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The sun. [volume] (New York [N.Y.]) 1833-1916, February 14, 1910, Image 8

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Persistent link: https://chroniclingamerica.loc.gov/lccn/sn83030272/1910-02-14/ed-1/seq-8/

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It could at a toast ka be aald at th the close o olast of ofJut oflait
last week that at ao other time since lno the thedeoUalag themOTel the4e11nIng
deoUalag raoremeat mOTel t In securities began beganlatbe bepnlaetOrepa began1Ee
latbe laetOrepa forepart of October last year waa waathere wasthe I Ithere
there found a greater number of people peoplein
in the financial district d1 riCJt who are aa a rule ruleuooeeeful ruleauooeeerul rulesuooeeefi1
uooeeeful in their builaeea operations operationsand
and correct in their TlfJWWof vIe ritrtrn of markets marketsand
and prior expressing the opinion that thatprice thatprices
price of stocks bad la a large number of ofinstances oflaataaoes ofIaatanoes
instances reached lords at which they theyoould theyoould theycould
oould b be sailed cheap eYeD considering consideringall O afderiricaU
all the th adverse argument that oaa be bebrought bebrou bebrought
brought brou t to bear against the stock market marketat tarketat
at thj th pmeat time Possibly this tilt state statemeat atatemeBt statemeat
meat referred more strictly to tha level larelof lsnlor
of pros prio a made de In the aemipaalo In the thestock theltock thestock
stock market that prevalleda a jwreek week ago agothan agothan aCo aCothan
than to the range of ofnJUfJ8lhcnm ralues shown la the thereooTerjr thereooTerr thereooYeiy
reooTerjr later on But the general truth truthof
of the declaration was W a stIll 1tDl1ma1ntabwd 1tDl1ma1ntabwdandltwaa maintained maintainedand
and andltwaa it itwa was undoubtedly undoubted1rbaaedobleftTnpon undoubted1rbaaedobleftTnponreoognItlon based chiefly upon uponrecognition uponrecognition
recognition of the fact that a great relume relumeof chunoot
of speculative liquidation Uquldtlonthat that had b d been beenoverhanging baeDoverhaaglnC beenoverhanging
overhanging the market D1 Lrket had hadbMD been com completed oomP1efe oonplete4 ¬
pleted < Prices might vibrate back and andforth andforth andforth
forth for a considerable condd rable period and the thestock thestock thestock
stock market Itself become dull for forIrreter a agreater aEreater
greater or less Ilength length of time as it usually usuallydoes uauallrdoea uiuallydoe
does following foU < ninga a time of demoralisation demoralisationbut
but b t quotations > n8 of stocks were neverthe nevertheless DeTertheleesat ¬
less leesat at points lnta that th t attracted Investment Investmentpurchases brreatlnentpurchases InVeStmenZpurchases
purchases for substantial aublltaDtlAlreaaon reasons oi oimerit of ofmerit ofmerit
merit and valuo T luo It was WnIIadmittec1 admitted that thatthese thattheee thatthese
these prices prl cs I were still away awayahove above those thoserecorded thoeereoorded thoserecorded
recorded in the 1807 panic But no oae oaeasserted oaeauerted casasserted
asserted that thatoondltlona conditions were at an alllite alllitethoae like likethose likethooe
those of the 1907 panic or in any way such suchaa uohILl
aa a to excite fears fea for the business future futureIn
In fact the th one decided resemblance to tothe tothe tothe
the situation In 1407 D07 rests reatllln in the circum circumstance clroUmatanoe circumstance ¬
stance that the condition of affairs that thatnow thatnow thatnow
now prevails fairly fahi approximates the thestability th thtablUty thstability
stability established as the result of the thelD07
1607 purging and bloodletting Presum Presumably Preeumably Presumably ¬
ably the speculative short interest In the themarket themarket themarket
market rose to large proportions on Mon Monday Monday Monday ¬
