The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-04-13
TIE FINANCIAL SITUATION.

Paul that the United States Circuit Court
OF Appeals had unanimously decided In
favor OF the Government in the latter's suit
against the Northern Securities Company
round proportion Of the traders who had
bought stocks In the last week or 30 sold
them instantaneously, and there was fair
quantity Of speculative sales for the decline
The market, however, received the news
very well-a little too well, many observers
thought. Considering the volume and in
tensity OF the selling and the oonfessedly
bad character Of the news on which 1t was
based, the strength Of the market clearly
indicated the presence Of supporting orders
and stocks purchased upon these orders will
very probably be for sale upon a small
advance in price. Opinion as to the i'm
mediate future OF the market at the week q
end was confused. The prevailing view,
although II was hesitating one was that
prices would be sustained by the genuinely
favorable factors In the general situation
that arc entirely unaffected by the Northern
Securities decision. These factors are the
prolonged liquidation and cleaning out
process to which the market has been SUBJ
jected; the bettered condition Of AFFAIRS
abroad; the magnificent crop outlook-the
Government estimate published on Friday
indicating a record yield Of winter wheat
and the continued prosperity Of general
business; the larger returns, recently, OF
railway net earnings: the easier feeling
regarding the outcome of the disputes
over the paying Of laboring men; the evil
dence that the manufacture OF new Sc
curities has stopped, and, most important
oil h. haf ma
stock markets money difficulties are over
II anything like moderation Is displayed
by spectators in their operations.
But 1t is still remembered that while dan
ger OF q money squeeze has passed,
money rates will probably range COM
paratively high throughout the sum-
mer, operating against the bond market
and the prices OF the so-called investment
stocks in much the same way as they have
done for eight months past. 1t must be
admitted that II the editorial and news
articles in the newspapers throughout the
country are true crteria Of public senti-
ment, this sentiment Is not simply that Of
an unwillingness to buy stocks at current
figures, but is disposition Of positive hos
tility to Wall Street. 1t seems clear that
the emphasis that has recently been given
In one way or another to the amount OF
unsold securities remaining in bankers
hands. and the announcement Of one great
banking house after another that it 10
through with syndicate formations for
an indefinite period Of time. has had an
effect upon the public mind. Just how
much Of q bull market can be formed
under these circumstances is, therefore,
q little doubtful. Indeed. there are certain
banking interests, at least. who very openly
declare that while they neither want
nor expect lower prices for securities,
they do want Wall Street to enjoy a
season Of rest and quiet; and they aver
that the wisest Spectator for long while
10 come will be the one who endeavors to
save what money he has already made
rather than to try to make any more. These
bankers extract this comfort from the
decision in the Northern Securities case,
hat IL will prevent what would otherwise
be the wholesale organization Of holding
throughout the country, many
Of them Of an extremely hagitious oharao-
ter, which would most certainly excite
public resentment and add to the difa-
,ulties Of the money situation. II the de-
,ision in the Northern Securities case had
been in favor Of the railroad companies.
/ would probably have started an untoward
stock market boom that would have worked
harm at the present time and have resulted
n a disastrous panic II the final decision
proved to be In favor Of the Government.
The time has, however, arrived when
Wall Street should look at the Northern Sc
,lirities matter squarely in the face. 1t is
rue regarding it, as it Is Of every case Of
he kind. that it is the Judge who has the last
guess who makes the law; that IL, that law
suits are lottery, and that one can never
ell just how successive benches Of Judges
will regard the points involved. They may
Affirm and reverse each other continually,
Is they 30 often do. until the last court
,peaks. Until the Supreme Court Of the
United States has actually passed upon the
Northern Securities case, there can be no
certainty as to the determination OF the
ssues therein presented. Admitting all
his, it must be conceded that the chances
lie heavily in favor Of the affirmance Of the
decision Of the Circuit Court Of Appeals.
The decision Of the Court was unanimous,
md II followed the long line OF presidents
vet by the decisions Of the Supreme Court
n the Addyston Pipe and Steel Company.
he Trans-M Missouri Freight Association
md the Joint Traffic Association cases,
md others OF similar nature. The great
took market operators will undoubtedly
orange all their ventures with the idea
learly in mind that the final decision Of the
ase will be in accord with the one just rem
Iered Up to the present time the considera-
ion by the financial community Of the
surely legal questions involved in the North
I'm Securities affair has been more or less
werved by the views generally enter
aimed as to the benefits of the railroad
that was there attempted.
another opinion, whose prevalence IL,
erhaps, unfortunate, IL that the sharp
awyers who have to do with this matter |
sill still find way" out Of the difficulty |
: the present plan proves unsuccessful; |
mong the projects suggested being the |
,sue Of a new form Of beneficial certifl- |
ates.- the invention Of some shrewd device |
( trusteeship, the sale at auction Of the |
Iorthern Pacific and Great Northern stock |
o the broadly chartered North American |
Company, or the transfer Of the Northern |
ecurities Company to British or Canadian
ands. II the Supreme Court upholds |
he construction OF the Antitrust law
lid down by Judge Thayer in his opinion
tha praeapt casa II Ia ha ri to 400 ho-1