New-York tribune., 1907-03-24
The Financial World.

Uncertainty. encouragement. depression
these make the record of the Wall Street wee,.
Prices have fallen materially; yet at no tiDa
has there been bad news. DecIines-at timaq
the market becoming almost panicky-have for
explanation M new business disclosure whatso-
ever.
Here and there are recitations OF restriction
Erie, for example, announcing the cancellation %
extensive Improvement plans; but notices OF this
sort are exceptional; there is nowhere any fair
and square declaration that recession and con.
traction are necessary. That Mr.. Hartman is a
member Of the executive board may be to soma
extent explanatory OF tine status there. Some
voluble folks are prcclaln:ing that We are in for
such a period of dulness viii soon have re-
fection in Diminishing material prices and IN
labor restriction. II is difficult though to find
warrant anywhere for such views. The whole
country over activity &2d expansion rule: and
whatever may be Wall Streets passing experf-
eEce Western and Southern developments are
based not upon mere hopes or remote possibfi-
ties-are based Upcn actual. ready. lccaI cash
underwriting And In tais is text for unusual
consideration. National prosperity is in no
sense nor 60 any degree speculative. What IS
real tangible, growing what Is dOminant-re-
fleets the plain. straightforward business sense
of the public interest that asks neither credit nor
favor OF anybody
We hear much Of Over-Yashness In real estate
closest inquiry fails to disclose siguifying weak
ness in the real estate situation, Whether it be-
on long Island, in Philadelphia suburbs in Chi
CagO anneXes or Boston expansion all records
seem TO be within the fair bounds Of conser-
vatiSm. True it is that market values are higher
than formerly; but authorities entitled u conf
dence aver that present bigger prices have ample
waFrant-that there is no overlooking nor real
estate speculative dangers here or at other iTn-
pOrtant points. Whatever may happen in Wall
Street scaHt afflictiNn Is likely 10 come from
the much discussed OVeFtrading in real estate.
There is a phase of the situation which de-
mands Considerat tion-the foreign financial con-
ditiOn. Sharp attention Is called to this by the
advance OF the Bank Of Frances discount rate
to Sla per cent. il having stood at per cent for
years. To US on this side OF the water a 3Ie per
cent discount rate seems low enough but in
French financial circles il is otherwise regarded
actually Is looked upon danger signal
This. in connection with the statement OF the
British Chancellor of the ENchequsr. thar We
are in a period OF wordwide liquidation has
caused a nervous and unsettled feeling in Euro-
pean financial centres, and has undoubtedly
been the impeilinG reason for considerable sales
OF foreign held American securities, While there
is nothing in cur own affairs 70 warrant the be-
lief that the tide ot prosperity has Vet reached
its height, we cannot escape the conclusion that
in the world OF finance we are link IN enc
great Cndlur anu no clafu Il ever stronger lldN
its weakest link. II depression is to come abroad
some UudOinS must appear here.
CurlOuSly enough. the strength of our Owl
financial position is n weakening influence in
London and Paris There Is constant appreheu-
sion that we shall exercise our undOUbted power
70 draw upon European gold reserves in settle-
ment Of Indebtedness 70 America. IL is openly
threatened in London financial circles that IL
gold Iva any quantity is engaged fer shipment 20
New York the Bank of England win raise its
discount rate-an action which always exeTtS
depressing influence Inarketwise. But all this
is beating about the bush our credits abroad
are not phantasmaL but actual II it becomes
necessary TO convert portion of them into
cash. that will undoubtedly be accomplished.
however diSagreeable IL may be % the feelings
OF English and French bankers. But there viii
be arbitrary hasty action; money repre-
sented by American credits will remain abroad
or come here In accordance with the laws Of
supply and demand
our own money market reveals growing ease.
Already the beneficial effects OF the AldTiCh law
being felt. LOanabIe funds In New York are
ample. both on call and for time. at rates which
impose no burden on borrowers. nor is there any
reason TO suppose that these conditions will
change in the near future. Hence, gold imports.
~ made at all, may reasonably be expected 10
be IN moderate volume-and really there seems
10 be no justification for the coy shrinkngs OF
our foreign friends,