day a week ago and the retreat rotrmtof of thfa thfashort thJashort thkohort
short Interest accounted in no small smaldegree smalldegree maUdegree
degree for the strength shown through throughhe throughlierestofthweek
he lierestofthweek rest of ofth the week But Buttherfeinthe Buttherfeinthemarket the rise in the themarket them1rket
market last week was not merely a cov covering oovering covering ¬
ering of shorts It was based prima primarily prlmarlly primarily ¬
rily upon the entrance into the market marketupon marketupon marketupon
upon a large scale on Monday Mon y and Tues Tuesday Tuesday Tuesday ¬
day of Inveetment buying by savings savingibanks BaT savingsbanks IgI IgIbanks
banks trust companies and financial financialInstitutions ftnanclallaatltutlona finandalinstitutions
Institutions of the first grade The pointhad pointhad point pointbad
had been be n reached where investment was waswilling waawilling waswilling
willing to ° take hold of the stock market marketIn
In dead earnest It Wall found that there therewere therewere therewere
were levels at which the various Wash Washnjton W WOhtugton ah ahinlton
njton scares and whatever other drawbacks draw chawbacks drawbacks ¬
backs have recently t presented themselves themselvesin > e eIn
In in the financial t1na 1clal situation could o uld be die discounted diefIOunWd diecounted ¬
counted and overdlsoounted so far farvalue as asvalues asvalue
value were Wefeoonoerned concerned This was the thereq thereqdemonatratlon rea reademonstration req reqdemonstration
demonstration of financial interest in inlast InJut Inlast
last week five business days daysDoubtless dayDoubtl daysDoubtless
Doubtless Doubtl from a strictly stock atocltmarket atocltmarketpoint market marketpoint marketpoint
point of civiow view the most notable notableckange notableckangefor change changefor
for the better that has ha pome ooip 1p about abOutfa abOutfatbe ab ut is isthe 1 1the
the thoroughgoing improvement in l the themoney themoney themoney
money situation Most bankers tiU be believe believe be11ev ¬
lieve that the business bu sln inees prospects for the theyear theye thayear
year ye r are such that they will make more moremoney moremone moremoney
mone money by bylendlng lending money moneylnthe In Inthe the year yearigio yearigiothan 1910 1910than 11110than
than they did in lOG that Is to say that thatthey thatthey thatthey
they will get higher rates for the theuaa use of oftheir ofth61r oftheir
their funds But so drastic has been beenthe beenthe beenthe
the market liquidation and such has been beenh beenthcb beenthe
thcb the h check k even If temporary tempo rr to general generaljustness generalbusln generalbusiness
justness busln expansion also al ° ° afforded by this thisthat thlathAt thistiat
that it is now reasonably clear that what whatever whatever whatever ¬
ever may happen later on In the year yeara
a period iod of very easy eaS money confront confrontus
us When money for foralmO six months ths use usecan useCAn usecan
can be borrowed at 4 4ier Percentp per cent and for forover forover forover
over the year at 4 per percent cent talk of tight tightmoney tightmoney tightmoney
money entirely disappears as a financial financialactor flnanclalfactor financialfactor
factor In Frldays bank statement the theactual theactual theactual
actual surplus reserve was reported as aswing asbeing asbeing
being K84907ZS 49Ofl5 a very large l rge sum for forhe forthe forthe
the he timo of year and nearly three times timesgreater tlmeeKrea timesgreater
Krea greater r than that shown at the th same data datan datIn
In n 1908 and that a species of o international internationalmoney Internationalmoney internationalmoney
money plethora exists is shown in the thereduction thereductlonof thereduction
reduction of discount d unt rates ordered ordflredlaAt ordflredlaAtweek last laatweek lastweek
week by the Bank of England and d the theBank lh lhBank theBank
