New-York tribune., 1908-03-08
The Financial World.

promise even to be iasting-if new factor,
urging depression be disclosed. Advances ~
two and three points were not exceptional. Som.
stocks went up materially more.
In quarters having exceptional opportunitis.
for knowledge there prevails the belief that th.,
quickening Of the security market is In SOM.
way related 20 and reflective Of accomplishment.
with which the arrival Of Mr.. J. p. Morgan IN
London has 20 do. Whatever may be the view
on the curb they who have most eonsequere.
in the American financial world not inclined
20 any theory which explains Mr. Morgan's
Transatlantic voyage as one merely for pleasure
or recreation; Ire has had recently to confront
too many serious problems-not few OF them
international in their scope-and he is COM
mitted definitely 10 broad restorative plans
to accept any idling programs. What can result
in the way of actual national benefits from this
present trip abroad may. indeed. be in time
disclosed as entitled to rank with even ths
greatest victories OF his splendid career.
In analysis or even superficial consideration Of
the American business situation one factor looms
sfenificantIy-the international balances OF
trade running now in favor OF this country al
the rate Of 500, 100000 a year. True enough
il is that Europe has sent over 70 US s1OO.O000o9
in goId-and the Viseacres OF Wall Street have
been much proclaimfng that this gold influx
was only the borrowing Of money abroad-bus
the extraordinary OverpIusage Of cur exports.
attended by an import shrinkage tbat Is pha-
nomenaI sets wholly at naught every pessi-
rnistic argument The gold took belonged
to us In its utmost volume it represents actu-
ally only fraction OF what our current years
credit balances mount TO-
While it is foolish for anybody 70 affect to
believe that hard times are confined 70 Wall
Street il is none the less probably well within
bounds to estimate that New York has been
the most acute sufferer from panic conditions,
and is most embarrassed by panic sequels-New
York becoming in fact, virtually a clearing
house for the rest Of the country.s troubles
For weeks past We have been entertained
with bulletins of the arrival OF buyers from
out of town, every branch OF mercantile trade
represented. Yet canvass of Wholesalers and
jobbers seems 10 indicate that this influx Of
purchasing agents has this year been chiefly
social function-reIativeIy little buying done
At the same time il seems pOpUlar4y % De ac-
ceDted that store shelves throughout the e0ul-
try are empty. scant stocks of goods anywhere
on hand Manufacturers show similar condi-
ttons stocks on hand smaller in volume than
any past seasons average Prudence policies
have ruled universally.
Ordinary normal consumption cannot fail to
induce changes in this reGard-fOTce them But
uniform testimony from both the manufacturer
and the seller of goods is 70 the effect that the
country's call for materials has not YET
shown any substantial recovery from the sudden
and tremendous cutoff put into effect months
ago The curative policy prescribed Dy John
w Gates seems 10 have been very seneraly
accented irving 10 overcome hard times by
wearing last years clothes Economy prae-
tices. all over the land. are not apparent mere
that rest which Mr.. Rockefeller last tan
thought the country was entitled to- In tns
experience are some things other tnan IN
aduIterated joy: but the ultimate result wl1'
of course. do large broad good
CoincidentaIly, securities pressed far down
below intrinsic vaIue-the New YORK STOCK
Exchange turned into bargain counIer-1or
it is to be borne in mind that among currenr
developments none is clearer shown than that
Wall Street has become Just as bare OF stocks
and bonds-its goods-as the manufacturers
and merchants are OF linen. silks and calicoes-
Ordinary consumption" in the security maTkes
is as much lacking as in the store or the fac
tory Return to normal conditions in the ner-
camille and industrial world will probably not
be- in the end. any more pronounced than SIM
liar return to what is natural among investors.
Recent news developments have included
Of banking complications have been discomfort
ing In the railway world discourasing factors
have figured. Another Gould property has gone
into receivership, gossips induIging in grew
some comment and predictions to what may
follow Actually the disclosure seems 10 attest
that the Gould name still stands for fighting
capacity. Vanities permitted 20 benurnb
seIf-prOtective faculties.
Perhaps in some other railroad quarters Ike
policy may be adopted. In the South certainly
and at the North probably there Will in some
instances have TO be staIwart handling o. ex-
igencies.
Railway earnings stay bad Pennsylvania
shrinkage New Haven's plight New York Cen
trails sorry situation. AJchison's deplorable ex-
hibits-such representations can dispirit any
observer who considers chiefly what is irrnas-
diate. To broader minds. 10 students who can
see beyond day month Cor the year, there
Will come less despOndency- Even bittersst
critics do not suggest that our corporations are
in the hands Of iuccmpetentS. Problems 90
have 70 be faced-but they can also be solved
Present conditions not new in any uniqus-
ness. The last generation had 10 meet snd
overcome similar adversitics-aud this Eener-
alton is not deteriorated either in ability or in
courage Here is where Wall Street prophets
join issue. They who base views and expecta-
tion upon what is disclosed right az hand is-
noriug all but day by-day developments. are
cheerless-and for a long time such have con-
stttuted Wall Streets preponderatins army
In the stock market during recent months they
have dominated Yet little else have they sc-
c0mplished, even by desperate market raids.
than To keep optimism in check. keep Stock
Exchange prices benuu1bed.
one new element there is in the situation Of
rh