New-York tribune., 1907-01-20
The Financial World.

| Of this sort stock iobbery statements Thar
substantial liquidation has been forced is clear
enough; but that such liquidation has at anv
/ time endangered the market as a whole is but
| the babble Of foolishness. Stocks declining
most those in which there is least public m
terest, chiefly those of highest price, held by in
vestors and banking interests able to be care
less Of passing Observation-Disclosures so con-
sequential that they may hardly be regarded as
disposed to make any particular stand against
bearish assaults Selling OF such stocks for short
account Is consequently a manipulative device
whereby II is always easy 10 score a market sem
sation temporarily-but adventure which sell
dom yields profit TO the seller, so scant fs the
supply of such securities within reach when
short covering is necessitated-as short covering
always must be. Indeed. IT is one Of the recog-
nized luxuries Of the bear ratding game In Wall
Street that high priced investment issues should
be made TO look weak. quotations knocked down
points between sales-it being the professional
theory that such recessions can sometimes bs
made TO affect the general market adversely:
and upon this basis even when such stocks have
to be bought back at a loss. the expense is
charged UP as so much to the account Of maniD-
ulative advertising.
In the present instance. however. there has
been no smashing OF the rest OF the Stock Ex-
change list to any such degree as be con-
sldered TO correspond with the splurg1ng on
slaughts upon gilt edged issues.
Not Of the regulation processes Of bear
campaigning has been omitted this week Rumor
names and credit Of the stanchest houses In
Wall Street banded around reckIessly. Per-
haps some exigencies have been disclosed. some
over-extended accounts crippled and pushed
overheard, some faIsehoods invented and in
ctdental suspicion created with effects in some
quarters actually damaging. 1t can be relied
upon, though, that such instances are relatively
few, relatively unimportant as to financial con-
sequence. relatively insignificant as TO general
nIaIns1 ihuuehee- DinerehI representation IS not
candid but reflects interested speculative COM
mitments Of Over-extended short interests.
Even the most pronounced friends of the
market are not unaware that some discouraging
factors have developed, such friends of the
market do not at all attempt disguise OF what
they so see and feel Avalanches Of new Sc
Curtties do not much help investment sentiment.
Rushing corporation competition to borrow upon
short time notes is not gratifying to people
who have been educated into money market
s,,s,ic{oC Co.. 5jsoIos,,-ae 4bo+ rS7oto1 ~,
vestigatiOns make are not inspiriting. All this
and more-must be recognized. But such
tremendous elements that tower upon the side
of manifest prosperity. Every man and every
corporation In the United States to-day is earn
ing more money than ever before. No need Is
there to marshall the factors Of these Good
Times Universally the evidence looms. Just one
common complaint comes from everyWhere-de-
mand Outruns supply-there is not capacity, nor
labor. nor time enough at disposal anywhere 70
provide adequately what mounting consumption
calls for. Just one thing compasses all-and
that thing is prosperity.
II Ia from this prosperity, and this alone. that
professlonal wan street shrlnls ana shlrks and
shrteks. Maybe common sense Is going out OF
fashion
AS 70 the money market hysteria IS no longer
excusable. The Bank Of England much ao-
claimed when recently its rate advanced. leads
the way in interest rate reduction. and
among the foremost bankers in Wall Street pre-
walls a new impression that concessions will be
coming from lenders instead OF borrowers.
Notably clear In the markets tendencies be-
comes possibility, even probability. thaS m
dustrtal shares may have leadership when Wall
Street begins 20 resume a reasonable attitude
tens are Over-fssuing new securities Is disclosed
the fact that IN very. large proportion the pro-
vision OF track and equipment-inductng
activity and awarding unexaInpled profits TO in
dustrial corporations Unlike the capital issues
or generation ago, which were speculative, the
present capital increase is to meet actually ex-
listing pressing traffic demand
Along with new favor for the Industrials it
Is the opinion OF many conservative interests
that the recent feverishness and weakness of the
railway share list will have the sequel OF matsri-
ally helping we'll managed mining properties into
credit with careful investors. American mining
developments have been SO extraordinary during
the past year that natural attention is COM
manded by mining securities far beyond any re-
cent precedent Not only Wall Street but in
every stock market Of the country (aCtualIy to
the favorable public disposition toward mines
has much expanded Two or three bad incidents
have here and there qualified this popularity
the Ntpissing smash an exceptional Illustration.
OF course. in mining promotion there is Oppor-
tunity for percentage OF misrepresentation and
treachery: there are buncO men and buncO plans
too frequently back OF new mining stock offer
ings. II isn't pleasant, for example. TO see para
graphs like this from a Nevada newspaper:
-Four deputy sheriffs are in charge OF the
Sullivan Mining Trust Company's ONCE at Cold
field"
But none the less what fair observers can
remark In the American mining situation to-day
Is that In the matter of character there have
been tremendous advances for good. Never be-
fore we're there in mining development so many
men Of repute and financial strength. In Wall
Street, . fact. such change has come dis
Identification with mining interests barely a
year ago. such interests now have the open iden-
tifcatiOn and championship OF very fore
most bankers.
AprOpos OF sensational statements teIegraphed
West as the utterances Of a conspicuous Wall
Street authority denoUnctng mining stocks in
there is warrant for a protest.
Ike this from veteran Westerner:
STRESS is laid upon the collapse OF the Com
stock The reference does not prove the critics
case. The mines upon the COmstock shut down
late in the 7Os. but not until the Comstock had
yielded sT0O 900, 900; had steadied the nation
through the great by supplying the bullion
10 meet the interest ON the government bonds;
the real money Of the country. and more. had
supplied the money which had vitalized tha
business and doubled the value Of property from
SkOwhegan. Me-. to San Diego. Cal In six
years in the 7O's one company paid $67. 900 900
another S1S.OO0,O 900; another S21.0OO,
900. OF course, there are some wild CATS but
once a prospect. and II the men who opened Il
had followed pessimistic advice Mr., Guggenhelna
would not have ons foot OF mining ground In ths
world.