Bank of Germany In Paris too money moneyj
14 j again accumulating We should logi logically logly logicallyezpecttbereforeindnetIme
cally callyezpecttbereforeindnetIme y expect therefore in due time and In Inthe Intbt Intbe
the not far di dlatan tant future a picking up upn upIn upIn
In n the goneral bond market marketand and some somesigns someIIlgna somesigns
signs of improvement in this direction directionwere direcIonwere
were indeed apparent last week In the theilgher thehigher thehigher
higher quotations quot Uonn for New York city cityxinds citybonds citybonds
bonds and arKiln In a larger general Inquiry Inquiryfor
for or Investment InvestmentneourltieI Beourities in bond houses housesIt
It Is I not to be forgotten that investment investmentn
l In n the market was practically stopped stoppedsix
six month ago go through throu h well grounded groundedapprehensions groundedapproheuloM groundedapprehensions
apprehensions that the money situation situationwas Itu tlon tlonwILli
was becoming precarious Nothing Nothlnbetter is isbetter isbetter
better known however than that alter altera
a certain length l of time tI e money grows growsrestive groWilretltlve grownrestive
restive after lying in banks and trust trustcompanies truatcompanies trustcompanies
companies at a low rate of interest or orn orIn orin
In n many cases at no interest Ilter et at all It Itwill Itwill Itwill
will under such circumstances soon soonbegin IIOOnbegin soonbegin
begin to force itself Into Investment chan channels channels cuinnols ¬
nels that Is Islf If the general financial peel posllon poltlon peeltion
lon is held to be be60Und sound It Is commonly commonlyBald
Bald In Wall Street that as matters stand standthe bthndthe tandthe
the only really unfavorable aspect ILlp Ct of ofhe ofthe ofthe
the situation is uncertainty as to the theJupreme theSupreme theSupreme
Supreme Court decisions In the American AmericanTobacco AmeilcanTobacco me ican icanTob
Tobacco Tob ooo and Standard Oil cases Yet Yeteven Yeteven Yeteven
even here confidence and a disposition dispositionotake dlapoeitlontotakeau dispositiontotake
otake totakeau an optimistic view Is prominently prominentlydlxcloeing promlnentJydlKCIOfinglt8elf prominentlydliclosing
dlxcloeing dlKCIOfinglt8elf itself Wall Street Is now re remembering romfm tomembering ¬
membering mfm rlng what It did not at all aUtilak aUtilakof think thinkof
of In the tbedaya days of its hysteria hYII rla that the themajority themajority themajority
majority of decisions of the Supreme SupremeJourt SupremoCourt SupremeCourt
Court In construing the antitrust antl truat law lawlave lawhave lawhave
have lave at least l at In recent recentyears years been wholly whollyalong whoUyalo whollyalong
along alo g the line of maintaining that mere merecombinations mere mereCombinAtions merecombinations
combinations of corporations were not notn notIn notIn
In n restraint re tralnt of trade and hence illegal illegaland fUesaland Illegaland
and that It WAS 115 only an effort to control controlrices controlprlcetonthe contrulprices
prlcetonthe prices > rices on the part of such lI ch a combination combinationhat
hat th t wasprohlblted by thq statute There Thereare Thereare
are abundant reasons r for the hope and andwlief andbelief andbelief
belief that whatever disposition the theSupreme theSupreme theSupreme
Supreme Court sees M es fit to make of tho thoAmerican thoAmerican theAmeican
American Tobacco and Standard 011 Oilcompanies 011companies 011companies
companies it will wUlpoint point out outa a way and andwith andwith andwith
with greater definiteness than It ever everlas everhaa everbaa
baa las done before for the corporate organi organizations organlzatlons organirations ¬
rations of the land whether or not these thesemay thesemay thesemay
may bo In n themselves combinations of ofsubordinate ofsubordln ofeubordlnate
