New-York tribune., 1907-09-23
THE WEEK II WALL STREET.

corded in most parts Of the list of railroad ana
industrial securities would run further IN the
next few days particularly as there was olS'lhc'
betterment in monetary conditions II Is ho hot
improbable the quotation for the city 412s VIII
be advanced to 11O. The demand for the issue
is genuine and the movement Of its price does
not. as some people appear 10 believe represent
speculative manipulation. At the close on lhe
week the inquiry for all classes of bonds was
far better than noticed in many months ana
the evidence Of growing activity in this Depart
ment of the investment markets naturally
created more cheerful sentiment in wall
Street quarters while it encouraged the de-
velopment Of cautious buying OF STOCKS AoE d
rise especially in the shares which receluy
were leading targets for professional seiIiIS
pressure, as, for instance, the tlH ana t1d1Ii-
man issues, Reading, the steel securities ana
Amalgamated Copper. The readJustmeht Oh inc
copper market TO the requirements OF the con
s,,n1ers proceeded in a manner that fore
sIadowed the Development in the near future
OF an active buying movement In the metal
and the position Of the trade as reflected Iii
trustworthy reports from the producers ana
users of copper presented no reason lor tIle
continuance of the pessimism that came WIN
the recent somewhat demoralized condition OF
the market The deadlock IN copper IS over
Prices of the metal have been placed on a
basis that will appeal TO consumers who for
many weeks have been out Of the market. owing
to the extravagent quotations that preFaleu
until the cut in quotations was announced 1t
is quite likely copper dividends will be smaller
for time but the prices of the copper shares
have more than discounted the probable re-
ductions. and at the prevailing level the copper
stocks look Ike profitable purchases
1t IS estimated that on reduced output to
the proposed extent OF 80 per cent or the com
pany's normal capacity Aralgarnated on 10 cent
metal could earn more than per cent on its
nbS1Tf
current prices would. It is figured, return some
thing in the neighborhood of 10 per cent, with
the issue on q per cent dividend bxsis- On a
per cent basis the stock would yield above .
per cent, and IN this connection IL may be well
to recall the fact that IN the companys first SIX
months of existence, with copper at an average
price of IL cents, the concern paid in dividends
S31, 10000 and put an immense amount or
money from earnings into improvements on the
property. The companies forming the Analga-
mated Copper combination Will not go out OF
business because Of changed trade conditions,
and stock market 5obbers probably will find
little further profit IN bearing the copper securi-
ties because Of the reduction in prices and the
prospects for lower dividend payments The
price of AmaIganated Copper stock has been
cut In two in the last year, and at its present
quotation buyers who have an eye 10 the future
are active buyers Of the issue. Conservative
operators who taking securities for long
pull are accommodating United States Steel pre-
ferred. the preferred railway equipment shares
the Pacific railway issues, Pacific Coast securi-
ties and many other first class stocks that are
selling under their actual worth but at the
moment there are no indications OF q bull boom
in the market and no signs of a disposition on
the part of the people who have funds 10 en-
courage activity the up side OF speculation
There are fewer bear factors in the situation
than noticed at any time in the last six months
and even tbs possibility Of victory by the gov
ernrr1ent In TIE suit TO dissolve the Standard oil
Company appears to create no alarm in the
financial community, though a few tmld OBJ
servers do predict financial chaos II the final
ruling of the court is against the big oil con-
Germ. The conservative element in the Street
is figuring on slow Improvement IN the stock
market and this view OF the outlook closely
follows conditions that ought TO be the govern
ing influence on the movement of values In the
next few weeks at least.
The decision of the New York Central to
maintain its dividend at per cent at a time
when the company is expending vast sums on
irs property is Of the few factors that are
not liked by careful fnanciers while the same
thing may be said Of the capital expansion
policy Of the New York. New Haven 6 Hart
ford Railroad. The New York Central appears
to be emptying its treasury and paying high
rates for loans TO finance current necessities,
and the New Haven road is adding 10 its capt.
talization without showing any material In
crease IN surplus or in mileage. The methods
of financing employed by various companies,
the unfortunate local traction situation, the tied
up position of interests identified with under
writing syndicates and government proceedings
against corporations that charged with fail
ure to obey the laws are not factors that are
working for general loss IN the intrinsic worth
Of American investment issues, and even as
factors affecting speculative movements they
-
their usefulness as bear weapons. except, of
course, in the case Of the securities Of proper
ties directly affected There few weak spots
IN the business world Views of the men who
have insight OF affairs outside Wall Street
are optimistic over the future Of the cOuntrys
and according TO all the known
movements in the field Of trade and commerce
there will be nothing than healthful
action in the various lines Of work a result
Of the long period OF record breaking pros
perity. There are no signs Of business depres-
sion in railroad earnings and bank clearings.
which foot up big totals.
Though money doubtless will rule at a firm
level for a long time TO come. no scarcity Of
funds for the legitimate purposes of trade is
probable Currency is being shipped to the in
terror in increasing amounts. but this move
ment is not alarming, the money goes to
meet the requirements of business men and the
financing of the years harvests and as the loss
by the local banks viii be Offset by government
deposits. Increasing imports of merchandise
have reduced the country's trade balance to
small figures, and though exports OF foodstuffs
soon will be heavy there is little chance Of I'M
ports of gold this autumn, especially as Europe
viii place every possible barrier IN the way Of
Of the metal to this side of the ocean.
In the month Of August, reported last week
by the Department of Commerce and Labor, the
OF exports Of merchandise over imports
in value TO only S1S33,352, compared
with excess in the same month year ago
of S24.104,453 and S21.s36,957 in 1906 imports
showing increase over August last year of