New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-02-07
FINANCIAL MARKET
STOCK PRICES DOWN.
Current Levels attract InUest-
naent Purchases to q Sm0N
ETtent.

week Prices for the larger nufiloei %
investment issues declined to levels that
attracted buying for permanent iiicoiiIo
account though the extent OF suci
operations was not as great as condi-
lions warranted, owing no doubt TO the
idea that still better opportunities might
be secured in the course OF the next le"
weeks. Prices may go lower. Never
theIess. at prevailing quotations thei"
shoDId be no hesitancy on the part OF
c. uital to move into high grade invest
n7ent securities. There is nothing run
6an1entallv wrong with the business
situation. and nothing has occurred 10
lessen the intrinsic value Of American
stocks and bonds. Securities are worth
IS much to-day as investments as theE
were when their quotations were n'4
teriaIIy higher, and people who part WIN
their holdings because o. the oeaf riot
in Wall Street will make a silly olunoeF
Efforts apparently are being mace IN TIE
financial community 70 give washington
an object lesson That is, certain power
full interests who can easily weather de-
r,oralization in the stock market ana
who sre not in favor Of the aoministra-
tons policy regarding government regu~
IaIior OF corporations are helping along
a decline in prices that developed orig
inally as consequence OF the bull over
SPECULATION Of 1909 in order 70 convince
our lawmakers that the country IS IN
the verge OF q panic because OF Presi-
dent Taft's recommendations 10 Con-
q-ess on interstate commerce and anti
trust legislation.
The nation IS not worrying over legitl-
mate efforts TO compel corporations 70
obey the law, nor is there any marked
l1neasiness in business circles over the
probability OF the enactment OF laws thst
viii increase the jurisdiction OF the gov
eminent over railway and industrlal
combinations Speculative excuses 81
tie last year started the current decline.
and under the influence Of powerful in
terests who sold out their speculative
lines at fancy prices the movement is
running 20 an extreme wholly unwar-
ranted by known factors affecting prices.
Yet II is not surprising that some people
are frightened into selling their stocks at
2 sacrifice when an attorney. formerly
II the employ OF The government and
now the legal adviser Of corporations
announces in z public speech that
/ through legislation We are endeavor;nz
Il disirtegrate The business organ-za-
lions. Of the country. He predicts wide
/ soread business ruin. HIS remarks are
~ based on e sincere conception OF the
situation. but they are capable OF in
flaming the public mind to ar extent
that will react seriously on business al
fairs.
There are Joo many hired egttaCors
preaching the alleged hard lines OF the
"a boring man and there also are TOO
many hired agitauors representing the
wrongs" that are being heaped. upon
capital Corporations that are controlled
from VAL Street apparently are er1.-
glowing walking delegates 10 secure pub
l.c sympathy for them, and Incidentally
1hei- methods are unseJtIing sentiment
among investors Many factors have
contributed 70 the decline II securities
prices, Including ne calling OF loans by
speculative banks that 2 lew months ago
we're anxious 10 Ler6 their funds on al
most any kind OF collateral the scan
calous practices employed by certain IN
reresrs . adv2nce Or break prices and
-hs failure o. several Wall Street firms
and the knowledge that other houses
have been near the edge OF Bankruptcy
Influences Of this character tenc 70 drive
Ihe public our OF the market, and though
Lhe public has 2 short memory, IS L ru.e
i IS not likely that IN the present IN
stance = viii make further ventures N
rhe Street FOR long time 10 come And
unless the Stock Exchange takes irlnae-
dtare steps TO reform itself the chances
ere speculation II Wan Street vii! be
cl.-raiIed for all ZINE through tbs enact
rnent OF laws affecting stock market
business. Speculation should not be con
rrollad by law. but when speculation
runs mo gambling the abuse OF stock
exchange machinery II not corrected By
rhe Stock Exchange authorities. VIII
surely bring forth legislation that may
restrict TO : material degree the business
OF Wall Street houses and Wall Street
banks
Banks are exercising greater discrln1--
nation in the matter Of collateral against
stock market loans, and many houses IN
the Street IN the last TWO weeks haTo
been compelled 10 substitute new col
lateral and in many Instances have been
asked 70 pay of loans. which they have
been able 10 accomplish only through the
sale in the open market OF large blocks
Of securities al declining prices L the
banks rad shown the same amount 81
caution in making loans in 1903 much OF
The recent distress IN the Street would
have been avoided The chief Wall
Street interests sold most OF their specu-
larive lines at high prices and they are
now rebuying on all declines. Through
their control OF banks and trust COM
panies they are IN position 70 make
or break the stock market and when II
suits their purpose prices doubtless viii
enjoy sustained Improvement, 70 the &C
Commandment OF renewed generous offer
ings OF accommodation by the lending
/, institutions The banks will not admit
that they were in any way responsible
for the Hooking Coal and Iron episode,
vel there could not have been { move
r,ent OF the sort il the banks had not
furnished the money for the operation.
After the collapse in the price c. the
inc NJ