New-York tribune., 1908-05-11
THE WEEK IN WALL STREET.

kst recession believing that it was certain 10
occur because the continuous advance during tue
previous three weeks had amply discounted the
Improvement which had been made in general
business conditions, have not yet seen their eA-
pectation realized. Instead, the market during
the week lust ended has made further progress
toward higher levels, ending the perlod WIN
prices in the main the best of the year 1here
has been covering of shorts a good scale as
the advance has proceeded, but the 1lnpelllhS
force under the market has been the heaVy puy-
ing for account of powerful interests pusiis
which is apparently related to the rallroau
financing projects which are soon 10 De pre-
sented in the form of bond issues; for a strong
stock market is an important aid in the distrlbu-
ton of bonds. Therefore. it may be that even
higher nrices will be seen this week and that the
mace will not ease until after the bringing out OF
the Union Pacific bond issue. which is expected
TO he for $50 600. 900 The sweeping success OF
the PENNSYLVANIA Railroads loan. in addition 10
providing for the company funds for the carry
ing on its Improvement work, distinctly pen
Gifted the general situation. in demonstrating
that tn. investing public had regained confidence
sufficiently to buy high grade securities ana Ie
offering TO be made by the Union Pac1hc Is eN-
pected to have like double significance Slllce
tn. PENNSYLVANIA issue was brought out the
,ond market has been increasingly active, at ad-
vancing prices. the sales on Friday OF last Week
having been $4,000 600 par value, the largest
dsy's business in many months, While IN the TWO
hours of trading on the following day the trans
MANY ra aiIroads are in need of money and many
now that investors are once more entering the
bond market will offer 10 those investors an
onnortunitv TO purchase their seCur1ues- Inc
response however. will be proportioned TO the
attractiveness of the several issues. from the
point Of view first of safety and then of yield.
in comparison with the high standard or the
PENNSYLVANIA bonds. Few of the issues mere
after 10 be presented. II may be ADDED VIII nave
the advantage of a foreign market, as did the
PENNSYLVANIA loan and as the Union Pacific issue
is expected to have.
Stasnation continues in trade and industry
throughout the country, and nowhere IS any
considerable increase in production or enlarge
rlent of buying demand reported. Yet the feel
ing is no longer that of unrelieved depression
In the textile industry, for example, although
the mills are still running at greatly reduced
capacity, sentiment Is said to be much more
cheerful The steel industry is not reviving as
Vet but if the efforts of the railroads TO avail
themselves of the extreme money market ease
for floating bond issues shall meet with success
there will before long be funds in hand when
will be used in part for the purchase of steel
rails and structural steel 4 beginning in the
direction of renewed general buying the part
Of the railroads appears to have been made III
the orders placed last week by several roads TO-
locomotives There has been no change made
bv the steel manufacturing companies in their
price schedules. and the impression is wide
spread that concessions in prices would be
quickly followed by the placing of large orders
for rails and other material. although until bust
ness shall revive and returns from freight traf-
fc shall increase the railroads are not likely TO
Judge il exredien- to spend much money for pur-
poses other than those absolutely necessary
The pig iron makers. ar their adjourned meet
ing last week. announced that agreement ex-
listed for maintaining rates. and accordingly can
cut prices al will in the competition for
business-as indeed they have been for some
time reported TO be doing.
The railroads. on the other hand. have been
eherishins the hope of being able to increase
their revenues in time OF profound business
depression. when almost all commodities are de
Clinng in price. by raising their rates for the
carriage Of those commodities. That plan.
novelty in political economy, could not be made
effective even though sanctioned by the Wash
ington authorities. unless adopted by all of the
roads in given territory. and its enforcement
in the face Of opposition of shippers would cause
recrudescence of the anti-railroad agitation,
which Of late has pretty we'll subsided. There
is reason to believe that the small roads in
trunk line territory have not been brought into
line in support of the proposition, and from
various points in the last few days have come
reports of the shippers raising angry protests;
and perhaps for these reasons the trunk line
presidents, while affirming their belief in the
soundness of the plan, have concluded not to
attempt to carry it into operation until the late
fall which probably means not until prices gen
orally shall be once more on the up grade.
The two great uncertainties the favorable res
tribute to the full restoration of confidence and
the relatively speedy return of prosperity the
crops and the Presidential election. The Pres
idential campaign is not yet under way but the
present outlook favors the nomination by the
Republican party of man whose selection
would give general reinsurance and Of whose
election little doubt is expressed in any well
informed quarter For the crops the prospect
is at this date excellent, although no man can
tell what a season may bring forth in the way
Of or insects
Winter wheat however, is close to the day when
danger to the growing crop may be declared
past, and the government indication of May /,
with it's estimate of 42S,0O0,000 bushels,
pairing with last years harvest of 409, 100000
bushels virtually assures bOunteouS crop
while weather conditions are yet favorable
10 the prospects of spring wheat and the vast
corn crop, and of cotton, for the surplus of all
of which crops there is likely to be q foreign
demand
Here and there are indications of a lifting of
the cloud OF commercial and industrial depres-
sion, of last weeks signs being the record
ing of a smaller number of failures than for
several weeks preceding, and bank Clearings
also gave some encouragement in their rather
larger volume. Against these considerations is
the fact of the continuance Of heavy receipts of
cash from interior points, sent here because
it cannot be proftaby employed at home. The
money conditions those always experienced
after panic-idle funds heaped up until the
amount is enormous; then with the slow return
ing Of confidence the cautious and discri1nnat-
ing investment Of some OF the money in bonds
the stage now reached; then strength and
tivity and a broadening tendency in the stock
market, with the continuance of the growth of
confidence, and finally the venturing again Of
money in industrial and commercial commit
ments and the full revival Of business. AS the
country is much larger in business way
than in previous post panic periods the store
of idle funds in the banks is probably no heav-
ier relatively than at corresponding dates in
the past. and the size Of the surplus reserve Of
the Associated Banks Of New York. now in ex-
Lafs IL T.