The morning news., 1892-03-28
CLEwS' VIEWS.
The Financial Outlook as Seen Frou
Wall Street

The Financial Outlook as Seen From
Wall Street.
NEw YoRK, March 26.-Thers were too
many uncertainties this week TO permit any
aggressive movement on part Of the bulls.
The silver question, the Bering sea diffi-
Guilty. the legality of the Reading deal, the
break in Northern Pacific and the approach
OF April settlements all contributed 10 re-
strict operations. Investors, too, were
somewhat discouraged by the fancy prices
at which some Of the good dividend payers
are held. On Friday there was an upward
squirt on the strength Of the anti
silver developments at Washington !;
but the silver advocates are not yet beaten
by anv means. aud they may be expected to
renew the battle at the earliest opportunity.
Nevertheless, Wall street is not seriously
alarmed in this respect. having full cond-
dencs In the presidential veto. The under
tone Of the market is unquestionably strong;
and stocks, being in strong hands. would no
doubt readily respond TO favorable condi-
tionE The industrials have exhibited con-
siderable activity. but this / can hardly
deem a satisfactory feature in selecting them
as leaders in view Of their heretofore erratlc
character
The monopoly issues have introduced an
elsment of uncertainty into the stock mar
ket which calls for special caution on the
RcEb VI luNesbOIn anu bDcCulaLOIb, DOT
specific precaution on the part of the ex~
change itself in admitting unfortunately
so called securities to it's list. Public opin>
ion is becoming more aud more decidedly
hostile 70 whatever form Of organization
conspires to defeat free competition. Con-
gress and the state legislatures find it nee
essary to respect this determined attitude of
the people. and at no distant time the laws
will be 80 framed that nowhere in this coun-
try will any form of corporation which
aims to exercise the powers OF a monopoly
be able TO exist under the RRis of
the law. The attempts of the trusts to
evade the penalties Of their ille-
gality by organizing under the
loosest form of legalization to be fonnd un-
der state laws will become futile. The pro-
curement of control of system Of COM
peting railroads. under such expedients as
have been adopted by the Philadelphia and
Reading, will be declared illegal, because
contrary to public policy. The law will be
constructed with a simple purpose of pre-
venting the defeat Of competition by mo-
nopolies; and that form of prohibition will
be made TO apply to any and every form Of
organization. OF this there can be no rea-
sonable doubt; for the present drift toward
monopoly is so widespread, so utterly rev.
olutionafy In every sense in its character,
and SO threatening to vast interests that to
suppose it can be much farther tolerated
had lost their regard for freedom and their
sense OF self-respsct.
With this prospect before our monopolies,
what is the market status Of their immense
iSsuesl Many of them are already illegal,
and the others are destined to become so.
When that result comes, the profits they are
now making out Of an exclusive control of
prices will disappear. The stocks issued
by these organizations have been "watered"
AXfant ha frtI
value OF their assets; what then will be
their market valuation when the law has
deprived che organizations of the power to
artifcially initiate pricesl II requires little
foresight to discover that these issues con-
stitute most formidable danger IN the fut~
ure OF the stock market. Any day, a new
law or decision Of the supreme court Of
the United States may within twenty-four
hours wipe out tens of millions of the mar
ket value OF this illegitimate scrip with
consequences of the most farsreaching
charact ter. The action of the Standard
Oil in dissclving its trust arrangemen is
is significant warning. Spite Of its
enormous W ealth and solidity and 1 is un-
questioned power of resistance, its saga
cious managers deem 1t imprudent to face
the omuipotence OF the coming assertion of
the public will, and the trust is forearming
itself by putting its great interests nnder
some more normal form of management.
In striking contrast to this prudence, the
sugar monopoly, with no choice between
early failure and more complete grasp
upon the entire industry, is making another
enormous issue Of stock at an enormously
exaggerated initiation of its true value
The flooding of the stock market with such
vast issues of scrip that has no true and
permanent basis of value cannot be re-
garded as anything short of standing
grave menace to Wall street interests Op-
orators and investors should be warned
that the chief aim Of the promoters of
these schemes is to transfer their scrip into
other hands at the highest possible prices
and then maybe leave the disorganized con-
Germs to their fate