New-York tribune., 1908-05-10
The Financial WorId.

larv
As to the naturalness of this movement r..
is much to he debated. Crude manipulation r.
been too evident 70 permit of very much sn-b,,
siasm upon the part of careful students ros-.
is doubt as to the public's participation.
Among the weeks events none outreachss ~
consequence 6f the authoritative Eovern,...
crop report, forecastiny bumper harvas. :.
winter wheat This spells continuing prosperi,-
to the agricultural community-means continn
ing accretion of wealth TO real producers-or.
setting thousand phantases and hgrnents =.
imaginary distress A great winter wheat cron
is not only satisfactory in itself, but presur,a.
weather conditions favorable to large produc-
ton of" spring sown crops; and it seems as usa.
certain as any prognostication in any such mat
ter can be- that the American producer s =,
eniov another year of bountifuI yield Rv
bsppv coincidence this meets enormous de-
mand Consumption of foodstuffs all over ths
world has something more than overtaken pro-
d,ction and every bushel of grain that can n.
raised finds ready market Testifying to this
is the rather. sensational advance in prices for
immediate grain deliveries for both wheat and
,corn-in a month when new crop production ia
not available for the satisfaction Of open con.
tracts
The bearing Of this upon the security marks,
e
in instant cash command. and If all we have
n sell * more than bid for, it follows that thers
roust ne establishment of foreign credits to an
amount which overwhelms any ordinary fnan-
ciaI transaction. While Ii Is true that our coUn-
trv is called upon TO pay out 10 Europe larys
e,iros for ocean transportation and for Settle
1nent Of letters Of credit issued to American
travellers the sum total OF these lsSuances cuts
but small figure when our great export balance
continues 10 pile up Herein succinctiy, IS the
secnritv market meaning of what Is happening
in the grain markets and what is likely TO hap
pen before many months nave passed IN ths
cotton market So long as this ccnd1tion exists
and there is not the faintest sign OF approach
ing termination-it is impossible to weaken ths
dominating strength of the American financial
condition.
Such considerations may seem far-fetched {,
the ordinary Wall Street speCulator, but their
governing force reniains-nust doninate-wil
be controlling
The presAnt movement OF the security market
t clear revelation of authoritative control
bv interests committed to optimism Thzre IS
no outside enthusiasm-there is no apprectaols
enlargement of public speculative accounts; but
there is evident quiet persistent buying Of
genuinely representative securities which can
be based only upon appreciation OF present con-
dItions and future improvement
Wall Street is much puzzled as to who -
doing the buying Wall Street is always puz-
zIed when natural movement asserts Itself. be-
cause speculative sentiment IS sentimental and
preferably cynical The fact remains that buy
ing goes on-ouyfng of solid character Per-
haps the most significant characteristic IS me
continuing activity of odd-lot houses. Ths
small investor is still largely in evidence. pick
ing up his twenty or fifty shares at every
favorable opportunity. That this Is SO is ap-
par-nr from the continual enlargement or tns
number of shareholders in every important rail-
al
great deals a more potent factor for improve
ment than any ordinary speculatITe ei7nnsn'
could contribute.
Of gratifying meaning is the continual
e+rang+henfnz Of the financial position Of New
Yorl's associated banks Week after week. ror
600 time tha1 have shown accumulated rs-
sources remarkable at this time OF the redr-
con1pariug more than favorably with any recent
similar periods. This means that noardlhS ald
nervousness no longer govern. thar money se-As
it's natural depOsitary. and by loslca4 seQueHC'
interest rates for both time and call loans De.
come not only reasonable but easy. Inls. o.
course brings into sharp contrast Iho F1FeHl7
m be derived from lending money and that %
be enioyed from investment in dividend paying
securities contrast that Is great and "noly
in favor of the security investment proposition
Nor is il pres1Irna BILE that this is a temporary
Condition-everything points To contlnlanee
of a financial position which must faVoT "
investment side Of the security UafAel- FIoo-
ably there is much in this argument 70 accoun,
for the, steady strength which we see WITHOUT
accom- niment of speculative enthusiasm Z pom
s1,rb basis there is fair presumption that in
prOyement win continue. because beneath IN
proving prices are the underlying facts Of nat
uraI and inherent strength of course. this oF
means prevents sharp temporary re- .
always possible in market influenced Cnlehs
by technical considerations; and that We nave
such a market IS beyond poSsibll1ty OF douo'
In some parts 1t is indeed clearly aTtt1claL
Reasonable students OF the situation viii not
doubt that the current pace Of the market mas
been too fast. Some interests a long time our-
dened with stocks are evidently exceedingly
anxious to get unloading chances stocks when
ordinarily are not quoted once week get now
conspicuousness for activity and fer bUoyancY-
The exhibit IS far from inspiritins- Unless sons
ordinarily trustworthy signs are now Vnou!
gone wrong sharp reactions must soon marx ius
of quotations Union Pacinc no :,
i1mped rp tremendously far less on account 't
ANYTHING Mr. Hartman has done or = dnhs
or contenplateS than for the reason that q NsN
York Chicago pool rushed in with mist7Y-s
sentatiOn of Hartman intimacy In Feadlns =
similar curiO situation prevailS-New io.A @
bankers credited with stock market actNlilss
that they have scarcely anything whatever "
do with.
But what most is I'm evidencs on ths Stock
Exchange just now is that the professional es-
ment has almost universally turned hui-isa'
Some of these leaders were only week q
two ago Just as wildly bearish They sa" az
tress evervwhere then: they were -heralds %
nothing but Bankruptcy They sold stocks shoi+
sold them by wholesale Their sales came.hoN
ever after the market had been thorousSs
Inundated and they could start no new 80 s,
with anv effectiveness in II. Net results w. w.
losses Two firms went TO the wall backing "a,
of date pesSmiSul- Under such clrcufhSseaI.ssh,
there was only one natural. logical thing I.n. Ior
speCulative wiSeacres TO do--bsConls oVeLll7-
lust as hilariousv buIlish as they had is.s, 1eJ,
erevsOn,elv hopeless. That they found III tI Iss