New-York tribune., 1908-03-16
THE WEEK IN WALL STREET.

Gus week having continued without abatement
and with the accompaniment Of enlargement OF
the number of issues dealt in and increase IN
volume of daily transactions. The rise has been
largely n,anipulative and almost wholly profes-
sional, heavy short covering having been in
duced by the strong buying by powerful interests
and the public having taken little part in the
trading. Underlying the improvement in stocks,
however has been the fact of Improvement in
sentiment and apparent slight betterment in
trade conditions, TO which must be added the
not unfavorable character Of the advices from
Washington. Dispatches early in the week had
il that the President had instructed the Com
missioner of Corporations to investigate the
methods OF stock trading, which order was
regarded as equivalent to investigation of the
New York Stock Exchange, with the possible
outcome of the recommendation Of legislation
which might seriously restrict the freedom with
which securities are now bought and sold in this
central market, but il later found that the
inquiry would have no wider scope than an ex-
animation of measures designed for the sup
preston Of bucket shops. The Hepburn bill.
imposing a tax Of so cents a share on all sales
Of stock Is still TO be reckoned with, but few
pect that the measure, which would have the
effect Of destroying the markets for securities
IL this country, and probably transferring the
business Of dealing in stocks and bonds to
Montreal or London, viii become law in its
present form.
Seni-of1icial assurances that bill would soon
be introduced in Congress. Of which the Presi-
dent had signifled his approval looking TO the
modification Of the Sherman antitrust law, par
Ticuarly in the direction of allowing the rail-
roads under proper restrictions TO enter into
pooling arrangements, d definitely bullish
factor n the weeks market. The runors of the
Presidents friendly attitude toward the PROPOSE
ton for raising railroad freight rates as q means
OF obviating the necessity for reducing wages
are still current: but the adoption of that e1-
pedient is exceedingly doubtful. Freight rates
undeniably low, but effort make eff
fective higher schedules IN the face Of declining
prices for all commodities could hardly have the
result Of materially increasing revenue, even
though the Interstate Commerce Commission
should grant the authorization. to which ship
pers are beginning TO manifest their orp0si-
lion
However stringent may be the economy prac-
tised in time Of Industrial depression, clothing
and all other Indispensable articles OF use wear
out and must be replaced, the current actual
requirements of S0,000 600 Of people creating a
vast demand for commodities. This demand Is
met for while out OF the surplus stocks on
hand when from any cause the end of period
OF heavy production arrives and the general buy
ing power slackens sharply, 1t IS widely be
lieved that the coming OF the present crisis
found much less of so-calIed overproduction
than has been the case at corresponding periods
in the past, and. that being true. the revival
Of industry, TO the extent Of Teplenishng the
stocks OF commodities which are vitally neces-
sary would be the more speedy. And SO il is
that factories here and there are reopening and
railroads placing orders for steel rails and
the copper industry is beginning 10 look up and
more railroad cars are being shifted from stor-
age tracks and placed in commission So it Is
also, that the impetus is being given for dd-
vance in the stock market. a advance which
may easily overdiscount the change for the bet
ter in the field OF production. Bank clearings,
which are the indication Of the activity Of busi-
ness. are still far below the normal; railroad
earnings for the first week Of this month. al
though rather less discouraging than in pre-
ceding weeks. were Is per cent less than for the
same week Of last year; the commercial fall
for the first weeks Of this month
showed liabilities almost twice as heavy as in
1907. and Bradstreet's index number for March
was the lowest since July l. 1898. showing that
prices of commodities are still declining.
That prices OF stocks at the levels at which
they stood prior to the advance Of the last ten
days measured the extent OF the business reces-
sion may well be believed but that their present
upward course can develop into d genuine bull
movement seems impossible. The stock market
registers, and 70 degree anticipates the move
lnents Of trade and industry: and for real
quickenlng and broadening of Industrial and
commercial and transportation operations the
prerequisite is the restoration Of confidence
With confidence restored, the idle money now
piled UP in the banks viii be released for profit
able and productive employment the railroads
viii resume their great beuterruent works. sIs-
pended through inability TO obtain funds EXCEPT
al ruinous rates; the steel companies and the /
railroad equipment companies viii enlarge their
working forces and increase their production
and in these and other directions an increased /
buying power VIII be developed which viii make /
possible the return Of prosperity. No question /
affecting the validity Of the countrv's standard /
of value Is now present TO impede the restors- /
ton Of prosperity. and in that respect the stu
alton is encouraging. The interior is prosper /
GUS as the result OF many years of good crops. :
the receipts from which have enabled the farm /
ers TO free themselves from debt and if the har-
vests Of this year shall prove normal 2 trerner-
dous addition TO the wealth Of the country will .
be made But capital viii not be ventured IN /
new enterprises, however promising and will !
not be supplied 10 esta ablshed corporations in .
any volume while confidence is lacking.
There is abundance Of capital available for /
absolutely certain investment as witness the /
New York State bond sale Of last week; but al /
though time money rates are comparatively low /
and money On call is ioaning at practically .
nominal rates, the railroads unable to Dor /
row money Favorable terms. and instead Of (
finding q market for bonds are renewing their .
short term obligations with other short term /
notes, often bearing d higher rate of interest. /
That this Is so IS not surprising in view Of the .
hostility toward railroads shown in so many /
parts OF the United States. q hostility which has
taken concrete form in the enactment Of legis-
laton extremely costly TO the roads. This hos
tile spirit though now is showing signs of les /
senlnS. But d Presidential campaign is at hand .
with its usual accompaniment of attacks IIpon
the corporations, and anything more than tenn
poTary Improvement, welcome and redssuring
that is cannot be looked for until il is seen
who are TO be the nominees of the two great /
political parties for the Chief Magistracy and .
until IL is reasonably assured the election will .
be carried by that nominee whose record Is 4
guarantee of an administration which shall he
al once conservative and firm in its attitude
toward the corporations and the business inter +