New-York tribune., 1908-02-10
THE WEEK IN WALL STREET.

with the object Of giving urgently needed ala
to embarrassed firms and institutions The oulK
of the trading has been among professionals, the
outside public still holding aloof from the mar
ket and the causes which are keeping the Gus
toners Of commission houses from dealing IN
stocks are the causes for the continued recession
in prices. Chief among them may be reckonea
the trend Of business and industry, which IS sun
in the direction of lessened activity and lower
prices for commodities. with the turn not yet
clearly in sight National politics. too. has be-
come a market factor. the unsettlement Incl
dental 70 a Presidential campaign having al
ready begun to be evident ct an unusually early
dare in the year. In the grain markets there has
been a sharp advance in the price OF wheat,
based upon expectation of a small harvest this
year. although it may be said that the crop gath
ering season is too many months away TO make
possible the forming OF intelligent judgment
as to the volume of the harvests be garnered
this fall, the prophets of shortage founding their
opinion mainly upon the fact of the remarkable
succession of excellent crops which this country
has enjoyed and from that reaching the conclu-
sion that "a lean year is due
Reports Of railroad earnings during the week
have not been of such a character as TO suggest
The likelihood Of speedy return Of prosperous
conditions, heavy decreases in gross earnings
having been shown by leading roads, rejecting
the falling off in business activity along the lines
of the systems reporting. Operating expenses
are showing in comparison very little shrinkage.
the conclusion reached by stock market opera
tors being that period of dividend reduction IS
at hand. This conclusion is not by any means
a new one. and il may be that the present prices
for securities representing q tremendous decline
from the levels of yer ago, will prove to have
discounted the unfavorable conditions existing
in the transportation and industrial fields. Here
and there are indications of revfving activity.
with factories reopenng and production lncreas-
ing, but these are counterbalanced by announce
ments such that Of the Baldwin Locomotive
Works. which in the last week has found it nee
essary 10 lay off several thousand men; and an
other proof that the turn has not Yet definitely
come. if proof is needed. is in the fact that the
total bank clearings of the country still
shrinking, although the January declines are less
serious than were those for December.
But. although it is undeniable that the pres
ent industrial and commercial state of the
country is greatly depressed. it is no less GER
tain that Improvement Will come within meas
urably short space OF time A real panic, large
ly the outcome OF the spirit of high daring
which is the natural development Of every Pc
Rod OF long continued abounding prosperity,
swept over the land last fall accelerating the
slowing down process which had begun months
before Recovery from panic conditions has
never been rapid. and must be expected to be
gradual now. There may be dividend reduc-
tions and there viii be here and there
ceivership for q weak railroad or weak in
duStrial corporation. for in times of stress the
fate of weaklings is reorganization, and
nlercia1 failures may be looked for, some due to
the nature OF the business, the dealers in lux
uries feeling especially the pressure of a pc
riod of general enforced economy and others
attributable TO overeAtension and beiated at
tention TO the signs of slackening IN the general
business pace Underlying conditions, however
all such TO make likely the comparatively
early restoration OF prosperity. There is no
longer the disturbing factor Of uncertainty con-
corning the maintenance Of the national policy
of honest money, and the assurance Of this has
in Europe. The West and the South in 1898
mortgage ridden and needy, free from
debt and easy in circumstances, thanks to
cessive years OF excellent crops of grain and
cotton The federal Treasury. with its s225-
100000 of deposits in national banks subject
TO recall on demand, is in very strong position
10 meet the iessening of revenue, which is q re-
suit of the temporarily cIrtailed earning power
Of the people. What is necessary for the res
toraton of prosperity is the restoration of con-
fdence, which will come gradually.
Money market conditions have been easy dur
ing the week. which has seen practically no
change in rates for either call or time loans
from the preceding week. The arresting of
the decline in money rates and their slight
hardening may be attributable in part TO the
Withdrawals by the government of several mill
ions from the local depositary institutions. The
weekly statement Of the condition Of the Clear
ing House banks showed loss Of nearly Sill
600 600 in cash. against q gain of more than
known movements Of money during the week.
Much of this loss. however, represented simply
Withdrawals by trust companies Of funds on
deposit with the banks for the purpose Of MAX
ing strong showing in the first weekly state
rnent Of their condition. recently ordered by
the State Superintendent of Banks, MI Will
Jams. The loss Of cash has reduced the surplus
reserve Of the associated banks 10 d trifie
under $29, 600, which is still very substan-
nal hgure. Receipts of cash from the interior
@alfT,
amounts poured in to this centre for the last
severa! weeks for possible employment here in
the absence of profitable use for the money in
the home territory of the forwarding banks.
The bank statement Of Saturday may be said
70 nave been the most important ever issued by
the New York Clearing House, for it presented
for the first time an approximately accurate
view of the actual banking position here in
Guiding as IL did, in addition to the customary
totals OF average condition Of the Clearing
House institutions during the week a similar
view Of rtle average condition of all state banks
In the city not members Of in afilistion with
the Clearing House and of ali trust companies.
One OF the incidental advantages Of the innova-
ton, which IS due 70 the initiative of the pres
ent Superintendent OF Banks, is the fact that
1t will prevent the recurrence Of the occasional
scandal Of charges, widely believed to have
been well founded, Of the shifting of cash be-
tween banks and trust companies for ulterior
purposes. The new form of statement has still
another valuable feature in presenting as a sep-
arate item the actual condition of the asso-
ciated banks at the close of business on Fri
day, thus supplementing the judgment possible
from the presentation of the statement of aver
age condition. As an indication of the clearing
away of traces Of the panic. it may be noted
that the detailed statement of the Clearing
House banks was issued on Saturday for the
first time since October 20. the four institu-
tons which have suspended meanwhile Of
course, not being included. The statement