New-York tribune., 1907-04-14
The Financial World


Of any interest appear. Some OF the ~.
early in the week seemed to have eo,,a..s s''o''s
bidding In various parts of the rnarza, H.. -
SHOW recent spurtiness. Upon the otba- -.
virtually all the stocks being sold ara a., - -.
snort account. There is no show OF s,,bS..-s.-
Aquldatlon anywhere Last monsb's ..o,,
experiences pretty thoroughly comple,aa ,'S .,'-s
Much IS heard OF the plans under eonts-.-,S
ton by important interests. but M a+t.-.-.
execute such plans IS discoverabIe Sot pc 70
what seems 70 be the situation Is tha@ o-N-e1dAy
OF size are content with present JDsss s-- aitols
closely Watchful. it may be: but 1oF r.y .sI.y-
new. new commitments in any large way. Thus sI.s
market movements as we have are for t5s 9Nca
part traceable to the small INV trsSs -. most
the Stock Exchange itself. "ltnis
Scant evidence is anywhere to be found a. ~,
business recession which has been so rnuch -
rused by pessirnistic prophets Wall Stree -
rows are not national sorrows. Wall Street a.
engagements are not entangling the country, !.
Ntrse-lor wan street is finding itself Just a,,,-
ply Incapable OF debating hard times To tba -.
Of the Union ''
Many Of the reports OF plans for suyr.,a,--
railway construction, eanceIlinr rc,tr.ot-
otherwise restricting business prove IN a1r,--.
every instance to be untrue as. for exan,nIs -
official announcement OF the certainty 40 -
completion Of Western Pacihc-the Gould ey.,-
sion to the coast Nor is much credencs pl.,ss
IN the gossip that ST. Paul contempIates sh,-
comment Of its Pacific lines. Business nac.,.,
ties positively demand all the new ra,lro,a
4acllittes which can be afforded and busins..
necessities will gOvern-as usual
Encouraging is the evidence that propras.,.
railways are doing everything in their poUs- -
secure the best administrative talent at the LsSS
OF their actual working operation. The roo+-ss
that Stuyvesant Fish became at Iihert,- Li
vlces-the advantage Of his counsel his CO.
operation-were secured for Missouri ParIg,
by George J. Gould AIr. Fish brings to -
Missouri Pacific directorate character and CO.
Ing which cannot be impUgned OF like IN,
portanee IS the election Of Leon T. Loree to fba
presidency Of Delaware & Hudson in Success
/ sion 70 MIR. WILCOX, who retires because 20
impairment OF health. NessFs Fish and T,o-s.
represent the very highest railroad executive
capacity and the loftiest standa rds Of honor
When such men are eagerly sought for bv o,,-
great railroad systems there is no warrant ~,
for the yellow attempt to depict corporations az
characterless and predatory.
Easiness OF money IS now seen to be a natural
movement. In New York both call and TINA
funds are borrowable at very low rates. In
1,Ondcu the Bank of England has lust redueed
its discount rate from ; 20 IA per cent. and IN
the open market in London plenty OF money in
offered at lower figures than the minimum ban,
rats. Some of this result is no doubt due 10
liquidation or speculative accounts following our
March II panic. but more stiu is due to the
natural seasonal accumulation OF funds at all
the great centres And there is all the time
I going on steady Increase in the addition In
I gold. production of which metal reaches record
breaking volume.
Immediate effect OF this money movement fs
likely 20 be felt IN dividend paying stocks where
the net yield is now larger than the interest
that can be derived from Ioanable funds Con-
slider the fact that these paying stocks can be
bought TO yield over per cent, New York Gen.
/ trail Pennsylvania. Baltimore & Ohio Illinois
7 Central Louisville & Nashville Great Northern
+ Northern Pacific, Southern Pacific. Union Fa-
( cidc. Steel preferred Not one OF these proper
I ties but upon which dividends are well secured.
as the companies are earning much more than
/ they are paying. 1t would take laRg protracted
+ hard times 20 threaten these present dividend
rates. And bought around present levels profits
from advancing quotations are more than prob
able. Considerations Of this character power
fully appeal to foreign investors. who are always
/ in keen search OF the combination OF safety
and yield
/ Oddvlot buying continues on an unprecedented
scale. Savings banks presidents state that since
the panic there have been unusual Withdrawals
/ Of deposits for the purpose OF investment IN
I stocks This reveals the public in a new light
20 Wall Street Instead OF speculating on thin
/ margins. small capitalists are picking up bar
/ gains. The aggregate Of their transactions runs
10 hundreds of thousands OF shares. resulting
I I'm steady decrease of what Wall Street terms
floating supply" Later on this must make
+ short covering more difficult than heretofors.
I And this is striking commentary on the averages
+ good sense of the public. UndiSmayed by Wall
: street chickering's. they eagerly invest IN what
7 seem to be bargains.
And why should they note Basic conditions
remain inpres esnabIe The first crop report %
! the year foreshadows another bumper harvest
+ or winter wheat. while conditions approach thu
ideal for spring sowing OF later crops Unless
abnormal weather should prevail from now on
i we can safely count upon another ContinuinS
7 wear of amazing agricultural prosperity-and. AZ
7 often upheld in This review. agricultural PROS
perIty - the cornerstone OF cur financial
| structure. In Industrial circles. undiminIshed
activity prevails That barOmetric business.
+ iron ana steel fairly bOCms. During the week
/ such representative companies as the United
States Steel Corporation. Republic Iron and
steel and the IacSawanna Steel Company report
I contracts for sales OF rails and other products
+ equal to productive capacity for the remainder
OF the year, while some business is already being
booked for 1903. Such vast operations cannot
! he construed as Oppressive. They mean the
I actual energetic doings OF armies OF producers.
! They mean increasing wealth for wage-earEers.
/ they mean prolonged Good Times Against Suc1
/ splendid facts how pUeriIs sound the pTatings OF
/ that coterie Of Wall street spectators avoWed,y
/ committed 10 the short side
/ Of course. considerations of this character
may be ignored in speculation for an indeter-
I inmate period But the paradox OF declining
! security values while all other values eEhanca
cannot be forever maintained Speculation Is q
skittlSh thing, but sooner or later IL must wheel
+ into line with the actualities back OF it.
I Pennsylvania magnificent report for 1903
answers some recent criticisms Of that great
/ system And New York Central also makes
fine exhibit for it's year. In both cases. thefs
can be no question of ability 70 maintain exist
ing dividends