New-York tribune., 1908-07-12
The Financial World.
THE TRIBUNE'S FOREIGN NEWS.

virtually could be regarced az certain.
Union Pacific ard stocks Of similar sfana,..
character led in the weeks bettermert. Y.t
at the close OF the week we have recession, :.
substantial sort in which this same charae.s.
of quality stocks figure with similar eonsCir,,.
BUSINESS.
neut and what may be public estimatss--s.
nears i'm see-saw developments which maks ~
entire weeks record look artificial This i.
deed Is the position taken by cynical Observes,
and by bear traders They charge that yrs..
took place during the cheerfuIness OF the sarss~
part OF the week represented mere fabriesao.
the market made-to-Order perfornnan~
And common fairness must admit that thers.
a good deal to be said on that side
a distinctly bad impression has been uaass -
the Baltimore and Ohio declaration Of a ayvs
dend which was not earned Officially It is 81.
pIained that the funds come from accumuls,ss
surplus. That surplus runs well on toward Sa-
100000 II is a surplus which has been crea,ad
from excess earnings It is real That il is ansa
cable TO precisely such purpose as now draws
upon it is equal clear. Yer any FAR exposition
fact that the declaration leaves very bad IN,
preston. In so far as ordinary opinion prevails
this dividend is hailed and win continue to b.
regarded as uDearned-
By way of explanation, or justification. n
is urged that the Union Pacific a Iarra
holder Of Baltimore and Ohio stock IL entities !,
make full dividend collection; and this rs,-
resentation is set upon by every adverse critic
Outcries arising that the Baltimore and Ohm
system Is thus being made mere tender %
another (far distant1 property, and that In
fiscal policies are arranged and operated wholly
apart from what Is normal for Baltimore and
Ohio itself. that It becomes mere pawn in Ia
Union Pacific game.
Whatsoever may be actually true. whatsosvs-
reasona BILE, altogether sure is the fact that M,
in long time past has Wall Street had arT
incident actually more disturbing TO conse~vs-
tive sentiment. It is beyond any doubt that
some interests have sold stocks in large VOL
ume5 because Of this influence.
In so far as political developments are con.
cerned, Wall Street has followed the weeks de-
veIopments only languidly. Little actual mar.
ket influence can be traced to any such quar,sr
It may be that-quite as usual-vve may have
spasmodfc "scares" as the campaign progresses.
but few calcuIators are letting the political
outlook have much scope marketwjse.
What shows as far and away more inportan,
anpears in the growth Of better business sent-
rnent Factories are starting up Labor Is
commanding new employment Industrial sun
shine begins to penetrate afresh- Mercaasls
conditions improve Buying orders expand
Generally there is wholesome gain recorded
This becomes particularly true in New England,
so the authorities agreeing FOR varied
reasons this is business element exceptionally
favorable New England. was the first 20 FEEL
recent hard times. New England has suffered
DrOD0rt1OndtAIT A
New England revival now would be entitled 10
regard as preeminently inspiriting.
Despite it's business setback. mill Suspensions
and labor congestion. there has been nothing
disclosed fundamentally unsoUnd anywhere in
New England. It's troubles were abnormal And
acknowledgements Of it's prosperity will be but
naturaI-merely logical its leadership back to
general prosperity.
Agricultural conditions are satisfactory. We
have every prospect Of tremendous crops. They
will bring big prices. The farmer Is sure ot
continuing prosperity. And the immediats ef-
feet will be tonic, OF course, TO the whole
country.
That consunptive demands must increase
enormously IS certain beyond any matter Of
doubt. For a year past retail merchants. fol-
lowing the lead Of their wholesalers. have been
keeping stocks Of goods at very lowest possible
ebb. Hand-to-mouth policies have prevailed
throughout the whole commercial world IN
very large majority the stores OF the country
have almost bare shelves. Even a small per-
centage of revived activity, revived consunp-
tion the part Of the public. must send an
army of merchants into hurried purchases-and
any substantial development OF this sort would
be bound forthwith TO have the effect OF start
ing factory wheels a-whirling. What has ruled
in the industrial situation recently has had ID
il little of the normal What chiefly the ousl-
ness interests of the country need IS just merely
enough courage 10 emerge from a scare
One encouraging factor in the situation has
TO do with the foreign disposition toward Us
Our exports. mercantile. and agricultural are
increasing. Trade balances begin to run strong.
anew. in our favor. Moreover there is notaos
buying of American stocks for foreign account
English purchases have been on large scas
during the past fortnight. Germany and Hei-
land have been taking some OF our industrial
shares in Su bstantidf volume.
Railway stocks do not seem TO he vet resurn-
ing popularity with foreign investors II IS
unfortunate that at London and Berlin and in
Paris there seem to be apprehenSiOns that many
American railways will have TO go through fnan-
cial reorganizations. Representa- tions 10 this
effect are much exaggerated, but European
opinion ia undoubtedly influenced by sugges
tions not SO seriously considered here. The Bal
timore and Ohio dividend transaction does rot
help investment sentiment abroad.
Money market conditions are helpful to IN
terests desirous of market advances. Funds
not merely plentiful. they threaten a slut
Borrowers can command accommodation on
long time far under the legal rate. and mesey
on call is lower than at any time within wv
years past. Banking authorities agree. too'
that the prospect betokens further concessions
1t is of record however, that all the Eurepesa
Central banks are stronger in funds than :.
any time during recent years. Money marAs'
case becomes a worldwide condition.
What this means for the security market ~
of course. very clear to those who are fanll.
with what is helpful in mauiDulation cam
paigns. Technical elements are almost whoh!
on the side Of influences making for hlsae.
prices What is of most consequence upon lns
OIIcT Slue SHOWS IN Jhe PUBIC lu1lSpoSteise
come back into the market. In New YORK :.
least, there is scant sign OF any new partcPe,
ton upon the part OF outsiders. The 500
Exchange is dominated in it's current speis
uons by professionalism altogether Cofnms,
sion houses generally are empty. This does N
necessarily betoksn skepticism against Nav-
upon the part OF the investing public, perhsS
but, whatsoever the controlling cause, the ~
stentlon works effectively Brokers are hVil7
upon one another. Stocks are in large Vo
ume being taken away from the Street for D
Vestment Judgement. This is not the cheeFia.
side or thlngS current. If at any tine soon, "9
are 10 have a natural broad market sometahs
very different will have TO show from what =