New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-04-08
THE WEEK IN WALL STREET.


fact that this advance has been brought about
chiefly az the expense OF the short interest con-
siderable speculation is being INDUCED in re-
garding the probability of further appreciation
IN the course OF the next few weeks. While
there was evidence last week OF Broader de-
mand from the public there was not, however
a buying power from this source large enough
to sustain an active bull movement without
the help Of purchases for the short account. nor
was there any indication that the generally IA
vorable developments affecting money and
stocks would lead TO an immediate expansion in
the commission house inquiry except in the case
of actual investment purchases. Advocates of
higher prices however, saw in conditions affect
ing real values and speculative considerations
reason for encouragement over the theory that
the so-called outside element with little judi
cious prodding in the shape of bullish utterances
by brokers. soon would be buying securities on
margin. owing to the attractive level at which
most shares were selling and to the promise of
substantial profits held out to them by operators
who carry stocks accumulated the recent
breaks for sale at higher quotations. Many ex-
cellent arguments exist for the investment Of
funds in sound railroad and industrial securities
at present prices. Real values have not been in
jured by the long period of depression on the
Stock Exchange, conditions governing dividend
returns are as strong to-day. If not stronger,
than they were six months ago. first class shares
and railway mortgage issues are quoted at fig
ures which make handsome investment returns.
and there is nothing in the outlook that war
rants other than favorable predictions regarding
the movement of affairs in the next twelve
months underlying the investment markets.
Though there are good reasons for the pur-
chase Of stocks as investments. at the same time
41,ar Ia
lative position which will prevent sustained
upward movement. In the present instance it
should be borne in mind that the strength so
far shown in quotations has been due TO techni-
cal conditions, and that with the elimination Of
these conditions the way may be opened for
further aggressive operations on the short side
of the market by an element which has ac
cumulated large profits as result of the decline
of recent weeks. Whether or not this element
will again take an active stand in favor Of lower
quotations no observer at this juncture is able
10 figure out despite the fact that there has been
such a striking change in the situation in money
and so much evidence that fundamental condi-
tons are sound, the future attitude OF these
traders doubtless depending TO a great extent
upon the amount of public interest commission
houses are able 10 arouse and the disposition Of
the larger financial interests toward the market.
As the latter have in mind operations the sue
cess of which depends in great measure on
q strong market for securities it may be as
sumed that they will exercise their talents
the bull side: but their resources are not without
limit and as they have been under a heavy
strain in the last six months, especially in the
last few weeks. in preventing wholesale Wall
Street bankruptcy, their power in itself may not
be great enough to prevent the recurrence of
bargain day on the Stock Exchange, though it
appears quite certain that with the additional
funds now at their disposal a result Of the
large deposits Of government money in the banks
they are In a position to maintain sembance
of order in the course OF speculative values. not
manipulation by the gambling
coterie
There is much uncertainty in the minds OF all
Wall Street men over the immediate movement
of prices Conflicting views are held and the
Street by no means is working as unit Hence
it may be wise for the outsider to observe un-
usual caution at this time in contemplated mar
ket operations. remembering that jealousy
among large financial and railroad interests has
not been put aside, that warning factions that
may kill themselves and the public. too IL the
public is not prudent still live in Wall Street
and that the time is not far distant when un-
the crops and politics viii furnish
bear traders with ammunition, Of which there is
Just at present somewhat scant supply. On
the surface the developments Of the last week
were encoura ring TO traders who have stocks
which they are anxious to sell at higher prices.
and FROM the investment point OF view every
thing in developments affecting intrinsic values
suggested the purchase OF dividend paying
stocks and interest bearing bonds. And that
these conditions appealed TO people with avail
able funds reflected IN the increased invest /
nent purchases, in the Improvement in the
price Of railway mortgage issues, and in short
time railway notes the only unfavorable factor
in connection with investment properties being
the severe terms Imposed upon the Erie in its
Of money TO be used for the payment
Of notes soon maturing 3. The high rates paid
by the Erie for accommodation and the fact that
the loan more IN the nature Of a commercial
paper obligation suggested TO some observers
that the money market not as easy as rep
resented by the rates for call loans, but the
chances are that the lenders were Influenced
more by the condition Of the Erie than by the
situation. The conclusion should not
be drawn that the Erie company is not sound
The road has been adversely affected by factors
Which VIII not upset its earning power. and
though 1t is not in position to dictate terms IN
borrowing money its credit. is safe and when
the needed expenditures on the property have
been completed It viii be able to handle econonn-
ically and at good profits the heavy traffic which
must come to the road, owing 70 fits favorable
location as Chicago-New York trunk line.
Government mediation trumphed last week
in the Western railroad trouble and yet there
are some Wall Street interests who do not be-
heve that the government should concern itself
with the affairs Of corporations II It had not
been for goVernment Interference" which. bv
the way. was asked for by the railroads, the
country would have witnessed one of the biggest
railroad strikes ia the history Of American