subordinate t corporations corp raUoDs to conduct their theirbusiness theirbualn theiruaineea
bualn business lawfully lawfullyAa
Aa every intelligent person J > fr on expected expectedwould upectedwould expectedwould
would be the caw a certain amount of ofcurtailment ofcurtillmeDt ofoUrt3IlmeDt
curtailment of general business over ov overc r the iheoounfry theo
o oounfry unry Is now evident It was AB not In Inh IftMnnturo inthe
tMnnturo the h nature of things thin that such a fall in inha Inthe Inthe
the stock market as has t iken tsk place could couldmve couldhae couldhave
have mve occurred without affecting general goneraltulnM generalbualMM generalbusiness
business > In some way An event eventot of this thisdntlfc thIskJn thiskIncUi
kJn kIncUi dntlfc < Ji tlio til Inovltablo effect of making makingbuilncBs
builncBs people cautious In placing new neworders neword ne neordri
orders ord ri and of even bringing about a cer cerxln certalnamollnt cottzinamount
talnamollnt xln amount of cancellation canolIatfonof of ofold old orders ordersho ordersTho orderjThe
The ho weight of evidence however inclines inclineso D Unes Unest
t to o tho probability that thatwhathnshappened thatwhathnshappenedhas what whatJirIJ hfv happened happenedlas h ppened ppenedhu
hu las b bo n pretty nearly exclusively A Wall WallStreet WallStrfrt WaftStrct
Street matfr m tt r and Ir so far as the thodecllntl thodecllntlIn decline declinen
In n stock market jrloes rlc rtoso s may bo followed followedby
by reduced Nduccdprl priced 1J for staple commodities commoditiesird oommodlUard
ard raw materials good rather than evil evilHill evilII eviliiIIl
Hill II tault ult from it Itf Cotton la even after aftera
a a considerable roaoUon nulUngatpricea nulUngatpriceathat selling at prices pricesthat pricesthat
that represent double the cost of the pro
duction of the theartiClle article There is thus
tamed theoetUiatyof Ul trortbJu UiejArgMt plact t t4I4i
4I4i f
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lag of settee evar v aeea ia the United UnitedStates Ulftedudotherthlnp trltedtesaadotherIhingsbg
States tesaadotherIhingsbg aad udotherthlnp other mhlagsbetog belBC equal equalru1lnar equalru1lnarrfCte rulin rulinprices ruling rulingpiles
prices for < cotton < tton oaaaot long be main maintained maIatalnedat maintamed ¬
tamed talnedat at their preeent level Something Somethingof
of the thosamesort same sort although possibly not in inas Inassreat inas
as assreat great measure la going oa ia lethe the case caseof cueof caseof
of wheat and other grains The Western Westernfarmers Weatemfarmera Westernfarmers
farmers with Itb their cupidity excited by bytho bitho b btho
tho high prices for wheat made last year yearaa
aa the result of Mr PatteD comer have havebeen hanbeen havebeen
been holding their wheat on an enormous enormousscale enormouaecale enormqusscale
scale for the former Pattea price of 130 130a i30 i30buabel
a bushel or something approximating approximatingthereto approxfmatlncthereto approximatingthereto
thereto It is 1 beginnIng to be manifest manifestthat manJfeetthat manifestthat
that this value will not soon again be bereached bereached bereached
reached and there ia BOW assuming In faareat ingreatproportiouswhatnisybe Ingreat
great greatproportiouswhatnisybe proportions what may bo ealled esiledade esiledadeLsyedmovementof a de delayed delayed ¬
layed Lsyedmovementof movement of wheat wheataad and corn as aawaU aawaUto well wellto eU eUto
to primary market Alt the indications indicationsare
are strong so far aa a they have gone for fora fo fobumper
a bumper crop of wheat la tb the present presentyear prNoatyear prcantyear
year Winter wheat entered the winter winteraesaon winterseason WIaterMUOn
season In December with a greatly in increased Inoreued increased ¬
creased acreage and practically the high highest hlgheat highsit ¬
est condition ever shown at a a correspond oorrespooding
