New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-08-01
FINANCIAL MARKET
Bank Conditions Here Show Vast
Improvement.

chief industrials presented a loss of
24.72 points, comparing with a loss for
the railroads from the best average hg-
ure Of 1909 of 2S.S7. and q loss for the
industrials OF 1854. The highest prices
ever made on the Stock Exchange were
reported in January, 1906, when the
prominent railroads reached an average
of 1885, against last weeks low or
1853 and the leading industrials stood
at 1O3, against 1852 In the week just
closed The low levels on the current
movement, however, are 241S points
above the 1907 panic average for the
railroad issues and 20.62 points for the
industrial stocks. the latter being 2.45
points under the low Of September, 1908.
and the railroads ZIG points higher than
the 1908 low figures. Sound stocks are
selling on an attractive investment basis,
and in the event of & general lowering
of dividends, which does not appear
probable. the declines that would ac-
company such q movement would still
make our securities excellent income
vielders. The stock market is much
stronger technically than IT has been at
any time in the last twelve months, but
this fact does not preclude the possibility
of further speculative liquidation. De
moralization in prices last week was not
due to bear pressure, but to forced liqui-
dalton, and Il Is believed in many quar-
tiers that in spite Of the extensive selling
already reported further liquidation Will
be encountered before sustained i'm
provement in quotations develops.
Certain large interests that were I'M
duly extended in the stock market came
to grief last week. Certain people who
came into the Street q year ago with the
purpose Of gaining foothold in various
American railroad properties met their
Waterloo in Tuesdays slump in prices.
the result OF their operations intrench-
ing control of the companies in question
more strongly in the hands Of bankers
who had been waiting for the opportune
time to play their trump card in a game
that neophytes thought was wholly in
their favor. There was q veritabie
slaughter in Rock Island, Missouri Pa
cific and Wabash in the local market
and in Lehigh Valley IN Philadelphia, a
large amount Of the last named stock
passing to Morgan ownership, with the
Reid-Moore holdings materially reduced.
Our great banking and railroad inter
ests do not look kindly upon control of
railroad properties by spectators, and
the grip that a number Of the latter
thought they had upon different COM
panies has been loosened by the market
movements of recent weeks, thanks to
the resources controlled by the country's
real financiers and the development of
conditions favorable TO operations for
lower prices on the Stock Exchange.
The New York banks have been calling
loans extensively on speculative ac-
counts, and a tremendous amount of
stock against speculative loans has been
thrown upon the market AS a conse-
quenCe the banks are stronger, stocks
are in better hands and overenthusiastic
Spectators have suffered serious losses
There are many reasons why the sub
stantial interests may not seek to hiring
about an active bull movement at the
present time. There are too many IN
tive bull trading at the moment, but
there is nothing in the situation that
iustifies peSSimisTn over the future of
intrinsic values. The crops are going
through 3 critical period. with indica
lions Of some deterioration in the last
week IN corn and cotton. Bank condi-
tons outside OF New York are not alto
YJ7.
usual disposition in business circles to
shorten sail pending the outcome Of the
Congressional election. Railroads must
readjust their affairs 10 the new power
vested IN the Interstate Commerce Com
mission, and what the effect Of this vast
power viii be upon the transportation
industry remains a mystery. Further
more, there will be uneasiness in bust
ness and financial circles regarding the
attitude of the Supreme Court. which
practically viii be reorsaniZed as to
members IN the autumn, on great cor
porate questions as involved in the
STANDARD Oil and American Tobacco
litigation, while notwithstanding the
current ease in money and the strong
position of the local banks Wall Street
viii hardly be willing TO so ahead with
q bull movement on the assumption that
there Will be ample funds for speCuia
ton and for harvest requirements. The
whole country apparently must readjust
itself TO coming new conditions.
Business conditions are not bad, and
there are no indications of real indus
trial depression. There are however
uncertainties that are inducing caution
in the mercantile and financial com
nunities which eventually will be re-
leCted in substantial Improvement in all
lines. Actual holders Of American in
vestment securities can find no cause
for apprehension in the recent course Of
market prices. or in the fundamental
factors governing Investment values
When our greatest industry, outside Of
the railroad business. can earn enormous
profits in spite Of operating % per cent
under capacity, there is no excuse for
bear talk on the country. It was once
said that the iron and steel industry
either was a prince or pauper. At the
time the whole statement was true, but
conditions have changed since then 10
an extent that 1t is difficult to conceive
Of the development Of a period when the
iron and steel trade will go in the rags
of a beggar. The United States Steel
Corporation was formed in 1902, and III