New-York tribune., 1908-08-24
THE WEEK IN STOCKS AND MONEY

sional element TO bring about lower prices IoI
securities resulted in number of sharp losses
in the early DAYS of the week but the move
ment was not accompanied by liquidation from
important market interests, selling by investors
or any indication that the real market leauerS
were less bullisn than they were fortn1sht ago
when prices moving steadily upward me
so-called big men until Saturday apparently
were willing let the market move under lhe
influence of the trading element ana thaI Vi
the large Individual spectators, who sehefaliF
may be found allied with the bear side wheh-
ever substantial banking support is Withdrawn
from the market Weak accounts We're shaken
out an he short interest was increased STOCKS
offered ior sale found ready buyers anu aC-
cording the opinion OF the largest brokers III
the Street the Hartman Morgan STANDARD oI
holdings were materially increased a result
of the weeks various operations. There Is niue
actual stock for sale. The strongest men IN the
country are the heaviest owners OF securities
both on speculative and investment account, and
as they can carry stocks at an extremely 10"
cost far under the interest return on the issues
il does not appear reasonable to believe that
they will distribute their possessions until they
can do so at greater profits. If money should
suddenly gradually advance to hlgh level
stocks would come the market but there IS
not the slightest prospect OF high rates for 1uhus
in the immediate future. The banks through
out the country glutted with money NO
problems are presented this year in the flnanc-
ing of the harvests. for the good reason that de-
posits in New York and Chicago have advanced
to unprecedented figures.
Difficulty is experienced in finding profitable
employment for money. and though the COM
1nerCial banks looking forward TO Stifer III
terest rates in the autumn months the supply OF
idle money Is so large that 1t is believed nothing
short of an immediate business revival on
basis Of widespread industrial activity can pro-
vide use for ii. This country will need no as
sisrance from Europe this fall through the me-
dunn of gold imports at New York It is IN
reresting 10 note however, that Notwithstanding
= heavy falling off in our exports of merchandise
and domestic products the balance of trade is
running in favor Of the United States. with
every Indication of the accumulation of extended
credits abroad as result cf heavy shipments OF
cotton and brea dstnffs in the course OF the next
few months European supplies of cotton and
food products are low. while the foreign har-
vests of cereals have been short. It is there
fore probable-indeed. ii is a Certainty-that
Europe Will be compelled to come into this mar
ket for heavy supplies of grain and cotton, while
il is likely It will be forced 70 pay stiff prices.
Tie United States will be in a position TO i'm
port gold in the autumn If the necessity for
such movement should arise, especially as
money rates at London and Paris are heloW the
low level prevailing at this centre. There is a
vast accumulation OF idle funds in all the mar
lyets of the world which viii become an i'm
portant factor in encouraging greater activity
in the worlds industries. though 1t Is not prop
able that expansion will be rapid. The best IN
terests Of the mercantile community VIII be
served tv q gra dual return of normal times in
the business world, and the only possibility OF
an unhealthful recovery lies in the signs or an
increasing speculative appetite in securities ana
commodities There is so much idle money that
the speculative spirit naturally has been
aroused but is be hoped that, prohting by
the evil effects of the overspecuIation Of the
past the power Of the conservatives in all lines
of business and speculation will be able TO hold
IN check the OverenthuslaS1n OF me faSh ana
roaring radicals
We had strained conditions last fall. Of which
now there is not the least indication, and though
the country has recovered in great part from
the troubles that began in the latter part OF
1907 there is no reason TO assume that similar
conditions cannot again be brought about
through extravaganza in private and pubic HE,
through overspeculation, that tends to upset
credit and overstimuIation in business, that leads
to collapse. Az the time of the panic, and for
many weeks thereafter. doubt. uncertainty and
apprehension prevailed in all quarters At pres
ent timidity has given way To courage and uh-
easness has been succeeded by confidence
Credit is now in sound position, money is
awaiting Investment and belief in prosperous
future IL growing. These are factors which are
making for better days in the countrys INDUS
tries. Average harvests are promised. Inc
farmers have not felt to any great extent the
effects of last years crash in the financial world
They are in a sound position They are con-
tented and prosperous. and have the expectation
of selling this years crops at profitable ngures.
Sound conditions in the agricultural section Oh
the country much 10 the general WelIdfe
Of the nation. and the harvests which Will be
gathered this year will be an important factor in
restoring equilibrium in the railroad world,
which has suffered enormous losses in the last
eight months Investors. however. have not lost
faith in American railroad securities, reflection
Of which is presented in the good demand now
noted for new mortgage issues as well as for
old issues. and in the fact that in the first half
of the current calendar year bond sales on the
New York Stock Exchange were about double
those recorded in the corresponding time in 1907.
Securities can now be marketed upon reasonable
terms. and the accumulation Of capital and the
return of confidence on the part of capital mean
that the work of expansion in the railroad world
will be resumed operation which always
tends to make the land prosperous.
The policy of government supervision Of the
railroads has been established, and the com
panies are adjusting themselves to the condi-
tions imposed by federal regulation admins
trated by the Interstate Commerce Commission
The railroads have suffered from the hostile at
ttude of many state lawmakers but they are
finding out that confiscatory legislation viii not
be upheld by the courts and that the public Will
not stand for any policy that will not allow a
living profit TO the carriers. The railroads have
been the greatest factors in the material growth
of this country. and impairment of their credit
serves to cripple the people at large just
much as il Injuries the owners of railroad stocks
and bonds. Economic conditions in the United
States are strong, and the general situation will
be further strengthened by the election Of Mr.
Taft. The big of the Street basing
their purchases Of securities on the theory. which
is accepted in business circles. that Mr.. Bryan
Will fail of election. on the ease Of money, on
the promise of average crops which will be sold
at good prices, the passing of the hysterical
outbreaks against corporations. on the position
of this country in the international exchange
market, on the signs of greater activity in all
lines of work and on the common sense of the