New-York tribune., 1908-03-23
THE WEEK IN WALL STREET.

developments Of decisive market influence, and
the trading in very large measure pro-
fessional. with the bears now covering their
short commitments in haste, alarmed by the
energy of the buying for the long account, and
now putting out fresh short lines. with the
cessation of that buying which appeared to be
to considerable extent manipulative in char
acter and based on the conviction of actual
betterment of the general business and indus
trial situation. The public still holding
aloof from the stock market, although Of course
there is certain proportion Of outside buying
and outside profit taking well, ii may be
added. for the lambs are wary and those who
venturing into the market in these troubled
times appear to have changed their habit of
mind and to have learned to take profit when
they it But without the vast uplifting
force of purchasing demand from the general
public there be genuine advance in
stocks, and that great body showing no dis
position to risk their money until the indications
of Improvement shall become much clear
than they are at present. In comparison with
conditions Immediately following the panic the
situation is greatly improved. and the advance
in stocks in the last month has reflected that
change for the better. But business is mending
only slowly, and although the worst of the de-
preston is probably there is yet ground
for unmodified prediction of speedy return of
prosperity. which must be preceded by the
establishment of full confidence.
One of the most encouraging features of the
situation at present is the excellent outlook for
the crops Of wheat and corn and cotton, accord
ing to adv;ces from the West and the Northwest
and the South. Winter wheat is everywhere
ported to be in promising condition, and the
ground is ready. thanks to the forwardness of
the spring this year, for the sowing of other
/ crops, q normal harvest from which will add i'm
menSely TO the wealth of the country and hasten
the coming cf better times. Money continues to
be piled up in the banks, unfailing sign of
duiness in business and normal sequence OF
a panic period; but, always in the past.
there Will come time when, confidence restored,
these great boards of cash will be drawn down
and placed in active and remunerative employ
ment, when enterprise will revive and corpora
tions will resume their interrupted works Of
tension and betterment and prosperity will be
again evident fact, Astounding pros
perfty than has yet been witnessed
For the present money is drug in the mar
ket, with little demand for 1t that call loans
IN practically unlimited amount can be had at
maximum Of > per cent, and the market for
! time funds of all maturities is stagnant, with
rates relatively very low and practically with
out change from week week. Funds are still
pouring into this centre from the interior, where
! they cannot be placed at profit and the ac-
! cumulation here is great that the surplus
! serve of the Associated Banks is in excess of
S3a,000,0 600, despite the withdrawal of many mill
| ions OF government deposits a week so ago
/ Many more millions to be withdrawn this
week. completing the repayment of the $35 000,-
/ 900 called for by the Secretary of the Treasury:
/ but they readily be spared, and, owing to
the increasing deficit in the national revenues,
| considerable part of this money is being
turned to circulation. II is probable that before
midsummer another call viii go for the
the Treasury of perhaps much as
10000 additional of special deposits but the
money market meet that drain without en-
! barrassment, for no such quickening meanwhile
| of business activity is at ali likely would
/ qure the use of many millions of funds.
Spring trade is fairly brisk but the buying
represents the necessity Of reflling depleted
shelves rather than enlargement of the cur
! tailed demand, for. however strictly economy is
rractised, goods will wear out and new articles
/ of apparel and of ordinary must be bought.
| Collections backward however and CONNER
| cial failures not diminishing in number
/ in aggregate liabilities, while the continued
shrinkage in bank clearings tells the story of
| trade contraction. The copper market is reviV
/ ing extent, domestic consumers being
reported be making purchases in fair vol
ume. after long abstinence; and a similar i'm
;royement is noted in the iron and steel indus
| Try. The decision of the conference of steel
manufacturers in this city last week to adhere TO
| the policy of maintaining prices was construed
! as d favorable indication by Wall Street, which,
/ reasoning from the fact that the boards of di-
! rectors of the United States Steel Corporation
and some of the other steel companies contain
! fnanciers whose acumen, whose experience and
! whose unexcelled opportunities for obtaining the
! broadest view of business conditions and ten
!
| conclusion that the action of the steel manu-
facturers signifed that the depression would not,
! after all. be long continued.
The reduction of the dividend rate of the New
| York Central, although long rumored, appeared
TO take the market by surprise and caused a
sharp drop in the price of the stock, which,
however. rallied on the following days. In view
of the falling off of business offered though,
which has resulted in serious a decrease in
gross earnings, and of the increase in operating
ting nF he
! be regarded as an unfavor2ble sign. but rather
as wise and prudent recognition of the actual
state of affairs The reduction was only from
per cent yearly to per cent, the rate which had
prevailed from 1900 until tha fall OF 1906, and
the raising OF which was an act OF douotful
Legitimacy occurring it did at time when
rnonev market strngency was becoming acute.
( The New York Central was by no means alone
in adoDting that policy at that period, and its
dividend reduction will be followed by similar
action by other roads In the lnduStrlal heio thc
temporary curtailment of dividend returns TO
shareholders is proceeding on an extensive scale
the last week having seen the passing OF dlVl-
dends on the preferred stock of the Crucible
Steel Company and the common stock OF IN"
Union TvpeWrter Company, the looping on OF
extra dividends by the Associated Merchants
COMPANY the Adams Express Company and the
" Westinghouse Air Brake Company and the de-
! crease in the extra dividend declared by the
/ Corn Products Refining Company. while the de-
preston in the copper industry was emphasized
bv the reduction of the dividend of the Rio Tinto
Conner Company the most important copper
producer of Europe
The pamphlet report of the United States
Steel Corporation for the year ended December
81 last presents remarkable array or colossal
totals and a remarkable showing of strength.
The gross receipts were the largest in the his