New-York tribune., 1907-04-15
THE WEEK IN WAL sTREET.

Operations in last weeks securities market
were made up in great part Of the transactions
of the professional element, commission houses
having few orders for ordinary public account
while little interest was exhibited IN the course
OF speculation by the more important wan
Street traders who were prominent FACTORS III
the advance that was engineered against the
shorts following the March decline. The absence
of a public demand and the fact that weak
short account had been eliminated encouraged
renewed pressure from operators who were sue
cessful on the bear side of the market IN the
recent slump. but declines. when made were
not extensive except in few issues, holders OF
stocks refusing TO sell their possessions on
movement that represented nothing intrinsically
wrong with conditions underlying the value of
American investments. Efforts TO bring about
long sustained bear market at present are not
likely to meet with any great amount of sue
cess The supply Of stock available for specu-
lative purposes is much lighter than it was
few weeks ago. owing to the absorption OF Sc
curlties by investors and by spectators VINO Will
hold their position on the bull side until prices
have advanced TO a much higher level. There
are few long accounts. such as those with which
the market was honeycombed in the winter, and
there are no factors in the position Of affairs
affecting the country's business that warrant
uneasiness the part OF the investment or
speculative community. Moreover, the loan
market has returned to position Of ease and
scares cannot be created on talk of tight money
later in the season. The fact. however. that the
outside element is not speculating while for the
present. at least. the urgent investment demand
has been satisfied. leaves the way open for
traders excursions in the direction OF lower
quotations. such operations having the support
Of Chicago crop damage reports
Competent authorities believe that bear moves
in the market of the immediate future will be
confined to quick turns II is a noteworthy fact
that the appearance Of selling pressure from the
room element IS followed by dulness in trading
rather than by a rush TO sell on the part Of
people who are carrying stocks on we'll protect
ed margins, and If conclusions are based on the
course of the market last week # is quite evi-
dent that owners of securities have no intention
of selling because Of the pessmistic talk that Is
heard in some quarters OF the Street regarding
the future Of business in this country. It is in
terestng TO observe that in spite of the fears ex-
pressed by certain fnanciers and theoretical col
lege professors over the business situation there
IS nothing IN the known position OF trade that
suggests the development in the current year OF
a period Of hard times or even important reac-
tion from the current volume of business in all
parts Of the country There is reason 70 believe
that there will be a healthful readjustment Of
our Industrial activities to a quieter basis, but
development of this sort will serve TO strengthen
and protect fundamental conditions rather than
drive the nation into bankruptcy. In the ex-
tensive reports received by The Tribune in the
last week, covering all lines Of trade. the gem
eral tone OF replies from business men was one
Of cheer and encouragement. No important
weak spots were recorded there was no indica-
ton Of a marked falling off in the demand for
consumption in the iron and steel industry. and
no suggestion OF a loss of confidence on the part
Of the real captains OF industry IN the future
stability Of our great commercial and financial
enterprises. Spectators for the decline in
stocks endeayored TO spread an idea that crop
prospects were unfavorable. but the government
report showing conditions In the winter wheat
belt OF April ! and The Tribune's reports.
covering conditions since that time. indicated
situation more promising than at the CORE
spending period year ago. when, It may be re-
called. an early favorable outlook was followed
by a season Of large yield
While it is too early to say that spring wheat
and corn harvests will be large. the bear ele-
ment in Wall Street may be depended upon 10
paint with their darkest coors a situation which
in few months viii become a legitimate market
factor Certainly at this time there is no reason
for depression of spirits over the outlook; and
the bountiful harvests that marked the crop
season Of 1906 the country will not go To
ruin. The farmers OF the United States make
up an important element Of the population. and
their buying power is big factor in the in
dustrial prosperity Of the country. widespread
crop failure would result in a material reduc-
ton in the nations wealth; It would affect the
money and foreign exchange markets most
adversely, decrease railroad earnings. lessen
activity in manufacturing centres and reduce
dividends on our investment securities. But the
fact that the country is so large, covering an
area that is subjected TO no set climatic condi-
tons while producing such varied crops, eIini-
mates the possibility OF q wholesale failure OF
the years harvests. The winter wheat, spring
wheat corn, oats rye and cotton crops Will not
be destroyed, except in the minds Of speculators
who want higher prices for food products and
cotton and lower prices for stocks, and hence
one need worry about the possibility Of the re-
suits just enumerated It may be well 10 note
that the agricultural community has had big
crops for three years and that the average crops
OF the last ten years have been larger than In
any preceding decade in the history OF the coun-
try, and as a consequence the farmers have paid
off their mortgages, have money in the bank
and are IN a position TO stand without especial
hardship a season Of lighter yield of grain and
cotton. The country's international trade posi-
ton. the state OF general domestic trade and
IN fact, ali affairs at present IN better con-
dition TO meet smaller harvests and any kind Of
adversely that may develop-even the election in
1908 OF a Democratic Presdent-than ever be-
fore recorded.
Money conditions at this centre have improved
To extent that has reduced loans for call
fands TO easy basis and brought time loans
to-the cheapest level noted in many months