New-York tribune., 1907-06-24
THE WEEK IN WALL STREET.


Pacific, in which transactions were moderately
heavy irregular price movement. Most OF
the time quotations varied within fractions, the
course Of values being governed entirely by the
operations of the professional element which
showed no decided sentiment respecting either
side of the market, though at the close there
were more bears than bulls There is nothing
to warrant pessiInism the future of values
Indeed, there are many factors which encourage
the belief that there will be no adverse change
In the actual worth of securities while there is
reason TO suppose that after time substan-
tial upward movement will take place on the
Stock Exchange The floating supply of stocks
available for speculative purposes is not nearly
as large as it was few months ago. Large
amounts OF securities have been taken out of
the market and locked up in investors boxes
and the short interest is considerably extended.
Traders find reason for bearishness in the per-
sistent refusal Of the public TO take an active
part in speculation. This is about the only
pear argument at the present time, unfavor-
able factors have been more than discounted by
the great depreciation that has been recorded in
prices in the last six months. Possible trade
reaction has been discounted the unfaYorable
position or money market affairs abroad has
been fully measured by the securities markets,
and the approach of Presidential year has been
adequately reflected in the course of stock mar
ket quotations.
Affairs in general affecting the intrinsic value
VI stochs and bonds are in sound position.
The crops are improving and promise a far bet
Ter harvest than indicated by the reports Of
few weeks ago. Railroad earnings are enormous
IN al parts OF the country. bank clearings are
heaVy, the iron and steel industry is working
overtime and in all lines a healthful situation
prevails Doubtless in the course of the next
twelve months there will be a reaction in busi-
Thah hos ty,|0
conditions believe it will merely be a slowing
up-a sort of breathing spell-which will be fol-
lowed by renewed and even greater activity
uldn Is now reported. No with ordinary
sense believes the country is about to enter a
perlod or Widespread commercial depression.
fundamental conditions are too sound for such
a development, and Il is not likely the efforts
or spectators to convince the people at large
thet there is TO be a business panic will be sue
cesstuI IN bringing investment stocks on the
market Business mortality is light in pro-
portion TO the number Of individuals and cor
porations doing business in the United States the
chief weak spots being found in places where
expansion has been undertaken on too large n
scale and where working capital has been too
small Notwithstanding the increas seI cost Of
labor and materials and the large amount Of
earnings that is being invested in the proper
Ties, railroad net returns are making favorable
comparisons with the big results at this time a
"N@AA o6oT anu teIc dppedrB 10 De IlttlS prODa-
bility Of any important reductions ia dividends
In the near future The interest and dividend
disbursements that will be made in July will be
heavier than recorded in any corresponding
month and IT is not unlikely some OF this money
Will become available Immediately for reinvest-
ment.
In the bond market no business Of Importance
is being transacted, yet prices OF mortgage
issues are at most attractive level which IN
eVltaoiy Will lead to better demand when
money becomes free to move into the invest
ment markets Just at present the bond market
is clogged because OF the ,nusuaIlv largo mum,
Der Of new issues Of the last year and owing 20
the ACTIVITY OF money in the channels of trade
out by degrees the supply Of apparently in
oigestible securities Will be reduced That the
4eadlng bankers are not worried over the bond
market outlook is reflected in their u,iIlinpness
10 take new issues from the railroads which
need funds in connection with their physical ex
pahslon. These securities eventually will be
lound in investors hands The Rock Island
people nave decided TO put out a Frisco bond
issue TO the amount of S115OOOHOO OF which
SIOoUOOoO will be issued this year More than
Sot,OOO'OOO will be reserved TO take nm under
t;iHs securities and the balance will be sold as
me necessities or the property develop The ST
Louis & San Francisco new bonds will bacoyon
a'tI acllVe investments because OF the security
O@cA OF thefn This security will be the great
@ 1oiIiil.IclaI growth Of the country in the South
west through which thesroad runs The Sou+b
west Is running ahead OF the facilities ~ ~
lailFoads. 1t has grown faster than the trens
@ poI 'deIoh companies have grown. and the latter
'oiipeieh to Increase their rolling stock
ana their trackage to handle tho 80.
"iINi VIII De offered in the future The Rock
!slahd interests in making their recent hond
80 anu IN planning for the requirements of
% iieco system are taking a long range vie,y
- 'i'ualloh' and are not believers in the
'O ~ mouth policy which would take thew
INTO the loan market for ternrora I1 ~
- eouiu nave sold notes, but they Uisel,. do
c4deu 10 take the bull by the horne onG ot
~ o!ice the funds that will satisfy their reoutpa
sLt's lot years to come
The amount of rnonov g., 49, ~
eCIe'lseu IN the last two weeks b,, ebirr,o,t "a
- amounting 10 more than $40 Ot0 600 ga
LII oul"aru u movement Of the metal doubtIass
-. tI oh until checked by an advance IN
money rates. The amount we send ahroa5 80.
VIII be offset by receipts of .old So, NJ"
anu from the production Of the r,,irns a., -
"est, and the fact that the country ,s t,
sehd the metal to Europe without fba de,-aIon
ilieht OF disturbance In the local ananctoI 80
rs rs 40 something Of a bull argument on tho
united States. Moreover in sandir I5
-'le we are helping a strained foreign situa
- iu are easing conditions which otherwise
- r IaFe an ADVERSE effect upon the markets
mere Farls wants gold, so does Iondop Iii
II Is reported Berlin is looking Ionf,r1Ir "iIiio
supply or the precious metal Ruseto 49, 80,
oH Piance Tor funds, and Paris bankers bo1,a
T. - Pio"I'Seo 10 finance a Japanese loan
,,r.+'ol clal conditions are somewhat
9'eauy' o. ana one large bank at AIexapdr,o
!aiied !e last week AS consequence OF the Ee,,r-
II JIah situation London has to send gold 70 Tho
East @East, yet the Bank Of England is IN sonn6
ana British bankers are not alarmed
'houEh they are taking the nrecou.to - - 80
curing gold in New York and are anrio,,a ,,- % Sc
70 get II to pay the interest on the metal ybiIa
IN IN transit There is no reason whv the Ronl, ~,
france reea ana the Bank OF England should NOT
Irr,to, S+ate nus 10 attract gold from the