The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-04-20
TEE FINANCIAL SITUATION.

Il
Securities decision blew into Wall Stree
most promising upward movement In price
that the financial community had Wit
messed for . very long while. The oonsen
sus Of the large operators and OF the shrewd
est observers Of market conditions was tina
the stock market was both sold out an'
oversold; that 10. that normal liquidation
had not only run its course. but that tn
spectators for the decline who had beer
assisting the work after their usual fashion
had greatly overdone the business. The I'D
verse factors that had depressed prices hac
one by one either entirely disappeared
or 90 largely diminished In force as to b.
| NJ longer acute: and many reasons max
Ing for an advance In the price Of certain
stocks. particularly. began to appeal &c
investors. Just As the market was be-
ginning to move In response TO these nat
ursl influences. the announcement came
Of the court decision at st. Paul. Sc
vigorous and genuine was the advance
In prices that had begun that the gen.
eral impulse was to disregard the bad
news: and this feeling held the market
firm on the day when the news was broken,
Over the castor holidays, however. the full
decision was read and ponder>o upon. II
seemed Of alarming character. and last
Monday was q blue day in Wall Street In
consequence. Even then the selling Of
stocks came not from the mass OF COM
mission houses, but from those having the
accounts Of the large trsners. Some OF
these speoulators, as 10 now known, were
greatly scared. and tumbled over their hold
ings to the fret buyers. People through
out the country. on the other hand, did not
seem to be scared at all. Where conser-
vative investors congregated and in other
quarters much more surprising the opinion
was ventured that the decision would ao-
complish this great good at least-that II
would put an end TO the reckless planning
Of more mergers and combinations and to
the manufacture OF new securities. and
would tend to check unsubstantial and
ill-adviseu speculation generally. Many
Stockholders took the professional and
somewhat humorous view Of the matter;
also. that the mergers that had been going
on had tended to make business poor in
Wall Street by diminishing the number
and varieties Of securities that could be
dealt in. They declared that the dealings
In the stocks of this or that great combina-
ton Of companies did not equal the volume
OF trading in the old stocks in their former
separate form, and that hence facilities
for speculation were hampered and brokers'
commissions were lessened.
As the week advanced all these and other
similar considerations became emphasized.
1t was pointed out that the Northern Secu-
rites Company was in a peculiar and ex-
ceptional way in apparent opposition to the
Sherman Antitrust law. and that none OF
the great railroad and industrial combina-
tons that had been formed was on what
the lawyers cab 'all TOURS" with the North
ern Securities case II was recalled that
the case had not yet been definitely settled
and that fears on account Of II might
perhaps be deferred until the construction
OF the statute had been finally determined
by the Supreme Court; and IL was held TO
be more than likely that now that the OPP
pressive and far-reaching character Of the
law, as strictly construed, had been
some such amendment of
II would be forthcoming as was demanded
by the public necessity. II IL clear
to all intelligent people, and Is admitted by
many who would have holly denied such
proposition a few years ago. that un-
checked competition between railroad COM
panies and railroad wars" arc a very bad
thing for the business community: that
stability and uniformity Of railroad rates
are. ON the contrary. the greatest things
10 be desired: and that this stability and
can only be secured by some
form Of railroad pooling or Of combination
between railroad companies. 1t will be
EASIER than most people imagine TO get a
~. Il. IL ~..ls 4
owing railroads actually TO make combi-
nations that are now prohibited or to enter
nto permanent agreements concerning
'reight and passenger traffic. The rail-
-oads may. on their part, have TO accept !
'ome closer Governmental supervision Of |
heir business under these new conditions |
han is now the case; but the way out OF |
he Northern Securities difficulty lies clearly |
along these lines. So far as additional |
at present under the Sherman |
aw are concerned, II may be set down as a |
certainty that mono will occur. Public |
sentiment is fast crystallizing upon the idea |
hat only unreasonable restraint of trade |
hould be prohibited by statute: and as this |
sentiment has, in the past, sanctioned all OF |
he large railroad and industr rial combine
ions in the Eastern States. there is small |
eason for believing that any Government
ction against these combinations now.
fter the lapse Of 40 many years. is either
neditated or would be supported by the
,eople.
Voices OF this sort in Wall Street Gained
he one days tumult. Then there was a
,ish to get hack the stocks that had been
oollshly sold. Then the legitimate factors
making for higher prices. Northern Securi-
les Company or no Northern Securities
'ompany, which had been momentarily for
often, again came to mind. The vast and
enuine business prosperity Of the country,
ntirely untouched and unshadowed by
hat had happened, was again remembered.
L the end OF last week the market was
noe more under the control Of these forces,
nd was climbing upward at very fair
ace; and there was nothing in sight TO
revent the climbing from being kept UP.
he first reason which justifes higher
rices now In the greater ease in the money
and the expressed Judgment
the most competent authorities on the
lbject that II wild stock market boom
not started there will he plentiful sup
ly Of money throughout the summer
,r all business enterprises and for a reason
BILE speculation for the rise In securities