The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-05-14
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AsH ahrgiy heeame svtieuf In wal F'fsst
itst ssrb fhat Ne ayeauisffvr diuaiiUh
hti lisi successfully rassa,t ihrlunh nte
n No mUst thafntigh otaalnaa 6ut sern
Nv HraHf feafs, fham 80 70 a%iHflrnuff
ieaife M fhs fae n rs0rtH NJ ~ fr'nrlHi
iistHe' w. huf Hofks THE wsuiiei Nv .
Htfaiufi tivtneH In psioes thai e1. iN p
Fav 8iH,st lHf o. laotei Hwi eUs fHr
tiellasly ilarnurHHief Nv y lafar fsf'v "
HHr1iaihfs ~ fr iHrhre fhu bot nnlIe
mfvv commandments rsaai upoH No. biea
tha9 fuf ~ %i0lsatHr iivra w eNnie. fIlloW
lnt me gan y HHetfu 1~ieastef ~ mHfhei
saa Nv W. seaH sni unaetttti. th"f tNH
Hfs fes haya ~ thH fent hmi fHfird ihe
euNitinn n ansip tetnnr eefy rlair
nv dfrline IN ihe maftei that hat Iren
sstafieNeagt hsii M iaarH alieudet vim
sBHsa ~ raHir. htH nHvef'hnlesa v sHs .
raNtrHy Ireiina lfuigad w thH Tttent
swi farfii,v ~ mo fsil IN valurs IN only
= ntiiH nfnfs Than tNu Sps tho Hvepfr
prize ~ tho %arurtiies srtiveiy draf IN ~
tbs grcs ttehanee hal teen hnoet@i
dpen thire~n puiNta snd thla rams 90
inp ~ 4 deciih~ n heafIy aS Iolnts since
tho %ipaianlne N tho year A very lara"
humi~f ~ 'riuneine" atrculatofs fuf tho
r@n hal t@eh forrest io oil ell w Tho ffra'ef
purtloh ~ their s,ocha and tho wall ~ rect
commission h1,isea a%rnerallv found = werk
ago laa, Wedns siay that they we're hail"d
out ~ thsif holdings ~ securities ~ ~
extraordinary degree. Their was. NJ coufa',
nothing In tho situation tha, warranted
anything iiks the vast feeling ~ ressi.
mism that oyercame tho speculative com
munity during tho decline. and thew Vas
~ No time N danger. real ur rmute, ~
anything more thnn temporary trouble
In tho market. Thcrr was, therefore,
IN the decline an absorption ~ stocks
by great financial Interests - thai whom
tho selling movement ran ita coursa "
was found that securities had been lodged
In stronger hands than they had heen Tor
years bach. IN addition To this n great
speculative account for tho fall In the mar.
kpt had heen created ~ much tho same
nature "a the reckless operations for the
riae that had preceded II, Ten days ago
Wall Street was full ~ the stories of tho
great fortunes tina had beer suddenly &c.
cumulated by n dozen or morc young speci-
lators who had sold their tens Of thousanda
81 shares when the market went down
regardless Of the advice of older men who
had warned them that conditions did not
Justify such an fall in the market
as had occurred and that prices were likely
TO turn suddenly upward at any time. The
result was. naturally, that when the market
stopped it's fall there was in the first in
stance q rush 10 cover short cont racts.
The capitalists who had been buying stocks
on the way down began to enlarge their
buying orders "a the indications pointed
to the probability that the market had
touched bottom. In a very short space OF
time the market had recovered TO a point
which left little IL any profit remaining,
and doubtless in most instances a loss upon
the headstrong speculations for the fall
that had been entered into. Despite the
continuous rise in prices that ven on, every
sensible person realized that market valua-
tons were still cheap; and as the week
neared its close there were really only two
factors that were operating in any sub
stantial degree against the markets up
ward march, and these were both referable
to one c~ause-namely, the number Of days
that the market had advanced without re-
action. Intending purchasers Of stocks for
investment were naturally somewhat I'M
willing to buy after the market had risen
seven days without any decline, knowing
that a day must come some time when
prices would show some net recession: and
for the same reason a large portion of the
habitual trading element in Wal Street
felt a constant incentive TO test the market
with sales Of stocks hat they did not own;
that is to say. in other words, to afeel for
the top" temporarily, Of the upward move
-- N.-- - q too - thH t,il "n1 4,
named expressed, however, a desire to buy
stocks at any reasonable reaction from
the high level reached; and this illustrated
the fact that a fundamental change for the
better had come over speculation and in
vestment temper, whose final ~outworkings
no man at the moment can foresee.
1t ia obvious that, aside from the stronger
technical position Of the market arising
from the reduction Of speculative accounts
open for the rise, there has been a sort Of
general sweeping away Of LIQUIDS that have
long lowered In the financial sky. Abroad,
the Moroccan diplomatic difficulty ard May
Day disturbances have passed, while in
France the result Of the elections, a matter
which was watched with deep interest by
fpanciers in every quarter Of the world,
has been such as to dismiss all fears that the
party of law and order there has loosed it's
grip on the Government. The Russian LOAF
has been subscribed for much more eagerly
than was thought likely, leaving bankers
everywhere in Europe, and especially in
France, much less DESTROYS than formerly
Of locking up supplies of ready money.
Here it is evident that the rail way rate
making bill now pending in Congress will
be, in effect whenever passed, a mere
academic measure; since it has at last
dawned o the minds of everybody,
including those Of various persons in high
official place, that under our existing con-
s%titutional form Of government there can
be no delegation Of power to anybody to
fix, without the contingency Of review by
the courts, the rates at which railway
traffic Is conducted. The railway rate
making question, therefore, stands prac-
tically about where it vas before the pres
ent session Of Congress met. Action Of tho
Interstate Commerce Commission now
and for all time as long as the Constitution
lasts must be passed upon by the Federal
Judiciary Tho 6isputea Of the coal MINING