New-York tribune., 1908-07-20
THE WEEK IN WALL STREET.

In last weeks stock market prices OF many
issues made new high records for the year while
the average for the leading railroad end IN
dustrial issues only fractionally under the
best points made in May, when the greater
number OF securities sold at the dearest hgures
reported in twelve months Efforts to depress
values have not met with much success Ihe
floating supply OF stock is not large. securities as
rule are strongly held and money IS easy
enough TO encourage the maintenance OF po-
sition on the long side Of speculation. The
more important banking interests are espouseo
to the bull account though they 90 not do'iso
the purchase of stocks on small margins, IN spite
of the strength of technical conditions invest
ment buying is increasing especially Tor foreign
account a reflection of the latter being pre-
sented last week in the large amount OF eA-
change that was drawn against European pur-
chases Of American bonds. One house alone put
out upward of 100000 exchange Ii Is uh-
6erstood that this movement VIII run on. aS
foreign interests are convinced that condluons
in this country are on the mend and that our
attractive railway mortgage issues are selllng
of bargain nrices Financial and industrial
conditions continue to show steady and health
full improvement. and the advances that alreauy
have taken place in securities values is Wall
Streets response to the indications OF better
times ahead. Business is quiet ana Tar unoer
the volume recorded at this time year ago, OUT
it has enjoyed marked change IN the last rev
weeks with every promise of developing INTO
something of a boom in the course of the next
year. Notwithstanding the pessimistic views that
are put forth by few railroad men, VINO sun
persist In taking the position that freight rates
should be advanced at once otherwise ralirodo
bankruptcy will follow
Mr. McCrea president of the Pennsylvania
says this is not an opportune time FOR an an
vance in freight rates and he is supported III
his statement by economic principles and COM
mon sense The railroads enjoyed prosperity
before the panic OF the present schedule of
cha and 1xha times return
in the business world they again will make new
records In the matter of earnings In the last
calendar year the freight earnings of the
American railroads amounted to s1.S25,o0o.ooo.
and as it is proposed by certain railroad men to
advance freight rates 10 per cent the revenues
would be enormously increased just at time
when all indications point to a normal gain in
earnings as a result of returning industrial ac-
tivity Already the number of idle cars is
smaller showing that earnings are about to eX-
pand Moreover. the railroads have studied
and perfected system of economies by Whlch
expenses have been materially reduced and this
alone will be important factor in future net
returns OF course, If ii were to be assumed
that current traffic conditions. rather. those
which are reflected in the last reports of month
" earnings. were to continue the transportation
companies would drift into serious hole. but
there is no reason to suppose that traffic re-
ceipts will rule at the level established in the
recent past: indeed. every consideration and
known factor in the situation points the other
way It has been suggested that q temporary
advance might be made, but if the rates once
put up they would stay up unless the IN
terstate Commerce Commission should inter-
vene The railroad companies should bear IN
mind that there will be heavy grain and cot
ton traffic this year: also that the output OF
manufacturing plants Is beginning to increase
at rate that suggests material o1fference IN
Transportation receipts before the year is over.
The railroads have been decrying hostile legis-
Iation bv state lawmakers, but in proposing TO
advance freight rates they simply are inviting
more legislation of the same character. The
New York Central and the Hartman interests
are in favor of higher rates, while the great
Pennsylvania system is opposed to such move
ment. and the fact that roads of such financial
standing not unit the question suggests
that the rivalry between them for the New York
business may become factor Of considerable
interest before the rate matter is finally disposed
Of The Pennsylvania believes that higher rates
would tend to depress rather than stimulate the
railroad business. and its view of the is
strictly In line with economic considerations.
Wall Street so far has not taken much in
terest in the rate fight. 1t is concerned
with the progress of the harvests with the
growing foreign interest in American securities
and the visible signs of Improvement in the
iron and steel industry. AS the latter is con-
sidered the barometer of trade. an increased |
volume of business at the various plants of the |
United States Steel Corporation and at those of
concerns naturally tends to increase
look, while it already has served to induce
better demand for the United States Steel
curites both for investment and speculative ac-
count. The preferred is widely held by in
vestors. while the common is becoming some
thing of favorite with actual buyers, owing to
the companys ability to maintain the dividend
in the period of depression. The crop outlook
is positively stimulating. In the last two weeks
the weather in the wheat and belts has
been favorable and conditions have improved to
an extent that encourages the belief of bumper
yields all along the line. Wall Street house
made the following estimate in the week: The !
corn crop this year, according 10 present prom
ise will yield ZOO 600. 600 bushels, which, at the
September option price of 90 cents. would he |
valued at 81. zoo 600 The wheat crop with !
an indicated yield of 657, 900, 900 bushels a3
cents bushe would amount to s627, ,000,00o /
The cotton crop. which promises $4,000 600 bales
at 91a cents would yield about $500 900, 000 The
oat and hay crops now out of danger are record I
breakers in quantity and quality. Last year
these two crops valued at $1,000. .000,- j
600, and this year that will be further
ceeded. All the crops of 1907 estimated !
by the Department of Agriculture at vaiua-
ton of S1.412000.000 the farm and in view |
of the larger yield this year and the good prices |
generally obtained. ii is quite reasonable to
pect that our farmers this year will produce /
new wealth worth at least IS. 600 ,000. 900. the /
largest sum realized in one year by this !
country or any other from agricultural prod !
ucts"
There is SO much idle money that wider
employment OF funds In the investment markets
already is beginning TO develop. and the chances
are that the use of money in securities in the
second half of the year will be far heavier than
reported In the last six months. Persons who
are engaged in sound business enterprises will
find no difficulty in securing all the credit they
need Credit facilities have not been harmed
by the recent business troubles and the 6nan-