can ar.
TO pay temporary high rates in order % sss-
contingent profits. The buyer Of securities ID
under no such penalty. His revenue Is sga-
from individual effort. and he can afford q a
reasonable period to submit TO an Mtss.
charge which would be OnerOus 20 the msTci-.
or manufacturer. II the opinion Of the barza,
OF New York be worth anything-tO which usf
be added the opinion Of Chicago and other We'-
ern centres-there is no reason % appre-s-.
serious rise IN money rates Existing rates a.
reasonable In view Of the great commercial g
tivity which prevails. and are In thensallH
trustworthy signs Of prosperity AOnOTmar
low money rates invariably testify 20 doubt a.
distrust-hOarding and fear-abnormaIJ hz.
rates testify 20 panic Neither OF these e.
frames Is in the least manner d1ScernlDle t0-1.
The money market Is healthy and cOuservatVs
and will not stand in the way Of any specuialIi
Wall Street enterprise.
whether or not the security market fmmet-
a+eIv strengthens and advances in vigorous tasl.
ION ~ herdly seems possible that any male4
decline can be- scored for the general lst Ial
who sneer at market conditions DO not any lAs-
sr include important banking represeAlau',.
Standard railroad issues are in position u e
verv much better; but the same can oe 81
OF the tested industrials An ugly mco.--
seemed for time threatening IN NeW AOIA - -
traI when early IN the week bona pooi -
solved. enforcing some hurried Hia5Aes !. .9- -.
tiOn: hut a better understanding OF what a.a-
aIlv was involved dispersed uneaSines& -
truth Is that in no part Of the maFkel Is -
healthier condition than prevails IN tte van
bilt quarter as shown by tne pneilO.,ii, - -
creases OF earnings officially recorded tnis w.
Except Erie New York Central Is faI ana avn
the cheapest OF all the Eastern trunk Ane~
OF course. some Of the old overloaded loas
are still staggering Chesapeake q ONO siA'''
as sad a case as ChicagO-Greal WTsSesT sT,v