New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-02-01
FINANCIAL MARKETS
LOWER STOCK PRICES.
Shares Too High to Attract Public
Buying-Morey Rates Con-
tinue EGSy.
THE WEEK IN WALL STREET


element on the Stock Exchange Is SEEKING 90
weak spots in the market and endeavorlng 10
bring about a nquidatng movement % toi
these efforts have not been accompanied ps
heavy selling but it is conceivable that con
slant hann1ering may be effective in carrying
nrices TO q level that Will force fair amount
of stock into the Street and be the means OF
creating a new demand for securities Tor 'le
account of interests who have ample resources.
but who do not believe the majority OF sndL %
are attractive purchases at the prevalHhs 4uo. E
ton level The fact that the weak specuiauVe
n,,blic is not a heavy holder of stocks makes
the task of establishing prices on a cheepei
basis unusually difficult but it may De Wen 10
rote that in recent operations the pear petiIy
has shown greater ingenuity and strength IMAM
o,or6s.4 j.. .,,erv months while it has not been
o-nosed TO any material extent by the interests
who have been the chief hackers OF DUH move
rlents IN the recent past. In the last Re" "eeNS
there has been little in conditions a1ecIihs 'iie
actual worth of securities to encourage aggrss
sive dealings for higher prices. There nave oeen
no stimulating influences at home or ABROAD
n create q demand for stocks at the ruling
range, and though there has been no inQicalloli
of liquidation by substantial market 1oiio"SiN
there has been no sign on their part OF d as
nosition TO institute campaign for better quota
lions The chief banking interests IN the street
desire stability in prices, and they are oolns
nothing TO encourage bull manipulation DOUBT
1ese realizing that at this particular time, with
of cases flllv measures the improvement that
has taken place in the general situation since
the panic of 1907, and any Improvement thaC
may develop in the near future. turIheI he3'H
speculative operations for the rise would IN no
,-,,- increase the markets chances of eventually
selling at a more advanced position Inc PUBIC
is not buying for speculative account, ana rash
procedure in the market at this 1uncture may
lead TO collapse Of signlncant propolti 'IS
There are many uncertainties in the OUTLOOK
+s+ suggest the exercise of caution in specula-
tive transactions.
In last weeks market trading was relatively
light in volume in shares and heavy In oohos-
railway mortgage issues are more attractive
bo+r, conn the s,1eculative and investment point
of view than stocks and the current operations
in bonds especially in the seHi-investment class,
reflect knowledge of this fact by the rank ana
file of Wall Street The high grade shares IN
recent dealings have been heavy IN tone. Whlie
there has been considerable speculation 1ot
higher prices In the second grade group out
even the latter has reached a level that no
longer appeals to careful traders. A readJust-
ment of prices to lower level would attract
better demand and increase commission mousse
business which at the moment is lighter than
il has been at any time in many weeks Whle II
would furnish a profitable opportunity Tor the
iuyestrne nt of idle money in first class issues
which now do not induce purchases by people
who are anxious to secure a big return on their
money. Easy money has failed TO bring about
q January rise in stocks, because prices nave
been too high to encourage the placement OF
capitaL The large institutions have been gen
erous buyers of bonds, and bulls on stocks main
tain that this movement will extend TO shares,
but from current indications it looks as II some
highly stimulating development would be re
auired to induce extensive operations from the
current range Of quotations in this department
of the market Some traders figuring on a
lower price level in the future, and a good
sized advance about the time of the Taft in
auguration- No one can tell with any degree OF
what the next move IN the market VIII !
be- not even the men who have vast financial |
at their command but the man who !
has confidence in his country and can realize |
that in all human certainty the eventual course |
Of affairs in our industries and finances VIII |
be on lines that will place the United states |
anon 2 higher plane of prosperity need feel no !
,lneasiness over the money that he may nave |
invested In the high grade securities that repre-
sent the great transportation and industrial com
panies The country is not going backward. and |
the present slow growth Of business does not |
foreshadow another period Of industrial depres- |
sion
The metal trades working on basis FAR |
under normal. while the same thing may be |
said Of the majority Of business enterprises in !
the United States Business men, however ad- |
nit that they have passed through the day3 OF |
worry and are now looking forward for better |
conditions IN the future based on the strength |
Of fundamental factors, on the increasing gold |
production, Oh the wealth OF the nation as the |
agricultural supply house Of the world and on |
the expanding tendency OF our railroads. which |
means the opening up of new fields for manu- |
mining and farming activities Our /
are not to be wiped out by tariff |
adjustment. but capital is waiting to find out |
the nature Of the changes before making ex- |
tensive commitments It Is to be hoped there |
viii be a real and speedy readjustment OF tariff |
schedules and that following legislation Of this
character our lawmakers will take the currency /
in hand and give the country scientific monetary |
reform that will eliminate for all time the bad
features of a system which has been such an |
factor in accentuating. II not devel- |
oping money and business disturbances. Trade |
reports show progress in many lines. but disap- |
pointing results in copper and steel The pro- |
duction Of pig iron and copper is in excess OF |
but il is not possible to conceive /
that this condition will last for any extended |
length of time especially the producers of /
the metals already nave received assurances |
from the general tendency of affairs in this |
country that the actual necessities of consumers
must gradually increase. In view Of the fact |
that the iron and steel trade for many months |
has been moving on a basis Of from 40 TO 90 per |
cent of normal the quarterly report Of the |
United States Steel Corporation, which |
made public last week. presents no reason for |
uneasiness on the part OF the holders Of the !
concerns securities. After all charges and divt-
dends there was a surplus for the three months |
# s51A2456. which compares with s5.152, 023 in |
rle preceding quarter and S9,359,274 in the cor
esponding time in the year before The United |
States Steel Corporation has proved its ability |
TO go through hard times with earnings in eH- |
cess of dividend requirements while 1t has made |
the fact plain that it able to appropriate large
sums from earnings for the upbuilding Of its !
property without deprivlng investors IN It's Sc |
curities Of their income even in periods OF IN
1ustrial depression. When the company returns |
to the basis OF its full earning capacity there |
Viii be a larger dividend for the owners OF the |
common stock.
Rates for loans in all departments Of the |
money market remained al an extremely easy /