New-York tribune., 1907-06-02
The Financial World.

week over what the President might have 10
say at Indianapolis Memorial Day Tha
wiseacres and prophets of the curb couturad
alarming visions of the Big Stick
The President spoke. In lucid temperate
language he justified the campaign he has con-
Quoted against corporation abuses annOuncIn.
his determination to proceed upon logical lines
In such effort every right minded citizen VIII
wish him godspeed But Of equal II not great
er. Importance was his championship of tba
rights Of investors to legal protection. Owning
railroad securities is not a crime-the President
recognizes this fact-and reassurine to the rrb
lie mind win be his statement that America,
railroad capitalization is below the actual vaI,a
of properties and assets. The Street was nor
slow to welcome the encouraging import of Mr.
RooseveIt's utterances.
Our security market IS part and parcel of thu
worlds financial system. and must to moro or
less degree be affected by world conditions.
Lord Rothschild very justly points out that dis
turbing movement is afoot: Russia Is in the
throes of actual observation-disclosures confronts
religious and economic crises-England has To
deal with vigorous socialistIc uprising Lord
ROthschid might have gone further-might
have referred to the unsettled condition in ths
Balkan States the disturbances in Central
America the unrest I'm the Far East. All these
are influences more or less potential in ths
financial situation But making due allowances
for all uncertainties how bright Is the contrast
between the United States and the rest Of the
civilized world. Here live under the shield
Of a Constitution which has stood the test OF
time and proved itself sound. Here. when So
ciaIistic other attack IS made upon the rights
Of men or the rights of property. We have courts
of dignity and proven fidelity which guard tns
citizen or the corporation against the danger ot
popular emotion. No other country IS so pro-
tected by fundamental law. The separate and
independent existence Of our executive, Iegfsla-
tive and judicial departments OF government
guarantees the administration of substantial
justice. American investments are the safest
in the world. They can be attacked or har-
assed under the impulse Of ephemeraI crazes,
but they are at all times under the eegis Of the
Constitution and the law; and this must attract
not only home but foreign investment in greater
and greater proportion. for American securities
beyond all question possess more inherent in
tegrity and are less subject 70 deterioration
than any others in the world. Consideration ot
this character may he houted by Wall Street
spectators. but viii not be ignored by IN
vestors.
Only people who are foolish and purblind.
however. viii be committed 10 the theory that
there is any sounding Of retreat in the RoOse-
Welt policy 1t has pleased the phrssemakers 10
call what has taken place a "crusade"-and.
aside from the spirit begetting the epithet the
label IS all right Irrespective Of what may
yet come TO pass, what is accomplished. what
Is established. is inspiriting amply. Abuse "a
eXterminated. dIshonestIes exposed and hageI-
lated. actual embezzling processes turned into
net revenues-exploitatIo Of stockholders con-
verted into dividend funds-such in real meas
urement Is the record Of RooseveItisrn 70 date,
a. f7ry7fr1 Fs
At Indianapolis. with no manner Of doubtful
ness or reservation, the President says 10 tho
investors OF the country that in his program
there is nothing contemplated which proposes
or will excuse imposition upon bona hde owners
of American securities. Actually all that ths
national administration has done IS doing or IL
willing to do. can be resolved into a good faith
guardianship.
And any representation to the contrary IS
either dishonesty or hysteria-cOnes either
from people deceived or from those who aim TO
profit by deceit.
Between the American security market IN its
sane. normal. legitimate phases and the Presi-
dent OF the United States there IS not. and has
not been. even scantest basis for any OF that
Misrepresentation which Wall Street has hippo
drorned so Ions. Said Mr.. Roosevelt at Indian
apolis this week: We have no intention OF
confounding the innocent many and the guilty
AS" " i44-JNS5CN anu pms o-iAS-'-SS u
vengeance"
In the early future Of our stock market It IS
not improbable that dulness win be found for
some time u ruling quality. Technicaly-that
IS adjudged by professional transactions on tho
Stock Exchange-the market IS oversoId. Theirs
IS a big short interest extended in almost
every conspicuous quarter. Winning successes
for months past. the traders OF the Board have
educated themselves into the notion that there
Is little money except IN selling stocks short
but money always in that proceeding. Thus We
have come into the fashion Of selling short as a
sure thing. Members of the Stock Exchange
who hesitate TO buy five hundred shares OF
stock do not regard it as exceptional or az all
unsafe TO sell five thOusand-which they have
10 borrow for delivery. Perhaps this is rational
It's foundation IS that everything American Is
wrong. In this bear philosophy IS involved tire
conclusion that we are this year To lose all our
crops that labor Is to become turbulent that
gold is To rush by tens of millions To Europe.
that we are to have in finance and industry
alike what virtually Will amount 70 anarchy.
Old-fashioned common sense judgments would
he likely to regard this sort of theorizing as not
merely foolish but dangerous. Fair canvass Of
the Wall Street situation however viii maNs
ing doctrine and inspires the Stock Exchange
action that prevails.
1t is only a question Of date when We have
an awakening
The New York Stock Exchange has become a
great bargain counter. Intrinsic values are ig-
nored. In large volume the shares Of railway