Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-05-14


It IL the great growing month Of the year
and everything that has roots in the
ground is In the period OF most luxurious
growth. To the casual view bounteous
crops OF everything is suggested. The i'm
agination becomes infiamed with the pros
pect OF bursting granaries and fabulous
tonnage The natural instinct is to con-
tract ahead for the sale OF agricultural
products and to buy railroad securities.
It is the month OF all months for buying
and selling on scenery" In anticipation
of June bulge some of our big plungers
have been recently buying calls in the
London market on a large scale. One OF
the giants OF the street has accumulated
a line of 100000 shares, and the aggregate
purchases Of calls by the speculative con-
tingent is estimated at not less than
10000 shares. If the expectations of this
element are fulfilled the London privilege
traders will come in for a good trimming
within the next sixty days.
r
Wall street is taking lessons in interna-
tional politics and wisely discussing the
probable effects of Europe becoming in
Tolved in the Russo-Japanese war. French
willingness to allow the Russian fleets to
violate neutrality laws and use French
waters In the far east to COAL clean and
provision q feet of battleships. cruisers,
etc., caused the goosefiesh to creep up
and down the back of Wall street for
day or two.
The little furry blew over, however, and
the change IN sentiment was followed by
sharp upward turn in quotations. The
reason why the American money and
stock markets are becoming Increasingly
sensitive to foreign political movements
may be found In the fact that we have
become a factor Of first Importance in
the worlds afairs-that we are a world
power in the broadcast meaning of the
term. Every new battleship that is built
by Uncle Sam enlarges Importance
and tends to the development of greater
sensitiveness to international intrigues.
+ The life insurance companies contributed
In an important degree to the recent de-
cline In the stock market. They INDUCED
themselves in the pleasure of general
housekeeping. With one impulse they
proceeded to get rid Of everything they
had in the way Of doubtful securities, at
the same time taking the precaution to re-
duce their holdings of such stocks and
bonds as might subject them to the criti-
cism OF having too much OF one thing.
One of the counts in the attack on the
Equitable was the charge that 1t had
too much money In Harrimans securities.
Of this lost no time in putting their houses
In order against any investigation which
might be made or moral Indictment
brought. This spasm of reform on the
part of the insurance insiders is generally
regarded as a very healthy sign. The
storm signal hoisted over the Equitable
Life Assurance Society served as warn
ing to every other kindred organization.
Even the New York Life, with its over
burden of Morgan securities, has so light
ened its load that 1t can now pass in
spection with reasonably clean hands. al
though at one time there would have been
big scandal had it been attacked with
anything like the viciousness which has
characterized the raid on the Equitable.
o-7t
! The international money balance is now
Believed to be heavily against US. Foreign
exchange specialists make the claim that
many of the stocks and bonds which have
been sent abroad during the last six months
were not sold there, but were consigned and
borrowed against in the European centers.
If this be true, the contingency must be
taken into account of a return flood of col
lateral in the event of political or other
troubles in that part of the world. The In
ternational trade balance is apparently in
our favor, but experience has taught that
this exhibit is not always trustworthy, and
that anything favorable there is liable any
time to be more than offset by the opera
tons OF banking interests.
There has been a distinct setback in the
bond market, and several underwriting syn
dicates find they have big unsold allotments
on their hands to which they gayly SUBJ
scribed few weeks or months ago. The
absorptive demand Of the public for
bonds seems to have become exhausted for
the time being, and recent sales by Syndi-
Gates or their agents have been at material
recessions from subscription prices.
X X
This week has had two anniversaries Inn
portant in the annals Of Wall street. May
was the fourth anniversary Of the North
ern Pacific corner" which was the begin
ming Of a decline in the stock market which
did not end for two years and half. al
though in the December following occurred
sharp recovery from the spring slump.
May 10 was the thirty-sixth anniversary of
the driving of the golden spike of the
Northern Pacific an incident which was
also the beginning of a panic, and the end
Of which was not reached for several years
thereafter and which carried to wreck
many Of the leading financiers Of the day.
including Jay Cooke and Henry Vaillard.
Mr.. Roosevelt's return from the mountain
Businesses of the far west has been sig
nalized by resumption Of debate over rate
legislation at the hands of Congress next
fall and winter The simultaneous declara-
tions on the subject by the President and
by his spokesman in Washington. Secretary
Taft, confirm what has been said In this
column as to the administration program.
Mr.. Roosevelt publicly makes 1t plain what
he intends to recommend. and 1t is also
patent that he will frame the game SO that
Congress will be obliged either to fight him
openly or go with him. Those who are not
flatfootedly wild the President will be
classified as 'tagin" him.
The administration influence during the
summer and early fall months will be turn
ed upon the railroad arrangements to con-
vince them that the wise policy will be to
acquiesce in the proposed rate legislation
and not try to antagonize what the White
House party believes to be great popular
demand for the curtailment of corporation
power. Whether or not the owners of rail-
read properties will yield to this insistence
remains to be seen. There appears to be q
division of inside sentiment on this point.
Quite a number Of gentlemen prominent in
railroad affairs are on friendly personal
terms with the President, and 1t goes with
out saying that they will use what influence
they have with Mr.. Roosevelt before the