New-York tribune., 1907-11-04
THE WEEK IN WALL STREET.

brokers and commercial houses began TO change
for the better at the close of the recent panic
week and further progress in that direction was
reported in the last six days of business More
important than anything else were the evidence
Of a return of confidence amcng bank depositors,
the determination of bankers throughout the
country 10 prevent the development Of reckless
speculation, the willingness of the Secretary of
the Treasury to make further deposits with ma
tional banks. despite the fact that the federal
working balance was reduced to low figures; the
ability Of this country to import gold and rne
enormous demand for securities from investors
OF moderate means. The last named factor was
of particular significance, as 1t proved the faith
of the people in the future of the country's busi-
ness. The Improvement that has taken place in
the banking situation does that
era Of bull enthusiasm is about to develop on the
Stock Exchange, nor does it mean that the
troubles that have encompassed the Street viii
not involve TO 4 certain extent the industries Of
the land The position of affairs in Wall Street
IS still serious, but It is being handled with rare
skill by the conservative bankers who have in
mind the good of the whole people rather than
personal enrichment The mushroom financiers
on the run. methods of high finance" have
got 10 go. corporate thevery has received its
death blow and abuses that have served to tie
up capital to the injury of legitimate business
are being eliminated. Great men have come to
the rescue and their plans for the rehabilitation
OF the weakened financial structure will place
the country d stronger and safer basis and
pave the way for a resumption of all financial
and business operations a sane and sound
foundation Public hysteria will disappear and
the amazing resources of this land of ours VIII
occupy the attention of the entire population.
Many innocent persons have suffered as a re-
suit of the financial strngency Fear and dread
have developed in the public mind. owing TO the
disclosures regarding the shameful practices of
certain men holding high places IN the financial
world, but better days are ahead. and If in the
time prudence and canton he
of personal and general business affairs are
exercised the losses and troubles Of the current
unsettled period soon will be forgotten in the
rush of prosperity that will follow time Of
retrenchment and some dull days in the coun-
try's industries. Underlying conditions are in
trinsicaly strong, There is unlike the un-
fortunate days Of the panic Of 1893, no question
about our monetary standard and no fear of
the adoption of unsound financial doctrines
There is no prospect of widespread railroad
bankruptcies or commercial failures. The great
agricultural community is not burdened with
mortgages and has not gone through years Of
poor crops. There is no actual scarcity Of
money in the country, though owing to factors
before mentioned, its at the moment is being
restricted, and there is no reason to suppose
that time of lighter earnings in all lines Of
business VIII create an enormous army Of idle
wage earners The sins of capital are reacting
capital, and overnight milliOnaires who have
accumulated money by reprehensible methods
are the chief sufferers from the recent collapse
The farmers have enjoyed a number Of years
of prosperity, and a result Of the crops of
the last harvest they expect TO receive in the
neighborhood of $1,000 ,000 a sum nine times
large the entire national banking capital
of the country, while the greater number Of
railroads and industrial companies have enjoyed
a period of prosperity that Will enable them to
go through dull times without insolvency. Some
commercial firms have failed and others
doubtless will follow, owing to undue expansion
aT1GiO ho. q of
money in the country-but such failures do not
foreshadow the development OF acute depres-
sion
Further forced liquidation reported IN the
securities market last week and additional SELL
ing of this character appeared inevitable. Many
Wall Street firms, which for months had been
overspeculating for themselves and for their
clients, and with the first appearance Of an
easier tendency in the money market gave evil
dence of an intention to resume such operations
quickly disciplined by the Clearing House.
that institution serving notice that not only ac-
commodation would be refused but that IT would
insist upon radical reduction in the commit
ments OF the houses in question. number Of
houses found themselves in extreme straits, and
IL was only by the smallest margin they were
able to go through the week without making
assignments. The process Of gradual Hquida-
tion undoubtedly will continue, and 1t IS hoped
that by this method the situation will be cleared
without the accompaniment of further banking
failures. The conservative houses did an enor-
nous business in odd Interpretations under one
hundred shares for investment account-in the
last week, and from all indications this move
ment will run on as long as quotations sell at
the current bargain level until the supply OF
capital available becomes exhausted. This buy
ing was not confined TO any class Of stocks.
The entire list shared in the operations even
non-dividend paying issues being taken by peo-
pie who believed a loss in interest money tied
up in such securities would be offset later
bIv no which "a Ira Tloca at
future period. There were large purchases Of
all the standard railroad and Industrial shares.
but not on margin except in cases where buy
ers supplied that almost amounted to the
quoted price of the security. Buyers were found
in large numbers for the United States Steel
shares the report Of the corporation for its last
quarter and the statement Of the chairman OF
the board of directors showing in detail the ex-
act financial position OF the property being ef-
fectve factors in increasing public confidence
in the securities.
From the standpoint of earnings the last quar-
terly report of the big steel concern was the
most favorable ever issued, with the exception
of that for the second quarter Of the present
year. Net earnings in the third quarter were
S43. 04,285 compared with $45,503,705 in the
ond quarter, and though untitled tonnage in the
September quarter less than at the close
Of June, the amount of business hand was
large enough to dispel the idea that the iron and
steel business is going to pieces. Earnings Of
the steel corporation would have TO shrink so
per cent to imperil the dividend on the common
stock. The United States Steel Corporation is
strong in cash resources, and out of earnings
II has appropriated since the first OF the
year S4S000,000 for construction against
$345o0,000 in the corresponding time in the pre-
cedfng year, record that cannot be equalled by
any corporation in the world. A decreased de-
mand for steel rails in the last three months
owing to the pending negotiations between the
rail- manufacturers and the railroads the sug-
gested changes IN the character of rails was re-