New-York tribune., 1907-11-18
THE WEEK IN WALL STREET.

Some progress was made in the last week
toward the re-establishment OF financial affairs
upon a stronger and safer basis but the situa-
ton still presented many problems containing
elements that suggested the probability of the
passing OF many weeks before healthful re
adjustment could be accomplished. The great
banking powers of New York are handling this
situation in manner that foreShadOWS ultimate
success. but in the time patience and con-
servatsm must be exercised by individuals and
corporations, unjust criticism of methods en-
ployed should be silenced and cooperation on
the part OF the merchant, the fnancier, the
/ farmer, the manufacturer and the politician
should be practised, to the end that the strong
underlying factors again may assert themselves
for the mutual benefit OF the industrial peace
and prosperity OF the land. Time and good
nursing heal the bodily ills, and the same factors
Will cure financial sickness The Sick man gen
orally suffers the consequence of his own in
discretion, and prosperity suffers its setbaCks
from a similar cause but the results of indiscre-
tion do not necessarily mean death TO the human
patient permanent prostraton to finance and
business. Conditions in New York the
mend, and the troubles that are besetting other
centres will disappear in due time if proper
remedies are applied and have chance to neu-
tralize the effects of the financial distemper which
has spread from one city to another. The Coun-
trys business constitution is strong; 1t is backed
by a rich agricultural community, by several
years of general prosperity. by mines of nCai-
in gold from foreign nations and by resources
more varied than possessed by any other nation in
the world Confidence has been temporarily upset
reflected in the vast boarding of money; but
confidence will return, and if the people will
reassert their common sense and return TO tho
channels of trade funds now lying idle the way
soon will be paved for the resumption of nor
NAL conditions. Let the people put their money
where it belongs-that is, in the banks-and the
shylocks who are selling money soon will lose
their trade.
Security values moved under the influence Of
further forced liquidation in the last week. but
that was no more than was 10 be expected in view
Of known conditions. Stocks found buyers.
Some persons apparently believe that current
Wall Street operations are all sales and no pur-
chases, but it should be borne in mind that for
every legitimate sale there is purchase, and
that in times like the present stocks move from
the hands OF the weak to the hands of tho
strong. There are a few persons left who have
the means and the confidence to buy American
securities. and at no remote period it will be
found that the greater number of interest bear
ing stocks and bonds locked up in safe de-
post boxes for investment account, while for
speculative purposes the floating supply will
be made up in great part of non dividend
paying issues. Many shrewd buy
ing the latter class of stocks on the well
founded theory that when the time comes for
a genuine upward movement these shares viii
advance to figures that will more than offset
the amount that may be lost in their non pro
ductiveness as interest yelders The transfer
hooks of all the large railroad and Industrial
companies show an enormous addition of small
accounts Buyers of small lots have been in
evidence and control Of many properties through
stock ownership has been changed in the last
few weeks as a result of the forced selling by
large interests and the distribution of their
holdings among investors of moderate means.
One large railroad company, for instance, which
recently held account on it's books for a
single interest representing more than 10000
shares. reports that this entire block of stock
has been forced the market and distributed
among five hundred new owners. At no distant
time the money market will develop normal con-
ditions, and funds viii then begin to accumulate
in all fiscal institutions to an extent that prac-
tically will bring about plethora Of currency.
A big rise in stocks ought to follow. Stocks
doubtless will go up even If the countrys indus
tries suffer a period of dulness and smaller
profits. Money will not lie idle in the banks
when it can find profitable employment in gilt
edged mortgage issues and first class dividend
paying stocks. Lower quotations may be re-
corded before a real upward movement develops,
but securities are cheap at current figures and
have discounted trade reaction and possible
lower dividends
In the current week a large amount of gold
will arrive from abroad and bankers mdoubted-
ly will make further efforts TO secure additional
amounts of the metal II conditions suggest that
the requirements here demand a continuance of
the movement Already more than s60,00000O
has been engaged. BY the end of the week
large part of this amount will be in the banks ,
of this country and this sum, in connection with
the assistance rendered the banks by the federal
Treasury and the increase in circulation of ma
tional bank notes. ought to be sufficient to re-
store confidence in the monetary situation and
encourage a wholesale return of boarded funds
to the channels OF trade. The money scarcity
has caused the development of retrenchment in
general trade. In the last few weeks it has been
hard work TO secure funds to carry on business. |
steel output and a reduction in working forces
in many lines, but the leaders in finance and
business do not expect a protracted period OF
commercial inactivity. Money affairs in the past
always have recovered quickly from the effects
of panic, and there is reason to suppose that |
the present instance will furnish exception, |
especially the country has a strong break |
water against a tide of acute depression in its !
agricultural wealth and in the fact that intrinsic
conditions affecting the real worth of securities
are sounder than ever before in the history Of |
the country In 1893 there was d world wide |
distrust of our money system, aggravated by the /
fear of free silver, while there fundamental |
unsoundness in conditions governing the nations
Industries. Nothing Of this sort is TO be re- |
corded to-day. Our currency system is on 4 |
solid gold basis. and all ii needs is an elias
ticty that Will accommodate more fully the |
varying needs of trade at the different seasons. |
Currency legislation that will not be followed |
by imitation is desirable and undoubtedly will re-
Ceiye the serious attention of lawmakers. |
Banking reform also is on the schedule, and the !
initial steps taken by Governor Hughes OF this
state should be the means of bringing state !
banks and trust companies 10 the same basis
OF security reserves and a system of reports as
governs our national banking institutions.
Wall Street is going through period of re-