The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-01-30
THE FINANCIAL SITUATION.


on the Stock Exchange last week and In
another sense very uninteresting for
fluctuations In prlco8 were mostly oon-
fined 10 two straight and simple move
ments, decline due TO the Russian trouble
and a sharp recovery from 1t, review
I OF the weeks transaction, reveals little
except this and no Other development
| played any perceptible part IL huencing
! the course Of values ave that right at tho
weeks close the pending arrangements
| OF tho oountry's railroad map following
/ the near dissolution Of the Northern Sc
| ourities Company began TO exert their
force. There are two opinions current in
| Wall Street "a to the reasons for the fall
in prices in the fore part OF the week. One
| Is that II merely hinged upon the Russian
situation as pretext and that large in
forests to whom the recent heavy buying
by the Western speculative element was
unwecome determined not only 10 hold the
market In check. tut to shake out good
portion OF the Western commitments. The
other theory is that what occurred was an
utterly needless stampede on the part OF
speculators. assisted by some pretty round
nrolt taking sales from the large capital
Is and by short selling OF a reckless char
ally sccorr -anied. II n wPs not directly
caused. by heavy operations for the decline
l. beyond doubt, nor Ia there any doubt
as to Just whore n considerable portion
at least. Of these operations originated
They proceeded from the coterie known
RI the Boston party, for whom a much more
Illuminating designation would be ths
'bucketshop' party-and 1t looked nightly
-. -, -
tlemen rad ulanaced ~ scouiro tho losing
end Of the bargain they had entered into
II was obvious. at any rate, that NO o " w o
was not an operator OF tho hair trigger
description managed to get very much
profit out OF sales for the short account
made during the six business days. Such
was tho rapidity Of the recovery when II
began that no long line OF short contracts
oould have hnen eas''~ horeht In nrd once
more. when the market turned. II was tho
old story OF scarcity Of stocks. 1t was
found that investors and spectators for
the rise who had long been watching an
opportunity had been greedy purchasers
on the decline and were very Yin willing
sellers at the advance. Moreover. the fall
In the market had manifeetly played directly
into the hands Of those who. for reasons OF
which more will be ma de known in the future
than at present, are accumu ating such
quantities Of the Erie. Reading, Vanderbilt
and entire Northern Securities group OF
stocks.
Never In the history OF Wall Street has
there been less gubst antial rea for de-
cline In the stock market similar to that
which happened last week than that which
was afforded by the street riots in st. Peters
burg: nor is 1t likely that any fan in prices
worth speaking OF would have occurred had
It not CHANGED that the market WAS right
at the top OF rapid advance in values and
at the highest level. almost. for more than
two years. There was 'wfn'I long in
terrst' In the market that Was vulnerable;
that was the chief cause for the break. A
for the news from abroad. IL speedily became
evident that much OF 1t was utterly IN
trustworthy. A good deal Of Il came from
the corrcspor dents OF English jourr ais
who are Historically artRussisn in their
svrnpathies d who fesitatcd not 10 cable
as fact every absurd street rumor that they
could lay hands on and to embroider these
with fictions OF their own imagining. 1t
also Immediately became apparent THAT no
revolution at the present time was in any
remote degree possible. Tho troops stood
firm. as did the peasantry, the great mass Of
Russian people. What could a few work
men in the Russian cities, an insignificant
portion Of the population, hope to accom-
plish agnnst such odds7 Here the jrdg-
mont OF all who had to consider the matter
from financial point OF view was a curious
mixture of American humanitarianism and
American common sense. There was roha-
bly, not one man on our Stock FIchanCe
In the fore part OF last week who would not
have rejoiccd In his heart to have seen the
whole stupid, depraved looting, tyrannical
and utterly media val Russian bureaucracy
a. well as the house Of RomanoG itself,
swept o,t Of existence; and yet there
re probably few persons y ere who
did not reaizn at the SAM time that
the hour for such events as described has
not vet come and that in the present state
OF general tntellirence in Russia any sweep
ing and immediate charge IN the form Of
tIe Russian Government in the direction Of
democracy would be an International cstas-
trophe In the light Of Ia ter reve tons
something IL must be confessed, is also 10
| b. said IN defence Of the acton Of the au-
;horitiea In ST. Petersburg a week ago
Yesterday Tho mob who marched In
the streets carried arms instead Of going
unarmed. as was their oIiFinal intention,
and thei- movements clearly took on
political and revolutionary character in
stead OF mere demand for larger pay
and lighter hours Of labor for the workers
in the shops and factories. Whatever
lack OF tact and abandonment Of golden
o jportunity there was in the Cars refusal
TO see these men or committee Of them
/ the Government could hardly daily with
an outbreak OF rebellion. The true way
10 regard the affair as possessing inter-
Get for financial markets WAS. of course,
/ the way the cold blcoded SPECTATORS In
( Europe looked at It. They perceived at
once as Wall Street did about foTty-tiGlt
/ hours later that it all worked tremendously
for cessation Of the Russo-Japanese con
/ test, or at least 10 make the carrying on
I Of this contest more difficult on the part Of
/ Russin. What had occurred was In its
! essence a great outcTy In Russia against
/ the continuance Of the struggle; and while
/ the present revolt was Of a kind TO be easily
/ suppressed, bodies Of troops that could have
I been sent to Manchul ia must now be kept
/ at home on guard. In much more eirec-
II IL.