New-York tribune., 1908-10-05
THE WEEK IN WALL STREET.

moved from side OF the account ~ N-N
according to the chances of making Pioll.o
The substantial Wall Street interests were not
factors in the early dealings. except 10 'he eA
tent OF maintaining firm hold on then seou ,4i
ties their attitude. despite election uIicei
and various bear runners, rejecting supreme
confidence in high circles of finance In the cleo
ton of Mr. Taft and in the development of more
favorable trade conditions following the Novem-
Der voting In the last two days OF the week
prices were bid up quite rapidly. wan street
naturally is interested in the political campaign
and 1t would consider the election of Mr. Bryan
most unfortunate for the business interests of
the country. inasmuch as the policies advocated
by the Democratic candidate are economically
unsound and If put into practice meVitably
would result in upsettng the countrys indus
tries Mr. BRYAN may believe that his ideas
are sound but the practical business men know
that they are absolutely wrong. And the bust
ness men of this country do not care for any
experimental work on banking and industrial
lines by party that never has shown Itself
competent TO be trusted with power. The
American bankers at their convention last week
declared against the guarantee of bank deposits
because they knew that the adoption of such a
plan would result in serious disturbance. Mr..
BRYAN wants bank deposits guaranteed. but Mr..
Bryan knows nothing about banking, and he
exhibits great assurance IN his efforts to
vince the voters that his theories must be
placed ahead Of the knowledge and experience
of men who have made banking their business.
II IS unfortunate that some people take Mr.
Bryan seriously.
Stocks are selling a trife uader the best
prices of the summer. but they still are high in
the greater number of instances and more than
discount the return Of prosperity and the cleo
tfon of Mr. Taft. The chance, however. of
lower prices except on passing reactions. does
not appear at all promising. for the good reason
that there is nothing technically weak in mar
ket conditions. There is more stock in in
vestors' boxes than ever before recorded, ac-
cordng to the transfer books of corporations.
and the floating speculative supply is extremely
light. OF course. If anything should happen
that would tend to weaken the intrinsic value
Of securities. as the election of Mr.. Bryan there
doubtless would be heavy investment liquidation
and the establishment Of prices on lower level,
but fortunately. all signs point to Republican
success and a period of industrial growth
greater than any ever before recorded in the
history Of the country Everything in the bust
ness world is sound underneath at present.
Every one is proceeding cautiously and making
no extensive commitments for the future. There
are, however, in many lines large contracts
ready for development contingent upon the
election of Mr. Taft The ease in money rates
reflects an absence of mercantile demand. and
the scarcity OF commercial paper offerings in
diCates dull trade conditions but the large sup
plies of funds laying the foundation for
tremendous industrial expansion. Domestic ex-
change rates do not show any great demand
from the interior this centre for funds. but
an inquiry of greater proportions undoubtedly
viii arise in the near future, as despite the
strong condition Of the out-of-town banks they
are not in a position to finance the harvests
without drawing their balances here. They
already drawing on their New York cor
respondents for funds to meet payments due
the Treasury, the large loss by the local banks
20 the SubTreasury last week being due in
great part to the payment Of drafts in favor Of
the Treasury on the banks that hold out-of-
town deposits
Money is easy the world over. The holdings
Of the Bank of England and of the Bank of
France are tremendous but there is no active
demand from borrowers Paris is getting ready
TO finance new Russian loan and England and
the United States in a position to help if
assistance should be required, though Il is not
at all likely that outsiders, except perhaps Ger
man bankers, will secure a slice Of the Rus
sian issue Money will not remain inactive in
definitely The time will come when there will
be a lively demand for accommodation in all
parts Of the world probably greater in the
United States than in any other country, but
eXorbitant rates for funds appear out Of the
question The fall season generally has wit
messed disturbance in the money market owing
TO the bad features Of the currency system but
IN the current autumn no trouble will develop,
as the banks hold unusual reserves, while they
can If necessary take advantage of the legtsa-
tlon passed by the last session of Congress uer-
mltting the issuance of emergency currency
There viii be practically profit to the banks
III emergency currency, owing to the high tax
imposed, and unless there should be a real
emergency this sort Of circulation will not be
asked for. 1t is to be hoped that Congress at
It's next meeting will reform the currency on
sclenthc and business principles, and in the
mean time the business men and the bankers
ought to get together and agree on some plan
that viii appeal 10 cur lawmakers
Railroad earnings for the closing weeks in
September showed Improvement over the results
Of preceding weeks In the current year. while
the net earnings for August in many instances
encouraging exhibits, as a result Of
reduced operating expenses The practice of
cutting down operating costs If continued would
seriously impair the physical efficiency of tba
railroads, bUt there are many good reasons for
the belief that in the next twelve months the |
pollcy or economy will not be found compulsory /
to such an extent as noted in the last eight
months. All the roads in the country will need |
new rails and rolling stock in the coming
year, and II is likely they will be able 10 take
care Of their needs a result Of better gross
results and ability TO market new securities AZ /
favorable terms. 1t is probable that large /
amount OF new securities will come on the mar |
ket in 1909 for the purpose Of supplying the !
transportation companies with funds 10 carry /
out contemplated improvements including ex- |
tensions and betterments, and the expenditure |
OF money In this manner will be a most i'm |
portant factor In restoring normal times in the |
business world. It will bring large orders TO /
the equipment companies TO the rail mills TO |
bridge builders and TO miscellaneous constr1c- |
tors, while 1t will give employment to thou
SANDS OF men and increase the actual value Of !
investment securities.
There was good demand for first class bonds /
last week and on Friday and Saturday an active /
buI speculation in stocks. led by the Hartman |
shares Rock Island preferred and Reading The |
Dig men appear TO believe that higher prices can
oe MADE on the strong technical position OF the |
market, but it IS NOT likely that much of . rub
lie demand ii develop until after the election !