New-York tribune., 1908-06-22
THE WEEK IN WALL STREET.

Transactions in last weeks stock market were
| light in volume a narrow movement OF val
ues the course of trading representing little pe-
| yond the operations of the board room element.
| The fact that business early in the week was 81
restricted reflected, it was assumed, un"iiiiiis
ness on the part of the speculative community
to make large commitments either sioe OF the
account pending the presentation of the Repup-
lcan platform and the selection by the cohVeh-
ton of its candidate for Presidential honors'
though following the nomination there was no
outbreak of speculative enthusiasm Predic-
tions that there would be an immediate rise III III
values in the event of the success OF the laIt
forces were not fulfilled, on Friday the enure
list declined under the influence OF professional
selling but this movement did not Suggest "
careful market followers the probabity of i'm
portant operations for the decline in the near
future, the losses recorded doubtless indicating
traders disappointment over the failure or the
public to buy securities as the result of the
happy ending of the Republican dellDeratlons.
Apparently the public is not yet ready to engage
in speculation for higher prices. Its attitude
however, should not induce reckless uddlhS
for lower prices, for the good reason tflal the
markets technical position Is strong. with lie
floating supply of stocks chiefly in fhe hands OIL
substantial interests who are bullish, despite the
unfavorable factors in the business SITUATION
Without doubt Bryan scares will be sprung oii
the market before the November election, put II
is not likely intelligent holders of securities VIII
tempts to raid prices the Bryan and destruc-
ton argument The forces that brought success
to the Mckinley and Roosevelt campaigns VIII
be arrayed on the Taft side in the coming elec-
tion and why. therefore, should any one DOUBT
the outcome of the battle?
The retention of the Republican party IN
power means expansion in the country's indus
tries and the passing of the temporary period or
depression which developed as result OF 'ie
abuse of capital and credit and of production IN
excess of the countrys requirements Ihe Ike
publican administration is not responsible for
current business conditions. The Repuphcah
party is a conservative party and the party OF
progress as shown by its record. and 1t is for
this reason that Wall Street and the business
interests of the country VIII vote for MI 1dII
and the policies he represents. The man VINO Is
losing money now knows that he would continue
to lose in the event of the election of Mr. Bryan
for Mr. BRYAN would upset fundamental condl-
tions and he also knows that the Improvement
in the countrys industries, of which signs are
beginning to show themselves, will become pro-
nounced when the people settle down to another
four years of Republican administration OF the
public's affairs In the banking parlors where
much of the vast capital of this country Is
handled. in offices where the productive anu
manufacturing energies Of the nation are SNAPPED
and out on the farms where the breadStuffs ana
cotton are grown. sentiment demands polcleS
and men at Washington who are best fitted TO
conserve the business interests of the land.
This sentiment will carry Secretary Taft TO the
White House. Though railroad and industrial
companies earnings are low and many dividends
are being reduced. and in some cases passed,
tie outlook is more promising for investors
than It has been at any time since the disas-
irons manic of 1897. Brighter times are dawn
ing and people who become alarmed over cur.
rent conditions which are reflections OF factors
which have passed into history, will not show
judgment based upon sound reasoning or an in
dive of he
that led ,,D 10 the contraction in the volume of
our industrial activities For some time TO
come the stock market doubtless viii be
traders affair. with periods of weakness and
strength but the foundations for ultimate i'm
provement, both in intrinsic and market ValueS'
now are being laid.
In times of business depression lower dividend
returns must be looked for and investors would
better shape their domestic economy to suit the
falling off in their income rather than become
discouraged over the future irascbe over
the present. Economy fortunately is being
practised by the individual and the corporation,
and this movement will be an important factor
in bringing about a resumption Of normal times
in the business world. Railroads are cutting
down expenses and reducing dividends to meet
the falling off in gross receipts, but distributions
to stockholders in the greater number of cases
are by means small. They are large enough
to discourage liquidation by investors. Many
companies that in days of great industrial pros
per1Iy pal0 ., D ana per cent Oh IIlelT StOChS
have been compelled to place their dividends
upon a level that represents reduction of
per cent, in the case of the New York Central,
the Pennsylvania, the Atchison and the Louis
vile & Nashville, but even with these cuts the
stocks of the companies named are cheap at
prevailing market prices. Directors of railroads
and industrial companies have been exceedingly
conservative and cautious in the matter of divi-
dends, and it is not at all unlikely that further
dividend reductions will be announced in the
course of the summer. particularly in the case
of the Baltimore & Ohio, the earnings of which
for the fiscal year will show but a trif1e more
than per cent earned on the common stock.
In the last week the dividends on Big Four
common, Lake Erie & Western preferred and
Republic Iron and Steel preferred passed.
while Louisville & Nashville's rate was cut to
a per cent basis. 1t is expected the dividend
the common stock of the American Loco
motive Company either will be lowered or
passed Such action would be in line with the
well known conservative policy of the company,
which has made its preferred stock of the
best thought Of industrial issues on the list
Money continues to accumulate at this centre
despite gold exports which in the last week
were heavy. The movement of currency from
the interior doubtless will favor New York
throughout July, and the chances therefore of
higher rates for funds not at alY promising
for the summer, while 1t is not likely the de-
mands for money in the fall in connection with
the gathering and marketing of the crops will
result IN any stringency at this point, though, of
course, the autumn price for accommodation
naturally Will be higher than it is at present
There is much money in the local banks and
other financial institutions that shipments OF
gold and the return Of government deposits to
the federal Treasury will not cause any hard
ship to mercantile and stock market borrowers
Money is growing cheaper in all parts of the
world, including Germany, where distinct i'm
provement is recorded over conditions recently
prevailing. The Imperial Bank of Germany re-
duced its discount rate last week The weekly
return Of the institution showed large gain in