New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-15
me Financial World

curity market movement has 'As prssu,
taoiishment of new high reco~, 1A The daily J.
uonS OF many important stool N the Quot.
ray. the eri'lcai element Of war shis vsv
1000 Tor distrust The me,s gu Street ana.
'raelnc or Southern Pacifc ase that ro,0.
steer common or New Yort r. oHted Stata,
Vahced 10 fresh high level =. eAlia has aS-
ior vigorous argument favori-,- "aoe the bas,,
sueh critics fail TO take ;n+e action VIA,
patent TACT that there is noth, eeeoaht Is tbs
MARKET action Historic precsd.s. new IN surs
"neh any particular stock n.~l reveais th.,
point where it's dividend rot 's beyond ina
esases 10 De speculative V,ithHa Is assured
tes, eIo present generation a n,--ah Tie menar-
Street nI',. vanished from the sl of notable
SIeeI illustrative EXAMINES ~ area OF Wan
Chicaso. Burlington and CniToare furnished -.
tIlSaso, ROCK Island and P aciSS,. AaAe Shore an
s SeooAS has become the basis 40 Zach Of thsss
anv Of the TX Va.ue and make snaa- ,sseclrity
iofGe or mounting quotations. ISSUES BY sheer
Nedleu value nave also disc anea Upon "a
3ptGuiatIVe held-as, for exsmnIsd rom ms
ee, DIV a'4u estern, Central az SNsAAssre
SSeeS, DslaWafe and Hudson and ~ ~ New Jer.
northwestern. Every one ~ tt az chicago ana
80, a. just as Mighty specuIatfva ss9ess Years
W.. W. street IaVoFites of TO-DAY e. any Of the
thein mas disappeared. either ~, VERY one o.
INTO bonds or by positive Iass, ssedhsfornatier
s.rols boxes " investors Sneerfss.iap IN the
street Knows them no more aeveay Wal
i go. 10. q Ia'ir assumption that kipdrsa
SViLS Oh to-uay IN other irnp0rtsn4 e actor
rake the status OF Union Paei,so \. securities,
Parent that the steady p~oeresvie p :. y not an
rom the 1904 panic DotEC OF bar - ms stock
tis Twice that value is the dsl;soy
appreciation by Informed capitalists a, a[nioefsa
values created under Hartman ad,' =. me vast
which has taken full ADVANTAGE - illustration.
miraculous growth Of Western ana ls dmoSI
IN '0 10y ana may It not for similar -
10 Gfa f4r-.
testlfyinS 70 accurate inside l,novlsS lung
Immense value OF the equities vesfsJ ~ ne
Reading company? These two stocks ar - .hs
merely by way OF exampIe-in MAN. os az easss
transformation process from, snsc,,i liners the
vestmeht conditions is. beyond doubt. n ss .,
operation. " seuEe
Hence. it follows that the nera eac.
high records holds no threat-that 4. IeW
demonstration of a purely natural roaa : Is oat
wise new That IL is history reusatins itssa, ~ ~
orderly and logical fashion Their i 80, 49,
IN the new high prices so far recorded 10 sssn
apprehension, provided those priegs ars $3.50
mate assertion Of assets and earnings II 80
as N these quotations were the result ~ ins.so.
forced by hamboyant speculation Every I ss,.
mission house in Wall Street eertiaes "a ~ I'm
that public speculation has been a nesiy;hs.
quantity for al least the last two years-Sas
lstion during that time having been stric,lT,os
nned 20 professional operations. But while nnS
Tic speculation has not appeared puhlir i,I 49,
ment in the quietest and most or1erIv r,a.
has been taking intelligent advantage ~ -
bargain opportunities presented So va sas ~
comforting situation Of new high prices attained
Dgactual Iudlelous buying. There are No arg
public speculative holdings depending anon ma
Slns-subJect 70 unreasonable fright when any,
thing even slightly untoward occurs.
Thus the main contention OF the hear rar.,
that prices must go down simply because ~,
are az new high levels is clearly founded an
fallacy. There is nothing 70 be afraid ~ m
the high points on to-da.-they ars ths trur
and Hover OF many years hard plswng-o'
many years sincere and Intelligent apbai7dIns
or creative foTces-hamDered now ana again ~
distressful happenings, but all the while whols.
must finally recognize that new conditions goyy
ern
Wall Streets nterest-its nervousness. Dis
quietude-was amply in evidence at the s.sss
OF Fridays market. Union Pacific issues hars
made rapid upward rushes: and SATURDAYS
market opened with anxiety evident, particularly
in commission house circles II has been 50
long since there was actual Commission broksr.
age OF any importance in Wall Street thar any
scarecrow can now upset eqUanimilv. The sv-
erase commission broker upon appearances OF
new customer now Is almost overcoms BY won
derments and from the start OF any new account
he is sensitive 10 the point OF extreme nervous
ness. For months there have been 40 custom
ers--no outside public participating in the So
curlty market: and as this changes, as new Gus
toners arrive. become active because they sTs
confident. realizing national business rsvivifcs-
tion there forthwith DEVELOPS a strength ana
breadth In the stock market beyond aHght that
We have known for years
New public interest in security Investments
has been so much in evidence during the past
fortnight, so aggressive during the past wssk
that in this one very element alone is found
the market as a whole displays. There was
waiting Tor the tariff. there was waiting for
crop certiscation and there was waiting for
evidence OF business revival-and batter hus.
biggest
all have come into the record. WhsreaL and N
mere logical forward stsp. the public has come
coincldentally into Wall Street Columns W.T..
ten IN eIucldaEon would not make the Slsuarien
clearer The public that was patient is an IN
Vestment public which has become active
They who belittle this development, who sell
stocks short, upon cynical theories about maaiP-
ulation. are bound 10 find themselves paying
penalties-for Just as over and over again IN
this review has been insisted upon the upou.la
ing OF this market strength is 5ulwarked y 10
sincerity Of financiers who are pseresS-J. FER
pont Morgan their leader.
In some ultra-cOnservatve quarters therS u
apprehension THAI continuing activity aaa
mounting prices may result in situatioa wnieh
will be handicapped b. money market si'ia
gency. To some extent agitation OF the mensv
market situation may be traceable 90 bank man.
ayers who thereby hope 70 help the earnings o.
their institutions. IL being not a new straIes
TO mark w call rates as basis Cor psrsEaaias
borrowers to make looms on time. Thls MAJ
ner OF banking campaign is always az ms 80
sou of the wear helped uy the vectiatlen WIZ,
forever comes from the West that the sise@
crops OF the year can be harvested ana m sIns
ed Independent of the Eastern money mathe"
Yet this year. as last year. as 10 every ysa W..
New York and New England viii nave 20 svsa
in hal ont SfaTu
during the crOp market season. This year 49, 49,
will be sequel TO harvest, however. raisIhs R5+h
teouS Western prosperity 10 heights never , 49,
erto reached This prosperity cannot De "a. a.,
ICED Ii is national IN its Importance ana Ell
ence-and the direct bearing OF IL upon .,o ,,s
Street conditiOns-upOn Investment aoSVl p,s,sa
may be counted upon now 10 reaeh sOAsss'
heretofore unparalleled