Lag date Since then the winter weather weatherbaa weatherbui weatheriia
baa been almost ideally favorable the theentire th theentire i
entire winter wheat belt having been beencovered beenoovered beencovered
covered with an unusually UDWluaIlylleataU heavy fall of ofsnow ofElOW ofenow
snow This state of affairs may mayaltered bo boaltered i
altered later on but at the moment jt la laplainly Isplainly
I
plainly one of exceeding promise promiseIn
In I other lines of trade there ia iaan faan isan
an equally encouraging eao ur Iaar prospect pro The Theofficial TheoftIcIa1 TheocIl
official figure showed a slight falling fallingoff
off o la i Iron production n In the kmonth month of ofJanuary ofJanuary ofJanuary
January but the volume Tolumeof of this thI business businessbaa
baa now reached such a abreadUiln breadth in the thecountry thelIOuntrythat theountry
country lIOuntrythat that even evaB in January the iron Iroaoutput lreaoutput ironoutput
output was greater than in any month monthof
of the year 1800 save December Of Oicourse OfOOWH Ofooure
course a alight falling off in the JheJanuarr JheJanuarrpr January Januaryproduction Januarypr
production pr dubtloo almost invariably occurs occursOn ooouraOn ooourson
On Thursday y the report of the Copper CopperProducers CopperProdUoenI CopperPruoere
Producers Association Ao latloa attested that cur surplus curplus ur urphI ¬
plus stocks II OOI a of copper were 43000000 43000000pounds aeooooopounds 43000000pound
pounds leas than In the preceding month monthand monthand monthand
and to speak specifically that not notonl notonlwUthe only onlywa onlywatbe
wa wUthe the production of copper less but the thedomestic thedomeltlo thedoznestlo
domestic consumption greater 8f ILter Should Shouldall
all 11 those indicia l dIolof of improving conditions conditionsnow
now necessarily somewhat tentative be bestrengthened beatrenathened bestrengthened I
strengthened and corroborated as the theseason theaea theReason
season aea on advances it ia needless a edleu to make makepredictions makepredlotlona makeprediction
predictions as to what the he b state of t the thestock theatook thestock
stock market is likely to be at that time timeA
A word deserves to be said finally In Indeprecation Indeprecation indeprecation
deprecation of the entirely tirely unjustified unjustifiedcriticism unJuatllledcrltlolmn unjustifiedcriticism
criticism passed in a Urge portion of the thepublic thepubUo Ui Uipublio
public press P upon the report nportmade mode public publicduring pubUod11riq publioduring
during the week of the committee ap appointed appointed appointed ¬
pointed by tho Stock Exchange to in investigate inveetlpte Inieetigte ¬
vestigate certain phases of the recent recentColumbus recentColumb recentColumbus
Columbus and Hocking Coal and Iron IronaoondoL IronacandaL IronscandaL
scandaL B Basis sls for this criticism appeared appearedto
to be a confusion In the minds k cJ of those thosemaking thoeemaldnc thosemaking
making It as to th functions of the Stock StockExchange StockExclw1p StockExchange
Exchange committee oo n DlUee lIt question These Thesefunctions Thesefunotlona Theefunctions
functions were not aotthoee those of a general generalinvestigation genera ctmeImveetigatlOJi generaInveetigatloji
investigation such as was made inthe intheRock iDtheRock IntheBock
Rock Island affair alr a fewka few weeks ago agoThe aco7be igoThe
The committee that last week made its itseport Itaport Itsleport
port was appointed solely so1e1 to determine determinecertain determlnIn determinecettn
certain In business questions a relating to toth tothe I Ithe
I Itaatbad
th the drop in Hooking Co eoland Coal l and Iron stock stockthat stockthtbad
that taatbad had arisen between betweenvarioui various members membersof
of the Stock Exchange In passing un unqualified unquaUSed Unqualified ¬
