New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-03-11
THE WEEK IN WALL STREET.


until last week. This decentralization was con-
fined to prices and speculative accounts, as the
downward movement was marked by a total
absence Of adverse developments in banking
houses connected with the Stock Exchange or
among operators on TIE floor who trade for
themselves. the only instance OF trouble among
Wall Street firms being the suspension Of
small concern connected with the so-called
little bOard"-namely. the Consolidated EX-
change. Losses. of course were heavy among
pools and individuals who were compelled TO
hquidate their accounts, owing 10 the eXhaus-
tion Of their margins and their inability 10
secure further credit. but fortunately these
losses did not extend TO the general public,
which was not an active factor in the dealings.
except on the buying side. where moderate pur-
chases for investment account We're reported.
In many respects the week the Stock Elk
change was without precedent in the history OF
Wall Street Fluctuations in quotations covered
a wide range. daily movements included periods
of some strength and great weakness. at times
the decline was suddenly checked. and all ind-
cations pointed toward permanent turn in the
speculative tide only TO be succeeded by re-
newed selling pressure. in which new low rec
ords for the wear made. One of the
strongest bear parties ever al work in the
Street controlled the course of values and the
fact that its movements brought out an APP
parentIy ineXhausjible supply of stock served 10
discourage support from large banking interests.
who argued thai under such demoralized con-
ditions il was better TO let liquidation its
course than 10 work for higher prices. which
would only attract renewed selling by the
shorts on nearly every day of the week bear
feast was in progress. and the only important
setback to the orgy was furnished by the specu-
10-point rise was engineered against the bear
account on the strength Of the impression that
the control of the Reading property had passed
10 Frick and Hartman interests
Stock market values have reached a level that
suggests purchases for investment account.
First class securities are selling al figures
which DO not represent their actual worth. and
advantage Of this is being taken by some people
who have idle funds their hands while large
banking interests have bought securities on a
scale down merely 10 hold as speculative propo-
stions: but so far there has been no aggressive
support that encourages the idea OF the de-
veopment of old fashioned bull market in
the near future. The time viii come. however.
when the bear forces will ovcrdo their cam
paign. Stocks viii become heavily oversold.
and as a consequence q rally Of no mean pro-
portions viii develop. Such rally may come
y. !
extremely dangerous one for traders who enter
il at this point to sell short in the belief that
there is TO bottom to prices and that the move
ment that has been under way for six
months or more will run on indefinitely And
Yet commission houses fear 10 advise their Gus
toners 10 buy al the current level unless the
stocks are paid for. 1t is not a market for
small margins. despite the great depreciation
that already has taken place, and, though the
temptation may be strong to make ventures
the long side borrowed money the safer
course viii be TO keep out of the Street until
there more indications that the readjust-
ment Of values 10 a lower range has been COM
pleted. The rankest kind Of manipulation was
noticed in the last week, the priests of high
finance Were pessimistic and bearish and by
their talk regarding conditions in the country
affecting the actual worth of securities fright
ened many holders To part with absolutely
sound investments while interests who haxe
been personally affected by the attitude OF fed
eral and state governments toward corporations
preached The doctrine that the nations indus
trial prosperity threatened by our law
makers. a theory which cheerfuIly Endorsed
by traders who were members OF the big bear
army.
And with all the weakness in stocks. the lqu-
dalton and the almost impenetrable gloom that
settled upon the Street. one even after the
most diIigent search could find anything radi-
cay wrong with the industries Of the country.
They found that damage was being done 10
business by government activity in the matter
Of curbing the predatory tendencies Of corpora
lions that the possibility OF the Union Pacific
Railroad being compelled To sell its ownership
Of the Southern Pacific Company meant a coll
lapse Of the railroad industry in this country.
az ,f,,I
action in trade there were railroad reports which
showed decreased net earnings as compared
with the record breaking returns OF year ago
and there were confirmed reports Of retrench-
ment among the railroads IN expense accounts
bearing upon new Improvement work but these
were not signs OF fundamental weakness in the
nations business situation. nor did they fore
shadow the development of q period Of hard
times. The railroads have been moving forward
rapid a pace In their demands upon the
money market: all lines of trade have been in
position approaching oyerstimulation, and
a result of these two factors the none
tary situation has been under strain for
months though fortunately there has been no
disturbance in money of serious proportions the
chief effect of the scarcity Of funds being felt in
the securities markets. in which these condi-
tons have compelled heavy selling of stocks
carried on borrowed funds and among railroads
which have been forced to modify their plans for
improvements and extensions for the current
year \ sensible slowing down in the coun-
try's industrial activities viii serve to stregthen
the foundations OF business in all parts of the
land, and that such operation soon will be
under way is quite evident from the tendencies
in the current situation.
While local bank holdings are not large the
general financial position is strong and the fact
that the United States practically is in control
OF the foreign exchange market should be
taken into consideration in discussing the future