New-York tribune., 1908-01-12
The Financial World.

Monetary conditions unproFes Cohrnercfl
! conditions improve. Industrial conditions I'm
prove-some tangible Improvement shows gen.
orally throughout the business world
/ Wall Street is hurrying into enthusiasm
| Perhaps Wall Street is going trife fast. Yes
/ terday's stock market was buoyanr beyond any
exhibit known in year. There was activity as
well as strength. And what was notably
couragfng appears in the character OF the
curifies which took leadership. St Paul. Union
Pacific and Southern Pacific, representing thu
interests Of Mr. Hartman and Standard on as
sociates. had conspicuOusness; Northern Pacific,
"a a Morgan favOrite. had signifyfns prorni-
nence. Baltimore & Ohio joined Reading IN
manifestation Of those extraordinary develop
uents now almost ready for announcement IN
the coal trade; indeed, scarcely a standard stock
Jagged.
Such substantial advances as have been
scored indicate forcefuIIy that the market has
become bare OF stocks-the pressure or tnar
oversuppIy Of stocks which governed largely tne
markets recent panic course being succsecso
Fbv an insistent investment demand We heard
much month two ago Of the vast absorption
Of stocks by the outright purchase Of small lots:
and IL is not improbable that even the biggest
[ Aeures made in this regard fail really snort OF
what the tremendous total reached In the more
recent buying OF stocks there has been the oiI-
ferent aspect Of transactions carefully disguised
by operators Of greater individual importance
this SEQUEL TO the open activity OF the army OK
small investment buyers becoming factor el-
fectfve not only in stocks but in bonds
Betterrnent In the bond market at this 1unct-
ure ts Of almost first importance Though not
much publicly discussed. close observers OF mar
ket conditions have for months realized tna&
overpIusage OF bonds In the hands OF unosr
writing syndicates was a peril poinr Anu u
became distinctly discouraging when, during the
last month or two, there were spurts OF Hat ASN
improvement without participation In the move
uent by even the highest grade OF BONDS
1t is consequential, therefore, tnat tne gains
of this week show In the bond list as well as
In stocks-and this is not more-nothing hAs
an rnr1ch-evfdent in Stock Exchange uansac-
ttons than in the broader market over banking
counters Thus in the view Of market stu
dents who are ultra conservative this MARKET
start has a quality IN it not before known "a
many day
Yesterdays bank statement was In every
feature inspiriting. Surplus reserve deficits ciS-
appear And throughout Wall Street, following
this Clearing House statement. there yesterday
spread actual aggressive confidence In the m
ninence of period Of cheap money IN Ialr
ness It viii be borne In mind. however. that not
all the banking leaders here are quite COM
rnitted to unqualified optimism; some OF them
point out that excesses on the Stock Exchange
might quickly run into such demands for loan
accommodations as could enbarras5 DorroWeES
again But what virtually all agree Is that tns
railroads and other great corporations can now
reasonably expect to command at living rates
accommodation which during the past half year
thew could not obtain at all The Importance
of this reaches the labor world: and. after al,
vTe NAV for a time escape dull Industrial times
though 1t IS not true that conservative hnan-
ciers count upon an tnmediate approach 10 q
normal manufacturing status
Diminished volume OF trade, either IN tns
commercial Industrial world. though. viii %
construed for a season actually helpful 10
Wall Street activity and prices-on the theorP
that funds so released will have obvious adj
vantages in the stock market, so long at least
as the exceptional bargain quotations prevail
some security market records support this line
Of argument; but they who have security mar
ket value most at heart viii hardly become lons
enthusiastic absOrbers or STOCKS because tners
are idleness and unprohtableness IN the senern
business world
One dIsagreeabls incident Of the week was in
the announcement OF a Chicago Great Western
receivership though neither among railway
managers IN the banking community can
there be found much surprise. Mr.. Sttckney has
made royal fight; he has withstood adverse
campaigning more comprehensive tnan found In
any other railway quarter during recent years.
Investment confidence IN this one mans inreS-
bankers Of Europe have partic1pated-was
through every emergency sufficient to keep HIS
system from defaults, and only world-wids
money stringency could overwhelm him As tn
Great Westerns future much speculation Is
likely to be tnduIged- II 1t may not be con-
tinued as an independent property, natural
landing place will be in alliance-or even COM
plete absorption by the Canadian Pacihcs aux1l-
iary the 500 System What such an ALLIANCES
could mean for the 500 and Canadian Pacific
Is not hard to fgure-chiefy conspicuous IN the
list OF advantages being direct entrance into
Chicago
Throughout the greater part OF the week
Reading has been the market leader. Primarily,
the remarkably strong position Of the anthracite
coal trade. But buying OF the stock has also
been induced by the impression gaining ground
in certain quarters that there viii be Congress
sionaI legislation postpOning the compulsory
separation of the coal mining business from
railroad operations Under any circumstances
the fact stands out that combined Reading earn
ings are many times greater than the per cent
dividend which the company now pays And
from the point of view Of the shareholder IL -
not of consequence whether final distribution OF
dendS or appOrtiOnuent of assets. Actual accu-
mulated value Is obvious. Naturally Reading
prominence in the market directs attention @
the comparatively low prices OF the other coal
erS. Baltimore & Ohio, for example enjoys q
vast coal traffic in addition TO its great miscel-
laneOus business OF the premier trunk
lines Ii can be stated upon authority that yes
terdays activity in Baltimore * Ohio resulted
whose operations have recently advanced Read
ing by reason of Wholesale investment RbsOrp-
ton. As in Reading. in Baltimore & OhlCs
an important official announcement IS close az