New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-04-26

DEVELOPMENT
overwhelming attention is the successful IN
tarno+ionaI fotation of the Pennsylvania Rail-
roads $40 900 900 loan. by the assured safe OF
that amount of forty-year four per cent nonds.
Wall Streets bearish element attempted 10 con-
strue this important event as lnlIlllcal 10 tae
security market. but the security market reiuseo
to respond to such Interpretation Inc same
element also professed establishment at the us
closure" that Pennsylvania could make sucn an
issue offhand. whereas the fact is that II SIM
NV, renresents an output of bonds secured Oy
tho consolidated mortgage of the company
dated JuIv l. 1873, for s10OO00O0o against
which, prior the present issue tnere Is ieS'
than $4,000 600 outstanding
The actual signifcance-the important Sig
nfficance-of this transaction is the PROOF II
affords of the return of confidence in the future
upon the part of greatest railroads. II
means that Pennsylvania is to continue us vast
nIans of deveIopment-is to continue to prepars
for handling increasing trafic-to complete us
New York terminals and in every way Keep
abreast of the times. 1t is fair assumption thae
If this Is the Pennsylvania frame OF MIND Other
great systems do not hold opposite VIEWS and
that much of the pessimistic talk about railroad
troubles has been based on the theories OF pear
operators rather than upon facts
That sensible views prevail is testified 10 by
tho svnpathetic activity, with accompanying
strength in the entire bond hst-relatlve'y
srrpassing the movement in stocks NO heaith-
Tor or more promising tendency could De de-
sired.
Incidentally the foreign end OF the fehhsyi-
vania bond transaction naturdhS ea-i D
date halt 10 gold exports, TO that extent re-
Loving what apprehension had existed as to
the effect upon the money market OF such
exports.
As matter of fact such gold exports as
MA a
weakness but of strength. So abundant are
our resources that the departure of te" Mill
ions of gold does not cause ripple on the
financial wave. New York banks continue TO
accumulate cash in just normal fashion despite
gold shipment, certifying To the Feai' VITA
strength of our monetary POSITION Nheh 'heFe
is a demand upon New York for gold, owing to
r. cordftiou of international exchanges. there
is no effort on the part of New York 10 inter-
nose artificial obstruction TO such movement.
New, York is essentially the free money market
of the world
Rack of all this temporary shifting of actual
gold bars or gold coin is the cheering Iact mat
| from all warrantable progn0StlcS our country
| is entering upon another year OF DouuJiIuI
crops Continuing 70 occupy a cofuIildAI.us
| position as exporters of breadstuhs ana cotton
| TO saw nothing OF exports of nanu1actures-lt
| inevitably follows that there must De coISta
growth of trade balances IN favor OF tnS C.i'v -
States-balances of such huge h8urF9 d -
| render relatively petty the shipments OF a -"
millions of gold or even the greater al$u e tI
| ments of American tourists Gigantic are tn9
| totals which must be paid % this country IN
/ one way or another in settlement OF export
| balances over imports Bearing TINS IN view
II is pueriIe 10 shrink or shuddeT az the sending
| away of a small amount OF gold tIoid WI
| af,Favs nsturtTTv move To where il is most
| needed-and as matters stand IN thlS tp4l'-1
| the sending Of il is proof Of strength not NeaA-
ness. - -,r4 a.
| ports is an inheritance Of the past mere vas
/ a time when such exports meant the compulsory
| collection OF American debts Those no longer
| eyist In the international ledger the United
/ States account is written on the credlt Slqe;
| and is bound to stay there while present "olld
| conditions continue TO prevail
Reference to comparative tables covering ths
| week will show that throughout the whole mar
| ket we have had strength. actually aggressive
| reaching even 10 buoyancy- Standard issues
| have had leadership. And signifying featurs
| showed in the rapid rise in market value for
| MANY stocks upon slight transactions ms
| purchase of a single hundred shares Of sons
| stocks is sufficient to cause an advance OF q
| whole point and more. The consequence that
| is I'm this reflects the fact that IN broad way
| investment securities have become scarce. ara
| no longer being offered by holders, can be OBJ
| tanned only by a material lifting Of bids Long
| ago it was manifest that enforced and entorc-
ible liquidation had reached an end since
| New Years hysteria has been out If market.
Nervousness has ceased to be a quotation MAJ
| ing element. MeduWDlie. Ntch ~ NS'Ae W
have had declarations from almost every cor
| noratfOn quarter atteSting the widening invest
ment disposition of the publlC-every important
| railroad and nearly every consequential III
dustriaI finding stockholders lists TREMENDOUSLY
| expanded. \ single Wall street nrIn : credited
with having bought and taken cut OF me mar
ket since New Years over 1toVpov SiareS q
stocks which in fractional lots, have been trans
| TERED into the names Of owners actual
direct distribution t. a class Of stoc Nhold1rS
who are apart from the professional wan street
| world. and whose attitude toward the MAJ Nsl
| will not be affected BY any OF the teInPoI>tE
ups and downs which may be produced ~
| whimsical raids upon the Stock EXchanSe- IL
| NAV be fairly assumed. indeed IN the event 90
new weakness or financial uncsrttlIlt,e>' nat
these new owners will become further buyers
for this new interest in securities represents al
present prices a very large profit, whether con-
| sidered as aggregate or by way 81 PIT
| Above other elements in this particular fac.
! tor what is best is that this new accession OF
outside investment interests represents me
common sense conclusion of the average ti-Ien
who has money To invest and intelligence u
| know how to use it In the past TINS clement
hut now. having summed up the SITUATION ntN
ing applied the rules OF arithmetic TO prices ana
| corresponding yields. il calmly and SeIsloly
| buvs the securities which professional Wa.
| street has affected deride- Incidentally. anu
fIIustrativeIy the important Stock ENchdIlSs
| failure for d long time disclosed this wees =
credited to commitment upon the snort SUI
Of securities.
| What encourages most observers Of the cur
rent markets course is the strength distrihu-
tion-improvement not being confined 20 any
group or classes of stocks. the substantial al
vances recorded extending throughout the entire
list What moreover. can be reported as addl-
tionaI announcement is that commission houses
for the first time in months have begun this