New-York tribune., 1907-10-13
The Financial World.

tations so substantial as to make the record a,
the week depressing.
OF news bearing on values we have ha6 v,,
tuaIly nOne-but Of theories, rumors fails,
abundance. Some circulating tales can o,I,
be fairly described as alarming Perhaps No..
of them are true-certainIy most OF them s,a-,
90 be fragrant exaggerations; but what eopr,.
upon the Stock Exchange Is that ths ufsaI
whirled stories are OF such character and corr.
from such sources as to have conseou.,..
enough to challenge Wall Street attention.
Aforetime it has been the fashion Of h...
raiders Of the stock market to invent and ~.
afioat attacks upon the personal intexritv :,
financiers and the credit OF institutfons-h,,
never to any such extent. with any such n,,-
ticularization as has become now th. nit.
fashion. Stock Jobbery Mbels haunt -sexI.s, -
restrictions
Thus they who listen. and as they listen .-.-.
ble. are having sorrowfuI Wall Street tin,ss =.
consequence liquidation on a large scale c,,-
tributes to the making of the weeks narks,-
and the long list OF quotation shrinkagss ta.,,-
fies to the success OF this new campaign 70,
depression.
Actually we have panic. There Is no sn,.a.
ance Of the roaring appurtenances Of 49,
old-fashioned. Upon no one day does III. w.
ket fall into collapse. The fever, ths ,,,,,rI.
the noisy smashes-an IN suddenness-ar. .n.-,
from what now proceeds. But. none IN, I.,,
in every essential particular we have uan,c 80
ditions. are paying panic penalties.
Reason is figuring not at all as marie,
factor. Stocks sold out, and sold Iarg.I-
for reasons that have not one thing 70 Al w,,b
their present worth. their earnings their fncor0a
productiveness. much less their assured sutrr,
appreciation 1t Is the fashion 20 seIl-becausa
1t is the fashion 70 be scared. Courage ha.
oozed out from everywhere Wall Street Ia tust
merely playing the shivering towards game
A feature OF the week materially aiding Iowa.
quotations the sale In our market Of
considerable line of American securities owrss
In Amsterdam. OF course hasty forced selling
of this character must have the immediate re-
suit OF lower quotations. but that II has auv
other depressing influence on American sscuri-
ties is not reasonabIe-on the contrary, II r.
veals that changed condition OF affairs which
is rapidly making New York the peer of Londan
as world financial centre. When trouble arises
anywhere nowadays and there Is urgent demand
for immediate cash the first market turned 70
is New York One reason for this is that Amer
lean securities despite usual or unusual huctu-
ations continue to maintain level so far below
actual asset and earning value that there Is at
reason is that at present New York is the only
place where a free, unrestricted market for
gold exists and where there is abundance of that
metal
While the financial world at large thus reo-
ognizes the strength and Importance OF New
York the rank and file OF Wall Street cling 20
old traditions and fail to grasp what the new
evolution means. And side by side Of these
simply explicable developments-at the very
time when the bear party is fastening TO get
short OF every active stock-railroad reports ara
published revealing marvellous prosperity How
ever much railroad managers may inveigh
against rate laws and what they term govern
mental interference. the plain figures forbid
pessimistic deduction. Notable examples are the
current reports OF Union Pacific. Rock Island
and Atchison- For the last fiscal year Union
Pacific earned over IS per cent on It's stock
after payment OF all fixed charges and preferred
dividends. nor was AtchisOn very far behind
that record. Rock Island could to-day be pay
ing both preferred and common dividends out
OF earnings II It were not adhering 70 the pol
icy OF using its surplus for continuance OF physi-
cal betterments And Erie is just as encourag-
ing IN a real measurement. Nor are these roads
exceptional-they typical.
And under all this prosperous showing Is the
grand fundamental OF another good crop year.
good harvests Of all our staples-not so large
as the year before. but large enough to supply
domestic consumption and leave handsome ex-
port surpluses. The wheat crop enjoys the
favorable position OF being the only good one
this year in the world. Hence, export demand
Is already heavy and nearby options ere ruling
materially above the dollar mark Measured
in money. this years crops yield greater results
than those OF last year.
Thus We have assurance Of continued good
times for railroads. for industries and for the
whole people. Recessions IN general business
will OF course appear-there IS one Just now n
I the steel business-but they can be nothing
more than halting places from which Will 90
resumed the march TO higher levels yet.
Still, as TO many Wall Street standards this
speculative barometer makes discouraging sx-
hibits. Copper trade conditions seem to gro"
worse. Metal prices have fallen further Pro-
ducers show what amounts to decentralization.
And the smelling trust becomes natural tar
get.
In groups OF investment properties there Is
no courage within discovery. Take the mining
industry, in broad way. for test: and any
canvass reveals almost utter decentralization
Even in Nevada. at Goldheld. where phenomenal
production records loom. there is hardly q scin-
tilla OF confidence-even among those who as
experts and with large resources are at the
mines themselves or among those who. repre-
septing vast financial commitments. are here
identified with the foremost properties. Indeed
ii seems almost necessary to apologize now for
even an indirect relationship to the mining IN
duStry-phenomenal has been the intrinsic
value output, stupendous is the tonic m
fiuence OF that output upon every national con-
dillon.
What. unfortunately. seems 70 be the ruhns
IN, in 9TH business