New-York tribune., 1907-05-27
THE WEEK IN WALL STREET.


market value Of securities in the last few weeks
do not represent a corresponding decrease in
the actual worth of the issued investments.
Some timiG people may believe that the current
sagging in Stock Exchange quotations reflects
a decline in the real value of shares and bonds
and they may be pardoned for such an idea "a
every effort is being made in certain speculative
quarters to convince the owners of solid Amer
lean investment securities that the time has
arrived for the sale of such holdings and the
tying up of funds in stockings and bureau
drawers. Speculative interests who make their
living by playing the fears OF other people,
spectators who take advantage of the financial
difficulties of their quondam friends and Wall
Street pools that are made up of operators who
are in the habit of using reprehensible methods
to bring success to their transactions are bears
on stocks and they expect to bring about a price
level that will make Chicago & Northwestern
appear dear at par. Union Pacific under par.
New York Central at 20. Great Northern at 80.
Reading at so, and Steel common a minus
quantity practically are the points aimed for If
one can place any faith in the talk of the leaders
of the bear operations Criminal efforts to de-
stroy the reputation of the Brooklyn Rapid
Transits credit We're made a few years ago
and the stock rigging individual at the head of
the movement sent to prison. 1t is most
unfortunate something cannot be done at the
present time in the way of criminal procedure
against the Rob Roys and Dick Turpns who are
working to relieve investors of their money by
soaring them into liquidation. People who own .
American investment securities should maintain
a firm grip on their possessions. These securi-
Ties IN most instances worth more to-day
than ever before in the history Of the country.
fI,a,
has been at this time in the last few preceding
years
1t is generally admitted that there has been a |
certain amount OF damage to the winter wheat |
crop and that spring seeding has been backward; |
II is thought there will be a heathful reaction |
IN business in the course Of the next few months
ana IL Is believed that the approach of the Pres
4oehtlal year will serve 10 check 10 some extent
new business enterprises but none Of these fac |
tors possess elements that warrant the develop |
ment of a pessimistic view OF the future of in |
Vestment values. Speculative values may go |
lower out at current quotations good opportuni-
ties are offering for the accumulation Of securi-
Ties that will make handsome returns TO the |
buyers Good railroad stocks may be secured to |
yleId from to per cent, while preferred in |
dustrlal issues are selling at figures that bring |
lhe investor from + to I per cent. and both in !
the case Of the railroads and the industrial COM
pahles there is no reason to suppose that there !
VIII be any change from present dividend dis /
pursements, except in a few issues which are !
anected by conditions that are not general The |
course Of most stocks would indicate to the igno-
rant observer the approach of a dividend reduc- |
ton and dividend passing period, and the mac |
uvity of the bond market might suggest 70 tho !
same observer the theory that there no longer |
IS any investment demand in this country but |
poth conclusions would be wrong, as conditions |
not dependent upon the business and financial !
IN the country rather than falling off
IN earnings OF our corporations are responsible |
Tor the low prices at which shares are selling |
ana the stagnant position of the bond market |
The latter is congested with new issues. and |
people who have money TO invest prefer at pres |
ent TO place it in high grade stocks rather than |
mortgage issues. owing to the more attractive |
yield that can be secured from the first named |
Powerful bear spectators are taking advan- |
tage Of the various passing and superficial ad- f.,
verse factors TO hammer prices all opportuni- |
ties, and the crippled condition of many inter- |
ests who were hurt in the March break and the |
absence Of public demand make 1t easy for them |
to carry the market along their favorite lines |
Last week there was large amount of genuine |
liquidation, representing forced sales by people |
who no longer were able to support their ac-
counts. and in many cases accounts that had
been helped over the March panic came upon |
the market at prices no better than those record
ed In the slump of the early spring. Indeed in
some instances quotations went under the low
figures Of March IL Many speculative accounts
have been in process of liquidation ever since
that time, but it only last week the trad !
ing element appeared to wake to the fact that
such selling under way, but then they lost
no time in making old fashioned onslaught
upon the market. their operations being helped
oy the appearance OF new borrowing oDeratiops
by corporations and by a renewal of tariff agi-
ation. The course OF the wheat market also
furnished powerful argument for the bear cam
Daign stocks, but fortunately the actual posi-
ion OF the wheat crop. viewed by unpreju-
1iced observers, was reported far better than
indicated by the movement of wheat and secu-
titles. 1t is too early to govern ones ideas on
crop killing theories. Corn is not even yet in
he ground and II is not Impossible for the loss
II winter wheat to be offset by gain in other
cereals, and it is quite probable that a good
part Of the acreage lost in the winter wheat
ieds will be planted to corn. The farmers are
strong in financial resources. and the country at
arge is in a better position to meet crop dis
ister than ever before known 1t may be we'll
o bear in mind that last year there We're record
breaking haryests. and that the current season
opens with unusually large supplies left over
rom 1906.
Rates for call loans remain easy while there
has been slight hardening in the time depart
nent of the market. With call money in abun-
lance at 212 per cent and the banks unable to
place large amounts either on call or time
here is no reason for uneasiness over the money
market outlook. The banks would welcome
higher rates and the fact that corporations
which are putting out short term notes are
compelled to pay stiff price for this special
accommodation does not reflect yeaLness in Tho