New-York tribune., 1907-12-29
The Financial World.
THE TRIBUNE'S FOREIGN NEWS -- -==~

the business paralysis epoch developing in 1ss3
In quotation comparisons with the figures at the
start of the year, current prices reflect declines
which testify to public panic.
Wall Street, it may be true has had In this
sad exhibit representative status-up till this
time Throughout the country there has been
no such dsquietude as the stock market has
shown. Many manufacturers within recent
weeks have reduced output. to going
penses; many mercantile interests have ac-
knowledged some necessities for contraction:
ndustrialy and commercially slower pace be-
gan to be the fashion in the early Fall.
But of actual. positive recession in the countrys
general business there has been until now hardly
enough to occasion worry At the close OF the
year. however. in the stock-taking period. when
comparative appraisaIs are made, when balance
sheets are struck, there is disclosed a nervous
ness which suddenly seems to rush the coun-
try overland, what in varied ways may carry
Significance the threatening element develops
of shorter time and shorter pay for labor. De-
pressing in this regard particularly is the sud-
den aggressiveness of conspicuous railroads.
arbitrary payroll reductions announced over
night
AS against these depressing influences ona
phase of the situation stands out IN bold relief.
The constant and heavy buying of our foodstutfs
port balance of trade and keeps prices for grain
at a level so high that continuing agricultural
prosperity is assured No matter what may
happen in the world of business or finance. tbs
wealth of the American farmer is vastly IN
creased by the sale of the crops Of 1907. This
is not to be lightly overIooked-is an influence
silent, but potent. bound to be felt as sustain-
ing safeguard.
Another relatively cheerful incident Is found
In the fact that when the sixty-days limit I'M
posed by the New York savings banks upon their
customers expired this week there was no rush
10 withdraw deposits. but on the contrary mora
money has since been taken in than paid out
and this despite the fact that the period noted
embraced the Christmas season Surely this IS
clear proof that the people are not in q state
of fright are not desrous of boarding but still
believe in the integrity of their hduciary instt-
tutions- And this plain common sense Is an ex.
ample worthy of following by those men OF
larger means who still papitate with fright at
the condition Of banks and trust companies EVl- o.
IDENTIFY the savings banks have nolnlng 20 1ear'
and when they are sound and strong it IS more
than preSumptive proof that other conservative
depositary institutions not in danger.
IT may be too optimistic. however. TO hasten
10 the conclusion that all enbarrassnlents are
over for the banks. for some of them are bur-
dened with commitments which in the present
crisis are disagreeable. may at any moment
become So however satisfactory these same in
terests might be under conditions that nor
NAL 4 good many gigantic undeTwritings are
not Vet comfortably composed And this fact :
has influence in other quarters than with banks
that are little and weak Among difficult prob
lens some operate outside of Wall Street insti-
turions-one phase Of recent Developments
among ambitious country banks showing in hot
house competition to build UP big deposits
local institutions bidding against savings banks
to accumulate time deposits by paying inter-
est bigger than neighboring savings banks nave
found themselves able 20 allow. The past MS
tory Of policy like this has not been agreeable
Against runs by nervous depositors ordinary
banks do not command the safeguards wn1ch
protect savings institutions. II is difficult 10
counprehend how country banks can with con-
fdencA undertake to pay over per cent upon
deposits TO be rs-loaned in ordinary course
Yet another burdsnsome element for too many
banks reflects the tendency toward over-lnVeSI-
ment in securities With what difHcultieS even
the strongest. most conservative best Informed
financial managers are confronted IN times Oh
market value troubles like thos@ at present pTs
yailing is graphically disclosed IN ne o---CI L
Statements of their condition now oelhS pun
Iished by the trust companies OF me ol4te
market value" and book value not l1ireqieIl
1y- chewing material disparity. Official national
Ia nix statements do not require tnlS Compare
tive exhibit They ought to .+
Rut here comes along intTusively question:
which Is much bestirring the auditors OF super
visng insurance departments-tne curious 1 49,
trine tproduced by exigencleS) BENG adVdLlce- as
that the valuation of insurance company assets
Is really Intended 70 be matter OF accon-
unndating bookkeeping-and, amazing a. IS VIZ
fact there seem actually 20 be some prominent
insurance companies willing 10 Ne4to-Ie sUC
a masquerade. PoliCyholderS VIII not Oe
yrbeedIAd. the public viii not be so decelNeu-
Amalgamated Copper was selling az I-u !edi
AGO. and Yesterdays price was under A. An,
eTicap Smelling was 1S5. yesterday 4 hoFsIed
around 10 New Haven was 1S9, and less Ihdu
49, is now bid for it New YORK tehlrdi tehs 90
above 1884, sand yesterday It approAilltleu -
Pennsylvania from l41 drops over % pollsSSS-
Union Pacific from 1S3 slides down oelcW ~
ard these ars not isolated exhibits. Proper
tionateIv the record runs too much tne sdihe
way. And-regardleSS Of what Insurance. gu
rhorities' may affect to rule-thers Is no my
terry shrouding these facts. nor can there ps
fabricated any public dHlusion touehlng thein-
Uncomfortable any of the ComparauNe HSuIr
be. the comparisons nave Spt to 10 A'0~
Wuch is 10 be said in criticism of the custom
perhaps which ties down the value OF assets I"
the measurement of what may b IN lmneGia.e
price obtainabIe off hand IN IN" pubic hidrketS
that sort of estimate certainly having no idil
appcation to securities not ordinarily deaLt IN:
and oddly enough being Of advdntaSe NOT
unusually stocks and bonds least actutiIS nv
trinSiCally valuable. Common sense dPp4d1S
ment ought to have to do with the income pr,
ducing elements of security us eStdolrS o,
revenue record, its future assurance; and even
ualIy there is bound TO be. OF necesSI,S. ,I5 rii
logical change. To promote such reform NOuiu ~
be public service But such performance dS
is proposed by some nervous tinancerS ana aP
nlauded bv some sylnpat hetiC politicians can 90
no interest good do many interests harIn,s
if official financial statements are t" De ehti'ieu
TO any semblance of confidence whatever
Following the turn Of the year money Market
Improvement may show forcefully-sonle nanA-
ers talk very hopefully. Upon the money mar
ket's drift depends, Of course early security
market tendency.