New-York tribune., 1907-12-02
THE WEEK IN WALL STREET.


last half Of the week reflected the improve
nnent that had taken place in the generai llilah-
caI situation and encouraged the belief IN some
s,ec,,la+ix,e Quarters that the time had come
for the beginning Of aggressive operations o
the bull side of the market Ii Is 10 De lopea =.
however that the speculative clement "iiiO =
restful under the restraint imposed oy lnohe'0iS
conditions, will hold Itself In chech u4i,ii
active onward movement can be cohoucleo
without the fear OF the redevelopment OF sellou5
trouble in the money world The posiLioil "
money and business Is on the menu a1'u H.
ought net to be disturbed at TINS Jnllc'ule ~
demands from spectators for accoLhhioo"tto
in connection with the requirements lhcluehl -
the carrying of stocks on borrowed 1unos' espe-
cialIv at this particular period of the year. "heh
the hanks are compelled to make provision Ior
the heavy interest and dividend paSiiiehlS ouo
January / and payments on new suocA eltiu
bond issues that fall due in the course OF the
next few months The advance IN sCOchS Sl
the end Of the week was based on TIE large
short interest in the market, and not on EFFORTS
bv the banking community 10 nlduS III dt0
campaign for higher quotations The snort III
terest was unduly extended at time "heh
financial conditions showed enough improve
nlent 10 encourage the expectation OF q cofl-
o1ete restoration of normal conditions In the
near future and operators who were wise
enough to take advantage Of the change IN Ine
monetary outlook had no trouble in rounding
I'D the shorts to the accompaniment or suo-
stantiaI gains in all the leading issues In addi-
ton TO the buying by the professional operators,
who had outstanding contracts on the snort
side of the market, there was moderate oe-
uland from investors. especially in the BOND de-
partTnent, where the attractive issues that were
selling far down the price list were taken out OF
the Street in good sized lots to be held for per-
nlanent investment. In the mortgage securities
market there also was an active demand from
interests who saw the opportunity of doubling
their money by the exercise OF sensible pa
tience.
People who believe the market is to go up by
leaps and bounds. that the losses of the last
fourteen months are to be made up at once ana
that an era OF uninterrupted improvement Is
developing undoubtedly are counting their
chickens before they are hatched- Gradual I'M
provement is looked for by the conservative
bankers but nothing like a speculative orgy on
the bull account is anticipated Indeed. the
banks, though far stronger than they were
few weeks ago, not in a position that war
rants active extension of accommodation TO
spectators, and there is every reason 10 believe
that attempts to renew the hurtful speculative
operations that were contributing factors to the
recent panic will be met with effective opposl-
ton from the banking powers in the Street
The larger banking interests were powerful
enough TO check the panic before 1t got beyond
control, and they are now strong enough 10 pre-
vent that class of speculation that Injuries Wall
Street and the country at large. IL Is q good
time for the investment of money for keeps"
1t is g good time for people to use boarded
funds to buy for cash attractive stocks and
bonds but il is not a favorable time for hot
headed speculative transactions. II spectators
who are anxious TO get rich overnight persist
in their intentions they will run up against
high money market again and find themselves
the poorer for their experience. Rallies. such
as those witnessed last week. are of course the
inevitable result Of a long period OF declining
values but they do not foreshadow q get rich
quick time for the traders, who have TO con-
duct their dealings on borrowed money. Tech
nical conditions I'm the stock market suggested
a rally. Fortunately they did not attract much
outside buying for margin account Small mar
gins viii not be accepted by the greater number
Of commission houses in the Street at present,
and If the brokers maintain this attitude the
possibility Of future distress will be reduced TO
a minimum
Confidence is returning and the people are
awakening to the fact that the country is not
going TO pieces. They realize that the recent
disastrous times in the financial world Were
not caused by federal legislation affecting
porations and that they did not spring from any
intrinsic weakness I'm the country's Industrial
position Money withdrawn from the channels
of trade through unreasonable fear is returning
TO the banks. the actual amount OF gold in the
country has been increased through imports Of
the metal to the extent of 500, ,000. .000 cash
ments in Clearing House certificates will
be resumed and weak spots in banking quarters
Will be eliminated. 1t Is apparent that the days
of corporation graft are over for the present. at
least. and that a higher plane of business
morals is developing. 1t also is apparent that
the business men Of the country are less fearful
of the future than they were a fortnight ago,
a reflection OF which is presented in their dis
position to belittle the talk OF business depres-
sion which some persons believe is in the midst
OF our industries There is no good basis for
the argument that the country is entering upon
q period Of extensive contraction in its indus
tries. Trade has been temporarily affected by
the stringency in money and the loss in con-
fidence. but money conditions growing
stronger and confidence is returning the result
of which Will be reflected in the re-establish-
ment OF normal situation in all departments
Of business, though for a time operations may
be conducted upon quieter scale A time OF
famine is based factors that are not in evi-
dence at present The foundations are as
strong to-day at any time in the history Of
the country, and mine has yet been sprung
capable of upsetting these underlying ccndi-
tions.
II business men are looking for a good bull
argument with which to back their opinions
they viii find one, that cannot be controyerted,
in the annual report Of the Secretary Of the De-
partment OF Agriculture, which shows that the
farmers of the United States poured into the
domestic and foreign markets in the last fiscal
year total Of s7,412, 900 600 in valuation of all
kinds of farm products. In the last eight years
the tctal results of the farms OF the United
States are represented in money valuation Of
s53.00O.00O000. Add to this the production OF
mines and total OF wealth Will be found
that cannot be exceeded by that Of any other
country in the world Secretary Wilson says:
THE farm value of the corn crop Of the last
eight years would pay for duplicating every
mile of steam railroads in the United States
and pay for their costly terminals. rolling stock