New-York tribune., 1907-06-03
THE WEEK IN WALL STREET.

at this centre, while abroad similar depression
was reported, weakness being due to forced
liquidation and aggressive attacks by specula-
tors who We're the leading bear operators in the
March panic. At the close some recovery was
shown from the low points. but the general av-
erage of railroad and industrial issues at
level dangerously near the worst of the year.
On March II. the day Of the so-caled silent
panic, the leading railroad stocks averaged
99.71. and on the subsequent decline of March
% the average was 1927. At the close of the
last week the average was trife above par,
while for the industrial shares the average on
Saturday about 1880 compared with S3.42
on March If. Declines last week were not ac-
companied by developments working against
the intrinsic value of securities. though the
Street professed 10 believe the crop outlook was
poor enough to warrant the expectation of
bankruptcy for the railroads, and In some cir
clcs it was said the country was on the verge OF
a far reaching and disastrous business reaction
The liquidation in securities represented the
forced selling of operators who no longer were
able to finance their holdings which had been
carried over the March break in values, selling
for the account Of spectators who overstayed
the rally that followed the weakness in the
early spring and sales by interests who were
compelled TO raise cash to protect their partici-
pations in underwriting syndCates Powerful
operators who have been on the bear side of the
market for months were big factors in the de-
cline, and they still profess TO believe lower
prices will be recorded before a sustained bull
movement develops.
High prices for wheat and cotton, due to ad-
verse conditions in the crop section Of the coun-
try, not bull arguments on stocks, but. ac-
cording TO the ideas Of the most conservative
interests IN Wall Street the decline that has
taken place in securities values more than dis
counts the effects Of poor crop year. Crop
experts and others who not expert in the
matter of Judging farm conditions say the out
look for large yields of wheat, corn and cotton
is extremely unpromsing. Yet the chances are
the country Will pull through. Perhaps there
won't be quite as heavy a tonnage for the rail-
roads, and possibly exports will show reduc-
ton from the big totals Of the current year but
then the farmers will receive good prices for
what they have to sell. and will have the salts
faction Of knowing they have large bank ac-
counts TO fall back upon when nature hurts their
gardens. The farmers of this country are in
better shape to meet season of poor crops than
ever before in the history of the country. They
have had several years Of bountiful harvests
which have been marketed at good prices. and
as a consequence they have in the bank a re-
serve fund to carry them over lean period.
And the country in general is in splendid condi-
ton to handle year of hard times. Fortunate
ly, however, there is no indication of bad times
ahead. There is some reason to look for
period Of healthful reaction but there is nothing
in the position OF our industries that warrants
the belief we are about TO enter days Of famine
Wall Street stories may make some people be-
lieve business depression is in sight but the idea
OF great business slump appears somewhat
silly in view of the fact that advance orders for
steel rails for delivery in 1903 already aggregate
$2S.0o000O. The Wall Street slump has not been
accompanied by a falling off in the demand fo-
steel or by a reduction in prices
financial publication in its issue last Satur-
day said that Security values had wellnigh
been destroyed through aggressive federal and
state legislation and by the inquisitory policies
Of the various departments Of the government"
Nothing of the sort has occurred Prices Of
stocks and bonds have not declined as a result
Of President Roosevelt's ideas on government
regulation Of corporations doing an interstate
business. and they have not been welInigh de-
stroyed a result Of state legislation though
state legislation has gone too far in many cases
and probably will not stand the test Of the
courts Confidence has not been destroyed
among public investors; indeed the public in
vestor has been heavy though quiet buyer of
vailed in the last few months The actual pur-
chase for investment account, especially for the
small investor who takes odd share lots has
been enormous, as the books OF every commits
sion house in the Street will show and no bet
ter evidence Of an absence Of fear on the part Of
the investment community can be had than this.
It is true some investors have been frightened
into selling by the manipulative tactics Of GER
tain spectators who work to destroy conf
dence in order to make profits the short side
of the market, but it will be found that the
great majority Of American investors who are
not mixed up in speculative deals are adding TO
their accounts rather than selling A large
amount OF stock has gone out of the Street in
the last eight weeks. and if prices continue to
decline the available supply for speculative pur-
poses will be further reduced. The great Iiqui-
dation that has taken place in Wall Street has
been due primarily to the excessive speculation
of the last three years, and 1t has been helped by
the hammering of prices by a speculative ele-
ment which has been assisted by many passing
factors favorable to a bear movement.
The Presidents speech at Indianapolis
showed no intention the part of the ad-
ministration to change its policy in the matter
Of moving against corporations and individuals
who disobey the law. no intention of retreating
from its stand in the matter of government reg
ulation of the railroads, and no intention of
proceeding on lines inimicaI to the best inter
ests Of the American investor and business man.
The corporations are not to be wiped out That
would be national suicide. They are however
10 be governed in a manner that will he for
their own good and for the benefit of the peo-
pie whose money is invested in them and the
great public which depends upon the corpora
uons for the things the public consumes
Vested rights are to be conserved. and it IS the
duty Of the federal government to see that cor