New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-07-15
THE WEEK IN WALL STREET.

best informed men in the Street, it Will not re-
sumo operations in the future, notwith-
standing the assertion from interests identified
with the movement that the advance which
started with considerable promise two weeks
ago would be resumed It is generally admit
ted in conservative banking houses that cOnd-
tons in Wall Street are distinctly opposed to
active speculation for higher prices. and it is
pointed out that efforts this time to bring
about better quotations through the means OF
aggressive manipulation and public buying of
stocks Will end in disaster. The situation in
Wall Street and the factors influencing the
movement Of prices hear relation To the in
trinsic value Of securities. The actual worth of
stocks and bonds will not be l%sened by the
current scarcity Of money. by the activity
the part of the government in proceeding
against corporations that do not obey the law
or by the attempts OF certain people to create
an American-Japanese war scare. The talk Of
war between this country and Japan, while
wholly unWarranted, may serve to make capt.
tai nervous and TO check financial and other
operations. but IT will hardly reduce the earn
ing power of American railroad and industrial
companies neither VIII the present low reserves
in the banks upset the investment values Of
securities. Action on the part of the govern
ment against the American Tobacco Company
naturally effective influence In encour-
aging 4 bearish demonstration against the
American Tobacco securities. and in fact
against the entire list, while the poor response
70 the Union Pacific and AtchisOn bond offerings
also was an important consideration in shs ping
speculative operations
In the last two weeks three important bond
offerings have practically failed so far as sub
sCrinuons from the public are concerned and
under the present condition of the money mar
ket and the great congestion In the bond mar
ket the chances Of any company floating large
new security issues appear extremely unfavor-
able. Underwriting syndicates are tied up with
a great mass of indigestible stocks and bonds
At the moment there Is not enough capital avail
able in the country to absorb the bonds
which are held by Wall Street syndicates, and
the weakness in bank reserves ought to suggest
10 all concerned the necessity OF bringing TO a
full stop the securities mills. which have been
running overtime in the last six months. Since
January l more new securities have been issued
than in any corresponding period in the history
Of the country. the total output in this time
reaching S1278, 600, 600 Against this Increase
there has been since January l an increase in
the amount OF money in circulation in the coun-
try Of only s48206.643. The amount of new
securities created in the first half Of the current
year represents in dollars nearly one-half of the
entire amount Of money in circulation. but fort
unately indications now point toward a slow
ing up process in the making of issues.
owing to the position OF the money and bond
markets. From the dealers point of view condi-
tons in the local bond market are far from
favorable, and there appears probability of
improvement in the immediate future notwth-
standing the attractive prices at which railway
mortgage and other issues are selling. Weak
ness in Japanese bonds, the light subscriptions
TO the Atchison and Union Pacific offerings and
the lack Of interest in the general market by the
so-called public factors which naturally dis
courage bond issues in the outlook for the i'm
mediate future.
In the money market the demand for accom-
mediation from the mercantile community is
moderately heavy, the requirements of interests
identified with underwriting synd!cates enor-
nous and the demand for gold at Paris con-
unues active Although sterling exchange de-
clined last week under the point At which gold
can be exported at profit more Of the metal
was shipped abroad and in some circles It was
thought further engagements would be made in
the current week II importers were
PEELED to make special inducements IN order to
secure II. Gold exports and the return TO the
Treasury Of government deposits more than Off
set the money the Secretary Of the Treasury is
paying out bond redemptiOns the latter for
some unknown reason being extremely light in
volume despite the fact that interest on the
bonds ceased July . The movement of money
from the interior in the last week was heavily
in favor of New York, due in great part TO
the remittances by banks in other cities 10 their
New York correspondents 70 make good their
credit which drawn upon in connection with
the return to the government Of deposits for the
account Of out-of-town institutions. In a few
weeks money will begin to leave New York for
the interior, and in view Of the current low po-
stion of bank holdings at this centre a period
Of firm rates for funds may be expected with
Strngency later on IN the year. Ihough re-
serves increased last week, they are lower than
ordinarily reported at this period. and the idea
that big bull speculation in stocks can be en-
gineered in the current summer certainly is not
warranted by the position of the loan market
Ruu markets are conducted on borrowed money,
and lust now the Clearing House banks are not
in a position to extend heavy accommodation Tor
speculative purposes. The savings banks have
plenty of money. but their funds are not avail
able for the purposes of Wall Street spectators.
Investors who realize the remarkable strength
of Industrial conditions in this country and
who believe there will be no period of depres-
sion In the course Of the next year are not at all
worried over the abnormal situation in Wall
Street nor do they feel uneasy over the ag
gressive attitude Of the federal administration
toward corporations. Sensible people recognize
the real character and meaning Of the govern
ment's campaign against railroads and other
companies. but the speculative element in Wall
Street which apparently has but a limited rea-
soning power, viii continue to assert that con-
fidence has been impaired by the action Of
President Roosevelt in his determination to
bring the corporations of this country under
federal regulation. There is absolutely indica-
ton of any impairment Of confidence among the
business men OF the United States because of
government proceedings against the corpora
tions. and I'm the general position Of trade there
is not the slightest sign of harmful results from
the administrations active policies Outside Of
Wall Street one appears to be worrying,
while the great mass of the people seem to be
particularly cheerful over the judicious restraint
which is being placed upon concerns that operate
in violation OF the Sherman law and those which
fail TO appreciate the fact that the public Is
active sharer in their business. The Hepburn
rate bill denounced by Wall Street and rail-
road interests before II became a law and the
assertion made that the provisions Of the
terests Of the railroads and that they would
slowly undermine railroad prosperity Since the