New-York tribune., 1908-12-07
FINANCIAL MARKETS
PRICES GENERALLY HIGH.
Good Buying IN Lou Priced Issues
Gold Exports. -
THE WEEK IN WALL STREET.

excursions meet with no material success and
plans from the oracle OF Boston to lower values
for the benefit Of the bean-eating shorts do not
bring about the desired results. Doubtless some
day there will be good old-fashioned slump In
which havoc will be played with margin ac-
counts, but even such a movement. II 1t develops
in the near future. will not be considered the
signal for the beginning of protracted decline
There are a few pessimists in the Street and
outside the Street who have gone wrong on the
current market, and as a consequence they are
preaching the gospel of lower prices. They are
pointing TO the enormous holdings Of individuals,
estates and corporations as crime against the
public veal and they excoriating directors
In corporations because they see fit to invest
their private funds in the concerns which they
represent The disappointed operators who have
not been benefited by the rise In values cry OUT
that they can see breakers ahead. that the mar
ket is not based on conditions that have perma-
nent eIeInehts OF strength and that quotations
for all securities selling at level that more
than measures any possible improvement that
may take place in the position of the countrys
industries at any time In the future. The biggest
bears at present are the sold out bulls and the
people who have failed to interpret correctly the
Significance of the character of underlying con-
ditions If stocks should decline 10 or 20 points
they would become rampantly bullish but there
is no indication in the current situation that
stocks have any intention Of seeking material
" cheaper level 1t is true that stocks are large
" held by the rich individuals and big insutu-
tons and 1t also is true that these holoerS
believe their possessions six months from now
will be worth more than they are at present
Stocks are IN strong hands. Greater amounts OF
securities are tied up in investors boxes uldl,
ever Sbefore in the history Of the country ana
unless there should be a radical adverse chanse
in the factors governing money, business ana
politics the floating supply Of desirable invest
ments gradually will decrease
The general market moved in an Irregular
manner throughout the week. with the general
tendency In favor of higher quotations. Prices
ranged near the best figures of the year on
active dealings, and declines when effected rep
resented little beyond technical market condl-
tions Heavy foreign selling was easily absorbed
Gold exports had no adverse influence upon SEN
tin1ent or quotations and efforts Of one set OF
operators to sell out on other operators faled
to undermine values upset the calculations
Of the element that is trading on the bull SIDE
for long pull When money becomes scarce
and when quotations touch level that Is entire
" out of proportion to the price OF money and
the investment return on securities readJust-
rnent OF values TO cheaper range Will be pos
sible, but just long as money is a drug on
the market and In the absence OF disturbing
for a protracted decline. The course of specu-
lation in bull market, however, always is at
tended by reactions in which large margins are
heavily reduced and small margins wiped out
entirely, and movement Of this sort may come
at any time before further substantial gains are
recorded Declines based on such movement
reflect nothing beyond technical conditions and
passing liquidation by class of spectators
that is frightened by the manipuiative tactics OF
Wall Street pools and cliques that are interested
in throwing out the small operators for the pur-
pose Of accommodating stock at more attractive
prices. There have been healthful reactions
since the high points reached on the post-elec-
ton advance but the buying power under the
market has been strong enough to prevent de-
clines OF Importance. There has been no specu-
lative orgy and indication that an outbreak
OF this sort will develop.
There are good speculative possibilities in the
current market and excellent chances for the
investor. Investors buying first class mort
gage issues and high grade stocks. Good buy
ing is reported IN the low priced issues that
appear to have favorable future, and in this
class may be mentioned United States Steel
common. Chesapeake & Ohio, Colorado & South
ern common Missouri, Kansas & Texas common,
Kansas City Southern common, Wisconsin Cen
trail preferred, Wabash preferred, Denver & Rio
Grande common, Brooklyn Rapid Transit and
the Eries. The Erie Railroad has begun to show
better earnings and the character Of the fnan-
ciaI support behind the company has materially
improved the credit of the road The Rock
Island is IN better shape, ana the financing last
week Of the needs of the st. Louis & San
Francisco by one of the leading banking houses
in the Street relieves the Rock Island of a
burden that will help TO place its securities on z
higher market level. The Hartman shares are
still being absorbed by the strongest interests
IN the Street. and the talk OF 200 for Union Pa
cifc does not appear to be based unsound
argument. St Paul is in better demand; also
the Hill shares. The general market is resting
a solid foundation that has for its props q
strong financial situation, increased gold pro-
duction, gradual expansion in the country's in
dustries and increased buying power Of the
great agricultural community as a consequence
of a season of bountiful crops Of cotton corn,
wheat. oats and other products OF the soil, which
is productive in this country than in any
other country Of the world. Business is slowly
moving along lines that will place II on a normal
basis. The country has recovered from the
fright and loss of confidence that came with
last years panic Credit is sound and there is
more money in the United States in actual cir
culation than ever before IN the history OF the
nation Tariff agitation is not the bugbear II
used to be- and while in some lines, notably steel
consumers are holding off TO certain extent
pending the readjustment OF tariff schedules
business shows no signs of being upset because
Of proposed Encouragement of import duties
The only note Of disappointment over the bust
ness situation is heard among people who enter
tained the foolish notion that following the
election of Mr. Taft there would be an immediate
boom in ali departments OF trade and that a
prosperity basis would be established at once
Conservative business men feel that their wor-
res are over and that they now entering a
period of gradually increasing trade activity.
They do not want j boom. They do not want
OyerstimulatiOn and OyerspeCuatiOn, which al
ways END in collapse. And they do not look for
a great expansion business until after the
holidays. Money rates promise to move to a
higher level in the new year, but nothing in the
VA. of eyorbitant quotations a.n fcray do,,-ad