New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-01-21
THE WEEK IN WALL STREET.

! IN the stock market. with the proportion of
good cheer no greater than the proportion or
sunshine to overcast conditions in the weeks
weather. The situation presented has been one
not reassuring, with securities prices declining
persistently in the face of steadily increasing
in money: and the week closed there
were still actively IN circulation rumors OF
operators houses in the Street being in diff
culties. and the chief consolation OF the bulls
that the short interest had been swollen TO
great proportions. It being argued that soon the
general decline must bring prices TO so low
level perhaps already reached. that investment
buying would begin, upon which the shorts
would rush to cover their contracts and a sharp
advance would follow. Undoubtedly the shorts
must cover by and by. but opinions differ widely
as to the time when they will judge that prices
have reached the level representing the max
imum OF profit TO them. many good judges of
the stock market believing that liquidation is
still far from ended. The last week has seen
the Bank OF England lowering its discount rate,
for three months maintained at the abnormal
figure OF per cent; but that decrease, although
significant OF q relaxation OF the severity Of
money stringency throughout the world. is only
10 per cent. which Is far from denoting the
attainment Of ease in money. and the banks
action has had stimulating effect on tho
London stock market At this centre the banks
action has had it's expected result In a lower
ing OF the rates for time money. which for the
first time In many weeks is row offered at less
than per cent for periods up TO six months:
and the call money rate has declined corre-
spondingly.
The immediate response OF the New YORK
stock market 10 a really excellent bank state
ment on Saturday. with fits increase OF S1S.1SS,-
600 in cash for the week and its gain OF nearly
100000 in surplus reserve. now standing at
SIS. AGO, 200. was q break in prices, Just oc-
CURED the preceding Saturday. There was a
partial rally near the close, but, as a week ago.
IL was on covering by the shorts. and not on
buying for the long account. The public is
not in the market. and there IS no present in
dication Of its intention TO enter H-as buy
srs OF course. for operations by the public are
always buying operations. From their Austen
ton from trading, as well as from the failure Of
the big interests TO start bull movement on
the improvement IN the money situation, It is
argued in some quarters shat Wall Street Is be-
ginning to discount relapse in the prosperity
OF the United States. Perhaps great inanciers,
having exceptional opportunity for knowing
cuTatey industrial and trade conditions may be
able to determine when the nations prosperity
reaches it's food, although some Of them have
been known 20 arrive at erroneous conclusions,
and IL may be that the high point has been
touched. But evidence OF the arrival OF that
condition is not to be had in the present course
rather TO be found In the vast requirements OF
the railways and large industrial corporations in
the way OF new capital Announcements of
these requirements and OF the plans for meeting
them have been many in the recent past, and as
one has succeeded another the effect on senti-
ment, as expressed In market action of the in
vesting public, has been cumulative. the re-
slization growing that in supplying the money
necessary for the corporations the
sources OF the money market will be strained to
the utmost for months TO come. and that the
success of any effort TO bring about a general
stock market advance in those months Is fore
doomed TO failure. The latest stock increase
announced has been that Of the Chicago &
Northwestern Railway Company, which has put
out an issue Of S25.O00.000 common stock all OF
which Is TO be paid for by March 10. The South
ern Railway Company is almost certain TO APP
pear soon as an applicant for funds which may
be raised on notes, as inducements for raising
money on new stock are lacking TO companies
the shares Of which quoted at below par
The bond market offers prospect for roads
needing cash, and a long list of other roads are
currently reported 10 be laying plans for obtain
ing needed funds
But these requirements are the outcome OF
the country wide prosperity, and cannot Justly
De considered as an index pointing to the wan
ing OF that condition The country is grow
ing enormously, in wealth and population-l,-
215.6S4 immigrants landed in the United
States In 1906, the largest number ever regis
tered-and business everywhere IS so active
mat the railways are unable with their present
facilities TO handle effectively the output OF in
dustry and the products Of the soil an incl
dental but highly important consequence OF
that operating restriction being the occurrence
OF frequent wrecks Of passenger trains with
heavy sacrifice Of human life. II follows that
the roads must enlarge their facilities IN what
ever direction such enlargement may be found
necessary. President Hill says that an enor-
nous Increase in trackage is the solution, the
COST TOT remedylng fully the situation being
placed by him at S5.500O00OO0 in the next five
years Mr.. HIS views opposed by Ger
tain other railway executives, but support Is
given them in the fact that the Increase in mile
age last year was only $3.50. In line with the
letter OF Mr.. Hill TO the Governor of Minnesota
IS the open letter issued last week by President
Finley. OF the Southern Railway Company who
says: zone Of the greatest needs Of the South
IS that its railroads should have additional track
capacity. No matter how many locomotives and
cars may be available IL is manifest that the
number which can be moved is limited by the
track capacity
One of the causes for the unwTIingness Of IN
vestors to come into the stock market as pur-
chasers OF railway shares is without much doubt
the series Of Investigations and prosecutions of
which certain roads and combinations of roads
are the objects an unfavOrable impression hav-
ing been caused by the disclosures obtained in
the course Of these proceedings and uneasiness
having been aroused lest future DEVELOPMENTS
may be pre1udicial TO the companies. Then too
X IL realized that increased cost Of labor and OF
material and higher dividends cannot but re-
strict and Will be likely to decrease the net earn
ings Of the roads, and that their colossal ex-
penditureS on new construction and equipment
are to be made in a period of exceedingly high
prices; to which considerations may be added
the prospect presented by the activity Of Con-
gressmen OF further heavy necessary outlay
full dozen Of bills now being in committee pro
Tiding a wide variety OF proposed regulations
the enactment into law of almost any one Of
which would mean materially increased exDense
20 the railways engaged I'm interstate commerce.:
that is 70 say to all important roads Not much
respect is expressed in this country for the
opinion OF "The London Times" that Mr. TIill's
plea for a great expenditure for new mileage
Involves heavy tolls to the millionaires The
railways are truly the arteries Of the country's
commerce and Industry. and the clogging OF the
the tmnairmRnf