qualified condemnation upon the affair affairconsidered acralrooaaldend affairconsidered
considered in Its It entirety the committee committeewent committeewentas
wentas went as far as 1 it Itwas waa entitled to go beyond beyondita
Its precise duty of settling certain rtaln specific specificfinancial apeclllotlnanclal spclflothianclal
financial differences In due course the thewhole thewhole thewhole
whole matter will come up before the thegoverning thegovernlnc thegoverning
governing body of fhe he e Stock Exchange Exchangewhich ExchanceWhloh Exchangewhich
which will mete out whatever whate pftna1tl penelt4eeare fMlt1M fMlt1Mare e eare
are found to be necessary There is I little littlefear littlefear littlefear
fear that when these penalties penaltiesare are made modeknown madeknoWtithey madeknown
known knoWtithey they Wtl 11 be declared by reasoning byreaaonlnCpebple reasoningpeople reasoningpebpla
people to be less severe than they theylIould theylIouldbavo should shouldhave houidhave
have been beenFIXAXCIAL beenTJNA1ClAL 4 4FLAXCZAL
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4 4TUISACrIEIlEIMIAIIIIIII
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NRIHATE III ATE SEGVMTY ISSIES if RJUUIJU AW AMlITIEI STEER GIRPIIATIMIS GIRPIIATIMISIIKIS I IItHIS
IIKIS EXiClTElM II All AllllAlKtJS AllllAlKtJSIJlTElEST MARKETS MARKETSINTEREST MAIKETSINTEIEST
INTEREST AUMEI IN IENSITS SIIJECT Tl T GREIIE GREIIENATIONAL CIEIENATIONAL CIEUENATIONALIcsTy
NATIONAL NATIONALIcsTy CITY BANK ANK HUlfDilNG HUlfDilNGWALL suiLbiNcseWALL UILDINCaaWALL
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New N w York Central Lines LinesEquipment LinesEquipment LinesEquipment
Equipment Trust 5 Bonds Due 1920 1920lateral 1920latcft 1920Iutcrt
lateral W May y I and November I IPrke IPrice 1Price
Price 106 l06id 1061 and Interest IattT Te yield eid 420 420Win 420Win 420Wrn15
Win ARead A Read Co CoBANKERS COBANKERS CoBANKERS
BANKERS
25 Nassau Street New NewYork NewYorkBOSTON York YorkBOSTON YorkBOSTON
BOSTON BALTIMORE CHICAGO CHICAGOLONDON CHICAGOLONDON CHICAGOLONDON
LONDON LONDONBertron LONDONBertron
11
Bertron Griscom Gris om Jenks JenksBANKERS JenksBANKERS Jenksi
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Inve Investment hnent Securities
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II Telephone e4jgask TlIii1Is A4 20 Stead St
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Hcxbn 1Ien KwTwk at Ik ek ekPrtraU Exeaag eIIa eIIaPrl
PrIest Prl WIn t PhUadelpl PhUadelplPanics PkIIsdIpCIaPanics II lpll lpllPanics
Panics and Politics Politicsdo
do not notarfccr affect the Gas business The record for prompt payment of interest and andprincipal andprlneipal andprincipal
principal who due is almost an n unbroken uDbr kea one oneTH oneTHE oneThe
TH THE E COMPANY whose wbOlebofId bond we are idling Is one of the Ibebest best
Interest Is I earned twice over overCtremlar overclre1ar
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i
II r HydroElectric HydroEI tric Securities SecuritiesYieldmr Securities II IITaeldinfromS30 IIYieldintfrom530
Yieldmr TaeldinfromS30 from 530 to 650 650We 150We 550We
We have prepared a special list of a few selected selectedHydroElectric select e1ectdIlydroElectric d dHydroElectric
HydroElectric Companies the First Mortgage Mort age bonds bondsof bondof
of which We to offer at prices pric to yield from 530 to 650 650Price 650Prleee 68OPrices
Price and ndfltU full itZt particulars r vpon application applicationWilliani appueasionWilliam I IWillianiP
William P Bonbright Co CoBANKERS COBANKERS CoBANKERS
BANKERS BANKERSMembers BANKERSMembera BANKERSMembers
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Schmidt Gallatin GallatinInvestment Gallalloinvc3tmcnt
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Ueaben Uu bsia of the New York Stock Exohaar
1H BUOAPWAY NEW NEWHigh Y0W14 Y0W14High
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