New-York tribune., 1908-08-03
THE WEEK IN WALL STREET.

Although there were few important advances
I'm the last weeks stock market until Friday, tie
undertone was strong throughout. with no lndi-
cation in the character of trading of liquidation
by the substantial speculative and banking IN
ferests who for many weeks have been conouc'-
ing operations for the bull account the Voiuife
of business showed a material contraction aS
compared with the heavy dealings OF the pre-
ceding week. the general course OF tradlhS re-
hecting a disposition on the part or the l1sT'
houses and their important clients 10 let INC
market rest for time. their ATTITUDE ooupuese
being based the somewhat feVer1sh coIul'loiI
Of speculation exhibited on the closing DAYS OF
the week ended July p. The men VINO are
chiefly interested in higher quotations TOT s'othS
are working for gradual appreciation III Pll0e'
rather than for an active bull boom. ana as a
consequences they discourage reckless specuia-
tion by turning on. when needed, the SAFETY
brakes which they control as a result OIL 'heH
rractical ownership of the market Ihey are
the influential factors in speculation because
they hold a good part of the floating supply OF
.+ocl,s while thev are backed by vast financial
resources. and though they believe the outiooh
in the business and political Worlo anu .hV
price of money warrant better quotations lor
securities they are anxious to prevent tne oe
velopment of unsound speculative conditions,
which would hurt the general situation ana
seriously interfere with plans for the notauoh W
new security issues. from the proceeds Oh "'u',l
the railroads will he able TO continue the work
Of physical expansion which was brought TO 4
,,alt nv +i,e overstrained condition or credit III
1907 Stocks are high by comparison WIN the
low prices OF the panic period but naseo on 'ilelr
actual worth investments ana on tle eA-
rellent prospects for the return of normal times
in the countrys industries there are le" ISSUES
that are dear at the prevailing level
In the next twelve months there VIII he many
jrnportant developments among the raiiroaos-
The outlook is particularly Interesting because
of the harmonious relations that have been
established between recently warning interests
and because of the apparent decision on the part
of the men who control the transportation bust
ness in the United States 10 work on lines tnat
will heneft the entire railroad situation WIN
the railroads acting together on the broader
,o1icies that insure success and with their af-
fairs adjusted 10 the provisions of the interstate
commerce laws, the country VIII be oeIter
served and investors incomes Will receive
greater protection Buying of good stocks and
bonds will be encoura aged by the knowledge that
the railroads are at peace with one another
that the Gould Hartman. Hill and Morgan IN
terests are in agreement regarding the financing
snd physical upbuilding of American railroads.
which have been and which will continue to be
such vital factors in the commercial growth or
the nation Mr. Hartman may not go into the
Gould directorate. though he would be welcomed
by Mr.. Gould. but the two men no longer viii
he on opposite sides of the fence. their diff
ferences have been buried Mr.. Hartman and
Mr. Morgan also have forgotten the things that
once made them oppose each other. There is
now a Big -Four I'm the railroad world-nanlely,
Mr. Gould Mr.. Hartman. Mr.. Morgan and Mr.
HHl-all builders Of railroads, all successful
men and all ready to go ahead with plans that
will strengthen the investment position of
American railroad securities. The Erie Rail
road will come out of it's troubles in the course
Of the next twelve months: the Gould properties
Will be placed firrner financial basis, with
the assistance of banking interests that until
the present time have not been favorably dis
posed toward Mr.. Gould and his roads because
of his independent invasion of the supposed ter
ritory of other railroads and other companies
that have not Jared well because Of faults of
management and business depression will see
something more than daylight before this time
next wear. There is even hope for the Chicago
Great Western Some people believe this road
is down and out. but the idea is not well
founded. At no remote time the Chicago Great
Western will become part of another system II
current plans for the rehabilita tion Of the prop
erty carried out
Sentiment in investment and speculative
circles was favoraby impressed i'll the week
by a number of factors which doubtless later
in the season will be more fully reflected in
securities prices. The encouraging progress of
the crops. the showing of the United States
Steel Corporation for the last quarter, and the
signs of improvement in the copper and iron
business were among the encouraging develop
ments that increased confidence in the invest
ment community and led to the speculative pur-
chase of stocks on all declines by people who
supply something more than shoestring mar
Corporation a noteworthy document, for it
presented results April, May and June that
were much better than those recorded in the
first three months OF the year, and after
all deductions, including the regular dividends
showed surplus, the return being made a
basis of from 40 to 80 per of the corpora
tons normal capacity. May earnings increased
over those for April and June earnings
better than those in May while in the first
twenty-f0ur days of July there q large gain
over the month of June, the increase in orders
being equivalent to an increase in the COM
panys capacity to y per cent Of the normal
The Steel Corporation has proved its ability 70
earn dividends in times when il has operated
less than 80 per cent Of its capacity, and its
record in the last six months undoubtedly will
induce a further increase in the number Of its
stockholders. United States Steel preferred is
widely heio by investors. including many people
who cannot afford TO buy more than ten
twenty shares while the common also is more
widely held, as buyers assume that if the COM
pany could maintain its per cent dividend in
the recent hard times there never will be q
period when it will be found necessary to sus-
pend payments.
The local banks and other financial institu-
tions at this centre never before have been in
a better position to for the interior re-
ouirements in connection with s1he gathering
and marketing of the crops. The reserves of
the associated banks are larger than they have
been at this time in any year since 1894, while
there IS now more cash in the city than ever
before reported. The city banks and trust
| panies hold more than one-sixth of the entire
amount OF money in circulation in this country.
and they will be able TO stand a heavy drain
on their resources for mercantile and crop needs
without the development Of stringency in the
money market. Money is easy here and in Lon
| don. Continental centres continue to draw gold
| from the British capital but the movement has
| had no appreclable effect upon English money