The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-02-07
A WALL STREET VIEW.

/
market letter from one of the large
New York brokerage concerns affords
some light on the unusual depression Of
stocks there recently. and explains in
detail the factors that have operated to
demoralize prices for the time being.
The announcement of about $780,
| 100000 OF short term notes since the
first of January is not altogether a
welcome development, and. all things
considered, the money market has stood
its additional strain exceptionally well.
These short term issues, Of course.
demonstrate the imperative needs of
the issuing corporations for money.
Fortunately. these borrowers are all
strong concerns. and the notes will be
considered excellent security and, IL
not placed in this vicinity. will find a
fair market abroad. >. Az the same
time. interest rates and the difficulties
Of obtaining money are sure to exer-
else strong restraining influence upon
new enterprises. New ventures and new
improvements will certainly be delayed
as much as possible.
This means a lessened demand for
materials and labor until lower rates
for either warrant a revival of the en-
terprise. 1t would seem. however. that
we are suffering more from unbal-
anced activity than from too much
prosperity. Some industries have been
much more rapidly developed than
others. Initiation has been excessive i'm
certain departments Of our business
machinery, and the great bulk Of the
profits Of industry has gone to organ
lied capital and to organized labor.
Production and distribution have not
proceeded i'm well ordered fashion i'm all
departments of our national life. and
congestion has consequently followed.
What we need is readjustment. and
a toning down of excessive activities.
which have resulted in lifting values to
unreasonable and unstable levels. This
process of SOLDERING or reimbursement
which we are new passing through has
been accomplished by the most natural
Of all forces-a tightening of the purse
strings. We call this liquidation; and
It is doubtful if it has yet run its
course In spite of the recent rally
lower prices are still expected for
stocks. and ere long we may witness
some diminished activity in certain de-
partments Of industry and possibly a
diminution of purchasing abilities-not
IL.
to the SOLDERING effect of reactionary
tendencies"
It is so unusual for a New York
source to concede that organized CAPT.
tai is getting more than its share of
the profits that the letter is quoted at
length. But the accuracy of the dag
nosis generally seems to be doubtful.
Unorganized as we'll as organized la
Dor is getting good wages. but the in
crease in wages has gone largely TO
swell the profits of that organized capt.
tai which monopolizes tariff privileges.
curtails competition, robs the domestic
consumer. waters it's stock and exploits
its monopoly for all there is I'm It. A
good deal of organized capital is earn
ing only fair profits. but the monopo-
lists have for long been getting an un-
fair share and the threat of reform nat
urally affects holders of securities in
the monopolies.
Back Of this, however. and most po-
tent. is the fact that speculation as q
game has lost it's glamour for the lambs
who have gone to the shearing so often
in the Wall street fold. and the invest
ing public Is timid about entrusting its
funds to the sort of trusteeship that ine
wolves the manipulation of trust funds
for speculative purposes.
1t is unlikely the furry in New York
will affect legitimate business for any
length of time, but IL is apt to have a
healthy effect on the whole system of
"high finance"