New-York tribune., 1907-08-12
THE FINANCIAL MARKETS.
STOCKS NOPE TOUARD LOWER LEVEL UNDEl
HEAVY SELLING PRESSURE.
Money HardensFunds Scarce the World Ouer-Busness
Conditions
THE WEEK IN WALL STREET.

Wall Street is depressed and blue, and the
chances are it will be in no other mood for
weeks To come 1t is uneasy over the money
market situation at home and abroad, il is up
set over the attitude of state and federal au-
thorities toward corporations. and it is worrying
over the financial position OF certain interests
who are mixed up in underwriting syndicates
and who recently made vigorous efforts TO bring
about a bull campaign in securities at a time
when all conditions were against such move
ment. The present is time for bull activity
the Stock Exchange, yet the fact that gen.
eral factors affecting the financial situation are
not in favor of advancing values should not De
taken as a sign of intrinsic weakness in condi-
tions governing the real worth of securities.
For the investor stocks and bonds are cheap at
current prices For the speculator the market
looks like a better sale than purchase, ana
the oldtime professional operators of the Street
are dealing on the short side. in expectation OF
a much lower range Of values, Notwithstanding
the losses that have been recorded in the last
few days Prices in many instances last week
went below the panic record of March There
was heavy liquidation for local and foreign ac-
count the selling by foreign houses being for IN
vestment interest as well as for spectators. ana
the character of these dealings was such as TO
create great uneasiness in the financial COM
n1unity. And the local market was affected ny
the decline in British consols, which carried
EnEland's premier security TO the lowest price
since 1915. Berlin compelled to sell these
issues and interests who had been injured IN
tho movement naturally, causing feeling or
distr,lst over the financial situation at the va
rious European capitals.
Money rates at this centre were higher. in all
parrs of the world the price for accommodation
in the loan market were stiff and further smdll
engagements of gold were made in New YORK
for Holland account Sterling exchange De
clined well under the point at which exports or
the precious metal could be made to Paris but
an advance in the price of guilders made snip
II InFlaD n l.
to believe further heavy exports of gold Will be
made from here. exchange rates are against
such a movement. while the price of money mas
advanced TO a level which is distinctly against
shinnents of the metal from this city, but spe-
ciaI engagements may be made if conditions
abroad reach the point where the gold VIII nave
to be secured irrespective of the price palu
The Bank of France is willing to pay interest
on the metal in transit, and if exchange should
advance a resumption Of the movement or goid
to that centre doubtless would develop The de-
mand for funds from the interior was active last
week. and from now on the city banks VIII lose
money their operations with the INTERIOR but
in the event of stringency in the loan market has
Secretary of the Treasury doubtless will de-
post government funds with the local institu-
ton as he has the privilege of doing under the
provisions of the A1drich measure
At present prices the greater number Of Sc
curities are cheap investment purchases and
the people who have the money and inclination
to buy the shares of representative railroad and
Industrial corporations will find in these issues
a profitable channel for the placement Of their
funds Lower prices doubtless will he recorded.
and leading Wall Street houses advise the pur-
chase of stocks on all breaks for permanent
account. but they suggest to their customers the
necessity of large margins on purely specu-
lative transactions. a powerful bear party is
at work in the stock market II is helped in its
operations by the inability OF big interests to
support the market. by passing unfavorable de-
veopments. by the uneasiness in European cir
ces over the foreign financial situation, by the
strike of the telegraph operators, by the un-
reasonable attitude of certain states toward cor
porations. by the prosecution of the Standard
Oil Company, by the talk of a suspension of
dividends on the Erie preferred stocks and the
Southern Railway preferred issue and by crop
reports which indicate a lower Weld than last
year. Regarding the position of the crops. IL
should he borne in mind that the harvests Of
1906 were record breakers and that the indi-
Gated reduction in the yield this year from that
Of a year ago does not suggest a gathering of
grain under the average of the last ten years.
There will be plenty Of grain. and the farmers
will get good prices for it, and it is senseess
to the crop situation as a bear argument
on stocks.
At present however almost every feature of
the general situation is contorted into hear
factor and if the course of prices on the Stock
Exchange were an accurate reflection of cond-
tions affecting the real worth OF securities one
might well say the country approaching
the countrys industries are in strong position,
with no indication Of the development OF trade
depression Doubtless there will be healthful
setback, but nothing more than that, unless so
cialism and anarchy able to stalk through
out the land
Hysteria has developed in various parts Of the
country, but This will pass away and ii will be
found that the wise men are loaded with good
securities Of money making American corpora
tons. The corpora tons are not going out of
business The corporations that in the past
have had little regard for the law and the rights
of consumers will be properly punished. but their
assets will not be conf1scated by the government.
Some people have the foolish notion that pro-
ceedings against corporations foreshadov an end
Of business prosperity in the United States but
only light Drained individual would sell his
securities on such an argument. The United
States has had many domestic troubles and it
always has been able to continue in business in
spite Of adverse developments. Moreover. it has
grown rich and strong in the face Of various dis
turbanoes and there is evidence to show that
this expansion will not be checked for any length
OF time by worldwide scarcity OF money and
movement TO compel the corporations TO operate
within the bounds of the law.
GOVERNMENT BONDS.