New-York tribune., 1907-06-09
The Financial World.


loss tales are as numerous as ever Forecasts
of business contraction retain their emphasis.
The disconsoIate crew retreats not at all.
Tested by volubility all business prospects ara
poor prospects.
But what fair observers fail to find is corr
roboration anywhere Of even respectable frac-
tion of the tales that told and the pre-
dictions sent whirlng. Business does not come
TO a standstill-trade conditions actually ars
nowhere abnormally disturbed. Instead. prac-
tically every commercial and industrial record
attests progress. Amply signifcant-a national
tokens the news which just at the close OF
the week comes from Pittsburg-vrtuaIiy
every iron and steel producer there so far be-
hind booked orders that plant expansion be-
comes a universal necessity-every manufact-
urer at the metal centre, every one without an
exception, giving orders for new facilities
wherewith to increase that production which
mounting demands dictate.
And as to the crops. there still remains no
necessity to add one jot to the calm epitornsl
of John ]. Mitchell: There will be plenty Of
wheat There is nothing in the crop situa-
tion to worry over
In the security market itself what develope
is healthy betterment Such improvement
Is scored-not large. II is true, far@
reflects a renewed public interest for 1t is uns
lie as customers have had much TO do with
the weeks advances. Indeed, without the ap<
pearance OF this element we were likely to
have had further substantial price reductions.
From the technical standpoint the market Is
undoubtedly improved by the fact that stocks
in large volume have recently fallen into ths
hands of exceptionally strong financial inters
ests. Influences that united TO knock dowa
prices when Wall Street last winter began
|
recently been apparent absOrbers Of stocks as
bottom prices were reached. Such purchasers
! have securities which on the basis Of going
dividends yield substantial profits above normal
interest charges upon their investments. And
such holders are. Of course strong enough to
bide their time for opportunity to obtain prohE
through a market turn. situated not 10 bs
shaken weaker people are by any new mar
ket hysterta. AS one who has the right 10 speak
for such powers said yesterday: What We
have bought We can keep II there Isn't any
| market now. wait until one comes. We
| can put our goods on the she1 and slt sun
until buyers come along-and they are certain
10 come 1t is only question or being patient
| for while
That this is the concrete view OF fnanciers
who are prominent in Wall Street can be ac-
counted pretty certain. Such men realize that
| az present prices the average security upon
| the New York Stock Exchange is selling on
| bargain basis What is not too reputaole -
| that some of these same fnanciers are largely
| son that these very leaders combined IN many
| and devious ways to scare and shake out the
| economy the exhibit is not inspirtting-it IS
| pitiable: but tall viewpoints Of consideration
| aside) the fact Is Just az indicated. Not u
| recent years has the speculative public ownerS
/ ship OF securities been smaller in percentage
| than now and within the same period nsveK
has professional Wall Street ownership BEEN
Isn't there exceptional significance in r1arkas
| situation like this?
But IN considering the situation there Is and
| other phase which should not be overiooksd
| The Indifference OF the public speculator II nos
| shared by the public investor. Investors aS4
| proverbialy cautious in their operations FhstS
| action is the direct opposite OF specuscvy
| action. The enthusiastic Spectator buys moSt
| and moro on rising market-the investor par
| tiently waits for favorable opportunity. anS
/ what he buys he ordinarily keeps Such op-
| pOrtunity is afforded now-and advantage OF -
| Is being taken
OF the weeks developments what probaoiz
| received closest attention IN Wall Street had
/ 10 do with the declaration Of the Smelling
| Trust dividend. The rate was increased-bus
not as Wall Street had anticipated- The
per cent was increased TO S-not TO 10 per cent
| as most OF Wall Street had been led 10 believ9
| was the official promise. II IS not strange thaS
the sequel has been heaviness for Smelling
/ quotations. II is now said tand probably truly
| said) that there never was official sanction Of
the 10 per cent dividend predictions. That ths
Messrs Cuggenheiu. masters OF the Smelling
| Trusts policy. have been guilty OF any stock
| jobbing deceit will not be accepted by fair
| minded men who are familiar with the Gug~
| geuheIm business record The Untortuuats
| thing is that people who seem 70 have beeu
| pretenders have for months past been
| proclaiming what they themselves have labeled
| as official informatiOn-while from no quarter
was obtainabIe disavowaI of the pretences;
| though. of course il is not the part of digniled
business interests 10 spend time protecting and
| directing spectators the Stock Exchange
| Much more serious problems in this instances
| confront the corporations managers. That ths
| Smelling Trusts profits very large and
! that a 10 per cent dividend could readily have
| been established is we'll enough understood by
| everybody familiar with the trade situation.
| But when trade changes threaten tand in tho
| smelling situation such changes have become
both imminent and serious) the careful fnan~
| cial manager is not slow TO recognize safe
| guarding necessities. Far better an per cent
| dividend that can be maintained possibly for
| some years rather than a sudden jump 70
| higher figure that might Just as suddenly have
| to be cut down.
| Until now IL mas seemed unlikely that ths
| Smelling Trust need apprehend effective COM
| petition. In large degree this trust has had
almost a natural monopoly. It has commanded
| control OF the smelling business by reason OF its
| capacity and by the character OF its services
| Mining interests have without much grumblns
paid prices which have represented extraordl-
| nary profit to the srnelters-there was just no
| other DlaCo To SO-thA Amerfcau Smelling and