New-York tribune., 1907-08-19
THE WEEK IN WALL STREET.

"TEe great InTODDIIE
stabbed in its v;tals." according to the market
letter Of a large Wall Street house, which ac-
cuses President Roosevelt Of being the cause
Of the slump in prices, but, happily, there are
still few signs of industrial prosperity ard a
little hope that the ''vitaiS' will recover nom
the wound. Millions in dollars have been wiped
out of paper values. but the intrinsic worth OF
securities IS as great to-day as when prices were
selling fifty points higher and the country at
large has not been hurt by the smash in Wall
Street. Investors are receiving much i'll divi-
dends as they did before the decline in Stock
Exchange quotations, and only the foolish hold
ers Of securities argue that lower prices mean
lower dividend and interest disbursements.
Natural causes brought about the March panic,
and the same causes were responsible for the
break last week, the movement being aggravated
by false ideas regarding the attitude Of the ad-
miniStration and indiScreet words by people IN
the financial community and in Washington.
Overextension of credit, overissue OF securities,
overspeculati0n and developments showing rep
rehensible financing IN certain quarters have
been the causes of the long decline in stocks.
and it is absurd for any Wall Street house TO
assert that the efforts Of the administration to
curb the corporations have been responsible for
the serious losses that Wall Street interests have
suffered Many houses say President Roosevelt
IS paralyZing the wheels Of commerce and in the
breath they tell their customers the market
is flooded with good investment bargains the
latter being impossible If the policies OF the ad-
mnistration are tending TO carry our industries
10 a condition OF hopeless chaos There has been
a great amount of intemperate talk in the Street
in the last week. just the sort Of talk that is
likely frighten investors. but, the other
hand, the more conservative houses have sent re-
assuring letters 10 their customers, pointing out
the underlying causes Of the slump in prices and
advising them TO maintain a firm hold Of their
solid investments.
Quotations sold lower than in the March
panic. and the only important support the mar
ket received came from the shorts. the larger
s~90r IL %1,--
they were not in position to extend much help
TO the market. There is in the hands Of many ,
Of the substantial fnanciers a mass Of STUFF
for which there is no market at present and
until these securities can be distributed the
chances of aggressive operations on the part of
prominent banking houses will not be promis-
ing. OF course President Roosevelt is respOn-
sible for the tiedup condition of these bankers,
and for the oVeriSsue of securities at a
time when the money market was in a strained
position. 1t might also be added that the Pres
ident probably is responsible for the advance in
the Bank of Englands rate, the financial troubles
in Egypt and the general position Of financial
affairs abroad which in many respects is SINH
lar to that prevailing here. The whiz Of the big
stick is responsible for worldwide trouble. &C
cording to the wisest men in Wall Street and
may all well lie peacefully down and let
ourselves be battered TO a pulp. Corporation
batting is Wall Streets faVorte expression at
present regarding the administrations policy
toward the railroads and Industrial companies,
nut sober heads In the financial community
not alarmed over the so-called Roosevelt cam
paign against the corporations and they are
endeaVoring 10 discourage the frenZed talk
that is heard in various parts OF the Street, fear
ing that investors actually may become panic
stricken. That tho public, however, is not wor-
Tying the situation is reflected in its will
ingness to buy stocks in small lots There has
been large amount OF this sort Of investment
buying by people of moderate means who have
a little cash handy, and the movement is one OF
the most encouraging developments OF the pres
time.
Securities Of the leading railroad and indus
trial companies are selling at a most attractive
investment level near the low figures of 1903
and from % 10 100 points, and in some cases
more, below the highest quotations Of the last
eight years. AS before stated, this decline does
not represent similar depreciation in actual
worth and for that reason and for the reason that
the country is not going to the dogs stocks and
bonds are bargains at current figures. The de-
cline may go further. There are some observers
who believe liquidation has not its course
and that better buying level viii be recorded.
but the fact remains. nevertheless. that at pres
ent values purchases may be made which will
return the buyer handsome income. 1t is not
likely that an active speculative buying move
nlent will develop in the near future. There are
some who believe there Will be little In the way
of bull movements until after the next Presi-
Dental election and as a consequence of this
idea and Of the scarcity of money the majority
OF professional traders are bears for the long
run. Money is scarce In this country and
abroad for speculative purposes, and business
has grown so rapidly that the supplies in the
banks are relatively small, and high rates for
accommodation are eXacted. There Is not
enough money in the country TO support general
business and active advancing market for
securities at the time, but If there should
be reaction in industries money would be
released and find its way into bonds and
10 relieve the congested condition Of the bond
market There is an urgent inquiry for time
money, but offerings meagre, and result
rates are at the highest level of recent years.
Banks have increased their reserves to a small
extent through reducing loans, and unless gold
exports should develop they viii enter the
period when the demand for money In connec-
ton with the marketing Of crops is heavy in
about as good condition as in the last two years.
while they will have the satisfaction Of knowing
that Secretary Corteyou VIII take steps TO re
lieve any strain.
Sterling exchange in the last week was strong
advancing to within few points Of the gold
port point. and there was some apprehension in
banking circles over the possibility Of resunp-
tion OF the outward movement of the precious
metal The advance in the Bank Of Eng
lands minimum rate CT discount doubt
less was in the nature Of a protective
measure. but soon the institution will be
called upon for gold TO finance the Egyp-
tian crop, and IT may come to pass that
Egypt's necessities viii be met by gold from the
United States. There has been talk in the Street
recently Of q direct shipment of the metal to
Alexandria from New York and such an oper
alton would not be surprising, in view Of the
position of money affairs In London The Egyp-
tan financial situation has been bad for the last
six months, and the failures OF big concerns at
Alexandria and the general business prostration
throughout the country mean that If the cotton
crop is 10 be marketed funds will have to be
sent from tn outside. This country may have
to send the metal, and the course Of the foreign
exchange market in the next few days therefore