New-York tribune., 1908-06-29
THE WEEK IN WALL STREET.


sional element and few commission house
traders who have the nerve and resources 10
make ventures on both sides of speculation, but
the changes in prices resulting from their oper
ations as a rule are unimportant and represent
little bevond the varying moods of q mixed Wall
Street sentiment. In last weeks dealings at
tennis were made on two occasions TO depress
the general list through moderately aggressive
attacks upon the Rock Island and subsidiary
securities and though the movement brought
ont a little stock II failed TO induce general
liouidation genuine holders apparently being
unwilling to part with their issues on the fmsy
arguments of bear manipulators. The hne
work of one OF the old Rock Island crowd was
in evidence at times in the week but no great
success crowned the operation. Sour mlnueu
people who were born without cheer In thelr
hearts. and professional pessimists. whose IDEAS
are based on the desire for profits on the short
side of the market. preached their soulless ser
mons on ruin and destruction for the business
world without attracting any attention from
investors who in many cases are compelieo 10
accent lower dividend returns, and who are tax
ing things as they come with the full reallza-
ton that current conditions cannot be bettered
tv a sacrifice of their possessions. Broad MIND
ed men, like J. Pierpont Morgan, for instance
preached the doctrine of business recovery CIV
ing good reasons for their belief in the coming
were not effective in stimulating a demand for
securities they encouraged the investment COM
rnunity TO maintain tight grip on its holdings
of American railroad and industrial shares and
bonds. AS bad business conditions may be,
there is nothing in the situation that warrants
uneasiness over the future of our industrial
activities Hence there is no sound argument
for liquidation.
Inactivity in speculation, of course, reflects
the unfavorable position of trade and the un-
certainty over the probable duration of business
depression, which in turn involves uncertainty
over dividend payments; 1t reflects unwilling
ness on the part Of money to move into specu-
Iative channels until Ii is convinced Bryan and
his policies will not be indorsed at the polls
and uncertainty over the outcome of the year S
harvests AS far business is concerned, there
are many indications Of the near approach or
better times. Commercial agencies that cover
the industries OF the entire country find that
there has been a break in the stagnation. and
they note confident feeling In all lines of trade
over the future The best argument in favor or
a cheerful sentiment is found in the growing
confidence that the worst is over and that con-
ditions are on the mend, even though they are
moving only slowly in this direction. AS to
politics the conviction is growing daily that
MT Bryan will be nominated and defeated. The
business men Of the country, appreciating, now
ever the surprises often supplied by politics.
doubtless will not be willing to make extensive
commitments at present, tlOuSn tneS ISei tle
chances all in favor of Republican success.
II is not unlikely though that multiplying signs
of a Taft victory and big crops will crystalline
into bull market on the Stock Exchange later
in the campaign. probably In August In the
absence OF genuine support. stock market trad
ers as a rule prefer to operate on the short side
OF speculation. but 1t should be observed in the
present case they do not put out large contracts,
while they appear anxious to cover their opera
tions small profits. Doubtless they realize
that the enormous accumulation of money in the
banks supplies the big" men with a powerful
weapon that may be welded at any time to
round up venturesome shorts while they also
appreciate the fact that stocks are in strong
hands, with little chance OF a material Increase
in the floating supply available for speculative
operations on the down side OF the market.
Money is cheap and dividends more thar carry
stocks.
Bond houses look for increased activity in
mortgage issues at distant time result
of the immense supply of idle money in the
banks and other financial institutions. They
believe there will be a good market for first
class railroad bonds and the bonds of gas COM
panies There have been few instances in this
country of gas companies defaulting on their
interest charges and, as a matter of fact, the
record of this line OF investments is better than
that Of the railroad issues, though people who
have railroad bonds to sell may advise to the
contrary. But the standard railroads offer well
capital, particularly at present when money is
SO cheap and prices OF bonds so low. Bonds.
however have advanced to yield much less than
they did six months ago, and the chances are
this movement will slowly continue probabil-
ity that should encourage purchases at the cur
rent level especially this country shows no
indication OF going bankrupt There is an enor-
nous amount of idle money in the United States
that ought to seek immediate investment in
bonds but unfortunately it is the custom of the
average American investor to let his money lie
unemployed when favorable opportunities for its
investment practically are thrown at him. The
American buyer of stocks and bonds apparently
prefers to buy securities when they are selling
top prices, though in other respects he 1s
after the main chance" The time to buy good
investments is when Wall Street is plunged in
gloom uncertainty and distress Business men
constantly are endeavoring to buy their supplies
at the cheapest possible figures, and the average
man buys everything, except stocks and bonds,
as low as the law allows, yet when an oppor-
tunity comes to invest idle money in securities
of recognized merit bankers, with all their gifted
power Of persuasion based on fact and figures,
are unable to sell their high class wares. Pub
lie investors and spectators generally scramble
into the market when prices have reached the
bean pole level
Currency continues to come to this centre
from the interior. the banks still gain on their
operations with the Sub-Treasury. and new gold
production helps to increase the supply OF
money here. IT is likely the movement of money
will be in favor OF this point until the end Of
August, when the demand for currency in con-
nection with the gathering and marketing of
the crops will turn the tide against this city
In the last five months the local banks have
gained from the interior more than $4,000. 600
and I'm the same time they have lost gold
exports upward of $4,000 600, and than
$50 900 900 government Withdrawals from
depository institutions, but the gain on the in
terror movement, receipts from the government s
excess payments and national bank note
redemption not only have offset all losses, but