New-York tribune., 1907-09-30
THE WEEk IN WALL STREET.

were effective influences in bringing about lower
prices in last weeks stock market. but the de-
cline was not accompanied by actual deprecla-
ton in investment values. except in a few cases
where special factors upset intrinsic worth Inc
bear element. nevertheless. found plenty of am
munition for attacks against speculative holo-
ings. Evidence of forced liquidation by IN
terests who for many months have mls1udgeo the
market. the bankruptcy of the New York CITY
Railway. which was caused In great part by the
methods employed in financing the so-calleo
traction merger; the readjustpaent of copper 10
a lower quotation level, the unfortunate famhy
troubles in the Illinois Central, the proposed
issue of New York. New Haven & Hart
ford stock and the frrner tendency in the money
market contributed to the enthusiasm exhibited
by the operators who are anxious to depress Sc
curites but it is well to note that these factors
did not cause alarm in business circles through
out the United States or induce selling OF IN
vestment issues by people who do not believe
current Wall Street troubles foreshadow the
development Of long period of business de-
preston. 1t is admitted in most circles that the
industries of the country Will be readJusteo W
a quieter basis. that imitation and overstimuia-
ton will be followed by reaction and that the
effects of rotten financiering in certain corpora
tons will hurt for time some lines OF trade
but more particularly individuals connected with
such operations. II is not admitted, however,
that the business and financial outlook spels
national bankruptcy and the withdrawal OF the
peoples money from solid investment securities
The money market is not favorable TO ouii
activity in the stock market at present II Is not
favorable to new enterprises demanding large
accommodation, and 1t suggests extreme con-
servatism on the part Of merchants SPECTATORS
and corporations. particularly the last named
which have been expanding at rate not war
1anted by the supply of money in the country.
A period Of conservatism in all quarters. the
elimination of corporate abuses, the squeezing
out of water the capitalization Of various con-
Germs and the punishment Of companies that for
years have been a law unto themselves, dlSTe-
garding the federal and state statutes and IN
dorsing transactions inirnical to the best inter
ests of the general stoCkholder will help the
country at large and strengthen the intrinsic
worth of investment securities. The copper sit
uation looks bad on the surface. but the actual
position Of the trade is far better than ordi-
narily assumed, and the reduction in the price
of the metal must soon be followed by an active
buying demand from consumers for the good
reason that supplies in the hands of the users
of copper are low, while there has been no ma
terial let-up in the orders received by concerns
that are the largest dealers in goods the manu-
factI1re of which involves a heavy demand for
the metal The copper stocks have more than
discounted the decline in copper prices and prop
able lighter dividend payments for snort tllne
and that conservative interests realize this Is
reflected in the character of the buying of the
various securities at the current level This
buying is not of the sort that is calculated to
bring about a bull movement, but IL represents
the longtime operations Of people who always
huv stocks when quotations are low and who
can afford to sit upon them for a protracted
period Good buying is reported in all the best
railroad stocks
The known financial needs Of the New York
Central at time when corporations find ex-
trerne difficulty in borrowing money at reason
able terms and the decision Of the New YORK.
New Haven & Hartford to increase :ts capital
ization do not encourage speculative confidence
of he TIyn
chances are both New York Central and New
Haven will receive further close attention from
the bear crowd in the course of the next few
weeks, while this element also may attack ST
Paul merely the theory that in comparison
with other high grade stocks its fall so far has
not adequately measured changed stock market
st. Paul IS strongly held. but there
doubtless is some of the stock that will come on
the market a result Of the urgent cash needs
Of certain holders. Efforts are being made to
create uneasness over the position OF the United
States Steel issues, and attacks upon their prices
are made on the basis of possible contraction
In the iron and steel trade IN the near future
similar TO that in the copper industry but il is
not likely investment owners Of the preferred Will
be willing TO part with the stock after studying
the strong financial position OF the company and
the reasons why the United States always will
enjoy in its iron and steel trade more years of
than of depression. The United
States Steel Corporation had difficulty in
paying dividends its preferred stock at
time several years ago when earnings showed
heavy decline. Since that period it has accumu-
lated an enormous cash surplus. 1t has spent
millions from earnings the physical better
ment of the property and has placed itself In
q position TO show good results even In years
Of adversely. United States Steel common some
day will be an extremely valuable asset
Railroad. earnings coming TO hand reflect no
important reduction In the volume OF merchan-
disc traffic, but railroad men look for some de-
crease in the course of the next twelve months.
Crops are beginning TO move TO market in vol
ume and adverse weather conditions in certain
sections Of the corn belt have done no material
damage. Money is going from the East to the
West and South in large amounts for crop NOV
ing purposes, and though bank reserves at this
centre are declining there Is no uneasinesS In
banking circles over the money market outlook
Conditions In the foreign exchange market and
in the money situation abroad do not suggest
the possibility of shipments Of gold from Europe
to New York this fall, but scarcity Of funds
here will bring out government deposits for the
banks, the Secretary of the Treas
ury has signified his intention OF using federal
funds in the channels Of trade. The convention
last week adopted reform measures that It is |
hoped will find favor with the national law
makers and serve to remedy the many evils in
the current currency systen-evils that become
particularly marked in the period when the in
terror is compelled to call upon New York for
accommodation.