New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1908-09-13
The Financial World.

In this weeks market we have had the PLAY
of aggressive manipulation against natural mar
ket conditions Quotations having been lacked
up tremendously. the talent committed TO boost
ing campaigns-and in ali this performance no
attention whatsoever paid TO controlling, ele-
mental facts-we have a situation altogether
abnormal
From many quarters come certified reports OK
business Improvement II is indicated that bust
ness interests have reached point sensitive
enough to be responsive TO any actua! leader
ship into better things. That prosperity is al
ready re-established viii not be insisted upon
by reasonable people: but that there IL better
ment pronounced. tangible. Indsputable. Is
counting
Upon the Stock Exchange forceful manipula-
ton has landed many of the conspicuous stocks
at records higher than for a year PAST regis
tered. Hartman shares lead. They are the
toast of every trader in Wall Street. Mr.. Har-
riman is credited with optimistic declarations
calculated to make everybody enthusiastic. AMI
the theory is much distributed that Mr. Harri-
man himself is direeting stock market opera
tons Foundation for recitation Of this sort 70
difficult to find Actually there is indication
of IT, People who are buying stocks because
they believe they thus following Mr. Harri-
man may at any moment discover they deceive
themselves.
booming-not only Union Pacific anG SoutheT-
Pacific. but Baltimore & Ohio and Illinois Cen
trail and Erie-this latter proposition having 0;
a sudden become attractive enough to accOun.
for daily transactions of tens OF thousands Of
shares with buoyanct that is curious
Now, nothing more clearly than Erie dis
close the certainty that Mr. Harriman-as a sane
man-cannot be involved in the performances
with which professional Wall street insists upon
credtins him. Erie isn't making any money
has for years beep losing Physically il Is better
than II used to belts financial condition still
stays deplorable It's management Is gOOd-su-
perior to the management OF systems larger
and richer. What President Underwood mas
done with Erie during recent times is indeed.
entitled to rank among the wonders OF ATneri-
can railway history. Erie needs equipment. IL
needs rebuilding; in most essentials it Is de-
ffcient in not one department does il have what
as one OF the great trunk lines it is entitled to-
IL doesn't pay the interest on its bonds Apart
from euphony. ignoring technical explanations,
the Erie Railroad is in default IT Is pleasant
to have the assurance that this is merely 4
formality, just by way of adaptation TO upbuild-
ing and expansion plans agreed upon Dy ths
conpanys financial friends. And such "assur-
ance' Is the basis upon which We have had IN
this weeks market a whirl upward In the quota
lions for every of the Erie issues The COM
mon stock sells at double what IT was only
little while ago-though from the low point to
the high point there has developed at no time
aught that by plain. straightforward business
calculations could be regarded as other than
discoura ging and Oppressive.
One of these days Erie will undoubtedly have
consequential rank among Eastern properties
From many points of estimate 1t is entltled 70
such consequence. But between what tnen tne
property must be and what now the properly
Is there stretches a stupendous gulf-Whlch must
be bridged by Larger productive power tnah
anything yet Erie has approached
Sentinentally Wall Street affects even to talk
of early Erie dividends in prospect Assessments
are closer-not, merely cash assemmen!S UPON
Erie stockholders-but concessions 70 De imposed
upon Erie bondhOlders-
Much gossip is heard concerning possible crop
damage This does not require serious con-
t 81 Dc hmm
teous WELD Such damage can possibly
inura TO corn and cotton must be insignificant.
The sum total of the harvest yield of the United
States for 1908 is certain to be satisfactory as
to volurne-and of far more Importance. there
IS an active demand for every product which
we have for sale at high priCes-prices Which
absolutely guarantee continuing prosperity to
the American producer Herein is the vital
contrast of conditions prevailing now compared
to those of twelve years ago. when the political
situation was in some wise not dissimilar to
that of to-day. Then there was overproduction
and poverty prices-now there is abundant con-
sumptive power and profitable prices WHAT
ever the momentary market consideration may
he there Is found in this fundamental IaCt
r,ronoise If not qua ntee, of abundant improve
rnent. 1t is the merest truism 70 reclte that
industrial prosperity and commercial good times
find their roots in agricultural wellbeing. De-
cause despite of vast growth as a manu1actur-
ing nation still remain fixed upon the basis
of the farm ana Jne planter, anu Siiei.t C'i4
tinue so TO do until the period arrives when We
have no export surplus of raw products.
Hence, attempts to create stock market de-
pressions by rumors OF crop damage may oe
lightly needed. Final yield can be cut down 20
some extent without any impairment of strength
In the export situation And beyond perad-
venture the who till the soil are going
largely to add to their bank accounts as the re-
suit of their work for this year Argument OF
this character has nothing to do with daily huc-
tuations of prices for stocks. but il must be ad-
mitted governing influence in safe and DIS
Greet operations looking to the future.
Vastly changed Is the financial position OF tns
farmers of the country since the political cam
paign of 1896 Then the customary decoration
of a farm mortgage. usually OF annini-
latir1g character. Discomfort approaching de-
spair reIgned To this must be- attributed pop
ular acceptance of auack remedies which threat.
ened to subvert our political system. How stand
matters to-day? The farmer is not only out OF
debt but is a capitalists lender of money
through banks in the West which he owns. Hs
is longer leading miserable existence. con-
Stunning the barest necessar ies of life. but IS
purchase ser of luxurfes TO extent never known
before in the history OF the world II is no ex-
aggeratiOn to say that the automobile and tns
piano are now common possessions OF the Amer
lean farmer. What must this mean? Surely
that whatever may be the surface ripples OF
market movements there Is at work all the TINS
vast. potent ground swell which is upnitns
business America. When the original thesis -
sound and logical the deduction must in Sc
quence follow. Great forces are at work which
are not to be STAYED or even checked by any
vagaries Of Wall Street
Appreciation Of the extraordinary things that
are good in the crop situation Influences. nat
uraIly enough the Wall Street Spectators IN
stocks. Not only is this natural. il is whole
some. But what in this review has been mucn
pointed out Is that there is not warrant and
cannot be excuse for reckless plunsing in stock
purchases at any time. upon any oasis-thas