New-York tribune., 1908-09-14
THE FINANCIAL MARKETS
g PE1CH NEW HIGH RECORD PRICES Fl
Investment Purchases Safe but Danger Speculation Money
and Sterling Rates AdUance
THE WEEK IN WALL STREET.

New high prices IOr LIie yCdA "O4O ---O "
the greater number of active stocks IN last
weeks market though the average price oi INC
leading railroad and industrial issues at the
close was well under the top figures. A reac-
+ionarv tendency on Thursday was brought
obout bv efforts of the followers Of the bull
camnaign TO market their securities and py
professional selling on the theory that technical
conditions Of speculation warranted setoack'
also on the theory that the absence OF the puohc
from the market an unfavoraole feature Oh
the situation. Losses ss a rule were not extern
sive while no indication was presented Oh any
change in the attitude Of the substantial market
interests who have been responsible IoF one Vi
tha most extraordinary markets IN the hlStoiy
of Wall Street Stock market values nave az
yanced without important interruption since 'he
-, --ha inward movement has brought
T,o+ot;ons 70 the level recorded before the panic
of 1907. and In the majority OF issues 'ne o!s
decline thet was registered from tne Illsh points
of last wear to the low prices or the late Kan
end early winter has been recovered ana IN
come cases values have gone beyond the pest
6o,,res made before the break In stocks In March
q wear ago. The bull movement has oeen con-
Quoted at time of falling rallroad eaFIlllsS'
reduced bank clearings, general industrlal ue
rression and political uncertainties. being oaSeo
entirely upon cheap money sound credit ana lhe
ob;1itv and determination of g. strong party OF
CAPITALISTS to effect a material appreciatieh III
stock and bond quotations. The hartman
Rockefeller forces have been behind the
market and they have advanced prices ~I'nput O',t
the assistance of the public. save that OF pubic
investors who have been factors in the move
rnent as a result Of their purchases, which nave
reduced the floating supply OF securities
Wall Street believes the public will come INTO
+be market at a higher level 1t is counting
o- +ba election of Mr.. Taft and an active
resumption of Industrial activity followed oy
one of the greatest waves OF Dull speCuial!ol
ever recorded in the Street. Advocates OF III
hation are not wanting in the speculative colh-
rn1Inity but it is to be hoped that noIhllls aP
proaching imitation will develop IN prices anu
that onerators who imagine they see large loFt-
unes staring them in the face on purchases ln<to
In a market that has more than discounted 'he
return of normal conditions In the business
world will study the markets Of the past ana
,e.- IN mind that even With cheap money opera
tions conducted on borrowed funds after quota
tions have risen from % TO 20 points IN less
than eight months invite losses Inc oIS men
ara not philanthropists and they VIII not support
the market after their campaign mas run lIs
course They have done a good work IN uniting
their efforts TO create better level for invest
rnent values. Higher prices have served 10 re-
store confidence in investment circles theg nave
increased confidence among BUSINESS Ieit
throughout the country and they have added
,,anv millions Of dollars to the book assets OF
cor-norations and individuals. In most cases
stocks have reached level hat meas
ures intrinsic worth, but OF course speCuId-
4ion m, well directed lines may carry the gen
eral level higher before the insiders Withdraw
their support from the market In the greater
number OF securities the improvement recoroeu
has been based solid reasons, despite the
country's commercial depression. but an ADVANCE
cannot run on indefinitely, and for this reason
especially at this particular time, when money
will be in better demand from sources outside
of the stock market the exercise OF caution In
speculative operations may prove prohtaoie.
Stocks still may be bought investments to
WELD attractive returns. but this does not war
rant reckless speculation Atchlson common
and preferred. Baltimore & Ohio. Delaware &
Hudson Great Northern. New York. New Haven
& Hartford Southern Pacific common and pre-
ferred, among the leading railroad issues. ana
American Car and Foundry preferred American
Locomotive preferred, American Sugar Refining,
American Telephone and Telegraph. American
Tobacco preferred and United States Steel pre-
ferred among the industrials. yield to the IN
yestor at present prices more than o per cent
and In some cases more than per cent, and
they therefore are cheap for the cash buyer.
Reading returns about per cent and is dear at
its current quotation while the same thing may
be said OF Central of New Jersey and Chesa-
peale & Ohio. St Paul returns a trife under
; per cent; also Baltimore & Ohio preferred,
Illinois Central Louisville & Nashville. New
York Central Ontario & Western. Northern Pa
ciflc PENNSYLVANIA ard Union Pacific preferred
The last named group is not dear II Is un-
derstood that the objective level for Union Pa
cific and Southern Pacific is per cent basis,
and In view of the records of the two companies
in the period of business depression it is not un-
likely that this level will be attained. For the
month of July gross earnings Of the Union and
Southern Pacific companies made new hiSh
records for the month in net. and with the eX-
ception of July, 1907, new high records in
gross Operating economies have been prac-
tised with splendid effect in the case Of the
Hartman roads. well as in the case OF other
conpanies notably the Southern Railway. with
out weakening the physical efficiency Of the
properties and with an increase in their credit
standing In the majority of instances the
credit Of the railroads is better to-day than 1t
has been at any time in their history. and with
large supplies of money in the banks and with
probable gradual expansion in gross receipts the
transportation companies will be able TO go
ahead with plans for expansion on a larger scale
than ever before attempted. Railroads viii Sc
cure money at advantageous terms in the next
twelve months, unless all signs fail.
The investment outlook is promising. and the
difference between investment and speculative
conditions at this time should be carefully
noted by persons who have idle money on their
hands There is danger in speculative opera
tfons at the moment, but there is no reason why
any one should be afraid to buy stocks and
bonds of approved character for investment &C
count General conditions governing the real
value of securities continue to show gradual
Improvement The commercial agencies report
a steady gain in the demand by consumers IN
all lines the percentage of loss in railway earn
;ngs is decreasing, the last government crop re-
port indicates average harvests, which will sell
at good prices, and banks report a better in
quiry for funds from mercantile sources. Au-
gust export figures do not add much strength
TO the exchange situation from the American
point of view but from now on the volume of
shipments OF grain and cotton will increase. and
1t is believed that sterling rates soon will re-
turn to a level favorable to gold imports. Ster-
ling advanced last week under the influence Of
a combination of factors to a level not far from