New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-03-25
THE WEEK IN WALL STREET.

wholly the result OF NoNSliiiS "iN''
public buying for speculative account oeihs
light while there was no indication OF as
position on the part OF the financers who came
through the panic Of the preceding week ul'
scatbed 10 take more than a theoretical inter
est in the trading There were, or course
transactions for the account Of operators WIZ
worked TO catch quick turns on the long sue -
speculation. and there was a moderate invest
rnent demand for attractive issues which cou'u
be bought To return more than - per cent p"e
the sort of buying that means the beginning %
n sustained advance was entirely RACING no
p,blic was frightened out of the stock market
many months ago. and recent deNclopHie"'S
have not served TO bring it back notwithstand-
ing the fact that quotations are from - TO Z"
points under the high level OF 1906 There Is
still an aggressive bear party in the Street
which meets with little opposition the absence Oh
a strong buying power being due 10 the fac' 'iaI
there are too many crlpples in the Street-opei
ators who we're heavy losers in the recent
crash and whose recovery must necessarily IS
slow Moreover. money market conallohs a.
home and abroad not conducive 10 l"ise
hun movements in securities. while they sug-
gest further liquidation of speculative ac-
counts This liquidation. however is the best
thing that could happen for the money market,
and already its influence is noticeable on loc@'
bank holdings and local money rates
The DEVELOPMENT Of renewed weakness III
stocks last week naturally gave rise 10 rumoFs
that certain houses We're in difficulties not ohy
in New York but I'm London. There were TO
failures though in well Informed quarters II
was common knowledge that more than one con-
Germ had been compelled 10 ask for assistance N
order To meet its obligations. The very lact
that there have been no big failures as result
Of the long period Of liquidation IN securites'
which apparently has not yet run It's course at
tests the remarkable strength of underlying con-
dtions and serves 10 encourage all observers
who look al the situation I'm Wall Street as the
mere development OF the sins OF high finance. OF
over-specuIation on the bull side at a period
when there was not enough money outside the
channels Of trade to support such a speculation
and of operations by the strongest hear party
ever recorded IN the history Of the speculative
community. There is now most naturally much
talk in all quarters OF the probable effect or
current Wall Street conditions upon the country
az large and with the exception OF the element
which has felt the pang Of heavy losses In specu-
lation and the railroad hnanciers whose high
handed methods have been checked by wise
administration at Washington, opinion favors
the theory that the panic OF the spectators VIII
not affect adversely the business world TO an
extent that will upset the country's productive
and MANUFACTURING SIitISlCS AAAO NAe+'4 80 ''--
Street has been wholly a local affair. hut II must
be borne in mind that there has been speculation
in other lines that has exceeded the bounds Of
safety, and that liquidation IN these also must
take place before the current readjustment
comes 10 an end Wall Street IS wholly wrong
In its theory that the campaign started by tho
President Of the United States against corpora
lions that abuse their privileges is responsible
for current conditions The recklessness of high
finance the parting from the paths OF conserNa-
tisrn by railroad managers in declaring large IN
creases in dividends at a time when the physical
position Of their properties required unusual eX-
penditures In order TO handle increasing frame
these dividends being followed by the emission
Of large stock. bond and note issues. the dis
closures OF methods showing the ways OF GER
tain railroad fnanciers. which brought about
loss Of confidence on the part of the public IN
securities and the obstinate refusal Of bull specu-
lators TO recognize that bull campaign accom-
nanied With high rates for money must end In
disaster we're the chief causes Of Wall Streets
so-caIled debacle
The railroads at present cannot borrow money
EXCEPT at high rates. and a consequence
some OF the proposed Improvement work VIII
be postponed until money market conditions are
more favorable. Retrenchment on the part OF
transportation companies naturally will cause
a relaxation IN the tension that has been cur
rent for 30 many months in the iron and steel
market and in other lines but II is not az all
likely that conditions which are bringing about
this retrenchment will continue long enough TO
exert a really adverse influence on general
trade. The railroads will resume work on
projects which have been abandoned Temporal
rily owing TO money market conditions. just as
soon as they are able to secure funds at rea-
tho min 70
that the present readjustment that is under
way in the speculative markets and the
readjustment that must come in the coun-
try's industries TO a Quieter basis will at
no remote time bring down the interest rates
not only IN the United States, but in the for
eign markets 10 a level that win make an at
tractive market for the placing OF railroad
stocks. bonds and notes to secure money 70"
the expansion OF our great transportation bust
ness. Our railroads not going into bank
ruptcy. General trade is not going to the dogs,
and even unfavorable crops this year would not
put out of business. In regard TO the posi-
bility OF crop failure il should be remembered
that the agricultural community will enter the
crop season with enormous supplies
their hands. owing to the record breaking har-
vests Of the last year. And then IT should be
borne I'm mind that the farmers of the coun-
try and they make up a large proportion OF
the population. more prosperous at present
than they ever have been before. Their mort
cages have been paid off. they have money in
the banks and are in a position to lend the
rich East some Of the circulating medium in
these times Of stringency There was a big gain
OF money by the New York banks on opera
tons with the interior last week outsiders send
ing funds here to take advantage of the at
tractive loan quotations