New-York tribune., 1907-04-29
THE WEEK IN WALL STREET.

York. London. Paris and Berlin are extremely
light IN volume at present. without the prospect
OF an immediate change in the direction OF
greater activity. The utmost caution Is ex-
hibited by speculators who make their hV1ns
by trading In stocks for their own account OS
brokers who buy and sell for other people ana
by the public which at times Is such an I'M
portant factor in shaping the course OF prices
The conservative attitude presented IN the flhah-
cial and speculative communities does not re-
feet uneasiness on the part Of financlers anu
speculators over the outlook in the business
world. nor does It suggest any lack or cohhuehoo
fn present financial and political cohulu"HS
throughout the world. In industr1al clrC4es q
similar cautious disposition is noticed. Caution
in business operations represents common SENSE
and the common sense OF the business and imam
cial interests OF the country suggests slowing
down process in business and speculation after
the recent long period Of excessive stimulation
IN all lines OF trade and the unWyise speculative
movement in stocks. real estate and other hnes
which In the case of stocks eliminated IN the
March panic. Everything has been running at
fever heat. Speculation in securities. new rail-
road building that required enormous loans' eA-
tensIve operations in the realty market ana hish
prices in all departments OF trade and commerce
imposed q severe burden upon the money market
for many months, not only in the United States
but in foreign countries as WELL and as conse-
Quence money rebelled. with the result OF forced
liquidation in stocks and the checking OF extra
ordinary expenses by transportation companies.
the latter being unwarrantedly ascribed by some
interests as due 20 fear on the part OF capital
because Of the policies Of the Washington ad-
ministration.
The oP in
the general situation from disaster. The coll
lapse in stock market speculation sounded the
warning for more conservatism IN all depart
ments of trade, and the fact that this warning
has been needed insures the stability of our
and foreshadows the maintenance OF
a profitable business throughout the country's
varied activities The money market needed
rest, and it got It. AS a result. normal condi-
tions have developed in the money market at
this centre Improvement is taking place at
other important financial centres in the United
States, while similar readjustment IS going on
in London and the Continental capitals. The
early beginning Of the Presidential campaign.
the uncertainty over the years harvests and
the unreasonable legislation by some states af-
Secting corporations of course. are factors tend
Ing to promote inactivity in the stock market.
but there appears to be no doubt in the minds
o
ton underlying the position Of securities is
moving in a manner calculated 10 conserve the
vested rights OF our people. Bond houses which
have the opportunity to Judge the trend of sem
timent in financial and business circles through
out the land report that they are unable 70 find
NV impairment of confidence in the outlook
for the continuance of industrial prosperity
though they do see signs OF healthful reaction
and a disposition on the part Of the leaders OF
finance and the captains OF industry 20 proceed
With prudence in all operations involving the
use Of money While there is no activity in the
bond market dealers are not apprehensive OF the
future believing that Just soon as money
eases to a greater extent at interior points there
Will be better demand for mortgage issues.
The time certainly will come when there Will
be an active inquiry for American railroad
bonds and the period also will arrive when the
railroads will be able TO raise money for extern
sion and improvement work new stock and
bond issues with much as they enjoyed
before the market became overcrowded with
securities Of this character.
Recent bond and stock issues are still in prog
ess OF digestion. and while the chances and
will not be ripe for the issuance of
lew securities OF this kind in volume for some
ime TO come, II need not be assumed that the
and industrial companies in this coun-
~ have reached stage IN their development
where IL will be impossible TO count upon fur
her expansion in their bonded Indebtedness or
IN increase in their capital stock The United
states win continue 70 grow rich through the de-
Of its mines and its manufactures and
through its large crops and its ability 20 sell its
goods in all parts OF the world And the rail-
'oads will expand in proportion to the cOuntry's
needs. despite the dismal predictions made by
'earsome observers that our Industries are about
% be strangle1 by our lawmakers. Valuation Of
-ailroad properties by state legislatures that
know nothing about the subject. or leg1slR-
ton that interferes with legitimate bust
ness, or any law that works harm 20 our In
lustries win not live long enough 10 do any
damage. The people of tho United States are
not FOOLS and their might and power strong
enough 20 see that their interests are protected
And the fact that the people believe in fair play
and the conduct OF business lines Of hon
ssty and in the interests OF both the producers
and the consumers means that laws seeking TO
regulate corporations TO the end that the rail-
roads and the shippers the sellers and the buy
ers shall receive equal protection will be placed
on the statute books of the nation This is
what President Roosevelts ideas amount TO.
They present nothing inimical 20 the value OF
Investment securities.
Bank conditions are sound throughout the
country. Money is easing at interior points, but
II IS still above the level prevailing in New York.
and the chances therefore are that this centre
will continue 20 ship currency to out OF town
points for a number OF weeks to come in con-
nection with the spring trade and the require
ments OF the farmers. Now that the govern
ment is in position 10 return TO the channels
Of trade funds paid over customs account,
there is no fear OF high money IN the near fut-
ure; indeed. in banking circles the theory was