New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-06-10
THE FINANCIAL MARKETS.
DULL SPECULATION IN STOCKS, WITH IMPORTING
TENDENCY
Monetary Conditions Sound and No Disturbance Looked Fo-oId
Exports Haze No Effect Money Rates
THE WEEK IN WALL STREET.


Transactions in the securities markets last
week were made up in great part OF the opera
tons Of the professional element. the only i'm
portant commission house business being for the
account of holders of stocks who were COM
PEELED to sell investments in order to raise
money in connection with meeting subscriptions
to underwriting syndicates. Interests who are
participating in the financing of new stocks and
bonds are carrying a heavy burden. on account
of the refusal Of the public to come into the
market. There is no demand from the public for
stocks and bonds except in the case Of small
investors who are placing their surplus funds
in attractive railway and industrial securities.
but it is believed an inquiry for solid issues at
no remote period will develop on a large scale.
owing to the cheap prices at which stocks and
bonds are selling and to the general strength
of conditions underlying intrinsic values. Wall
Street has idea that the country is going To
pieces but outside of Wall Street there Is no
indication Of approaching business distress
There are. however signs of healthful reaction
in trade, and the fact that business men are
proceeding with caution ought TO encourage a
r77or. ontimistic sentiment in financial circles.
In the early part of the week the stock market
moved under the influence of active pressure
from the professional element and forced
LIQUIDATION while subsequent advances repre-
scented nothing more than covering operations
Weakness in the London and Paris markets. the
urgent demand for gold at the French capital
which was reflected in additional Withdrawals of
the metal from London and local markets ana
rumOrs affecting various corporations were
factors that encouraged aggressive transactions
against values on the part of the trading con
-.,l-L xy,stl
poor condition of cotton, indicated in the
government monthly report, and the extremely
unreasonable weather in all parts OF the coun-
try also were factors in depressing prices and
sentiment Fortunately for the owners of Amer
team investment securities, the situation In the
agricultural section Of the country Is not as
bad reported in the Chicago and the New
York grain market and whatever damage has
been done in the farm lands will not upset the
Industrial prosperity Of the nation. Winter
wheat has been injured, and conditions affect
ing spring wheat. and cotton have been
,1nfayorable. and the outlook is not promising
for a large harvest, Nevertheless the farmers,
who contribute so largely TO the Industrial
strength Of the country will not go into bank
ruptoy for the good reason that they have en-
joyed several years of big profits which have
enabled them to strengthen their financial posi-
ton to an extent that will carry them through
a year of lean crops In addition 10 their
strong financial condition they have on hand
large supplies of grain from last years record
breaking harvest, and Il -urpius Will be an
important factor in offss-. The reduction in
the yield OF 1907 Grain .-al cotton undouot-
eddy will sell at high prices in the course Of the
next twelve months, and the increase IN the
price ought to make UP the loss in decreased
harvests. It is argued that high prices will
OH hut conditions are
SO poor that the foreigners will be compelled TO
come into our market irrespective of quotations
for food products and cotton.
Wall Street is suffering from troubles that are
not affecting business conditions In the United
States and current stock market values not
e reflection Of the general business situation.
The best evidence Of Industrial expansion IS
found IN railroad earnings and bank clearings
and it is encouraging to know that the receipts
of the transportation companies are larger than
ever before recorded at this period Of the year.
while bank clearings outside Of New York also
are making new records. The falling off in
clearings at this centre Is due entirely 10 the
reduction in speculative activity on the Stock
Exchange. Net earnings as well as gross earn
ings show Improvement, and the general position
of the railroads does not indorse the theory that
a period Of lower dividends is developing. And
the same thing may be said regarding the in
Gustrial corporations. In the last week the
American Car and Foundry Company advanced
the dividend on its common stock from a TO a
per cent basis, the big profits Of the concern
warrantng this action. This increase in divi-
dends reflects great strength I'm the railway
equipment business, which IN turn reflects the
Industrial prosperity which prevails throughout
the land. The railroads need and
locomotives in order handle the enormous
tic hat al Of hus nd
the increase in the car and foundry dividend
therefore IS most significant of the expansion
that is now under way in our industries Wall
Street has been suffering from the overspecula-
ton Of recent years, from foolish fears regard
ing the attitude of President Roosevelt toward
corporations and from its efforts to brighten
investors into liquidation. 1t has succeeded in
keeping the public out Of the market, but 1t has
not upset the business of the country. The
public is not taking Wall Streets affction seri-
ousIy, and perhaps, 1t is waiting to buy
curities at cheaper prices. The public has not
been injured by the decline. and one Of these
days it viii be found that it Is the biggest owner
Of stocks. Advances in stocks in the latter part
Of the week were due in most instances to COW
ering operations, though there was some quiet
accumulation by Morgan and Rockefeller inter
ests.
Notwithstanding the Paris demand for gold,
monetary conditions in the British capital are
stronger than they at this time a year ago.
and the Withdrawals Of the precious metal for
French account do not threaten to cause disturb
ance in London, while the same thing may be
Gold doubtless will go out until the Paris check
on London advances. The course of the Paris
exchange market Will have to do with the
shipments Of the metal than the position Of