Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-04-04
Financial News Letter
By W. a. NICHOLS.

BY w. q. NICHOLS
Seecisf CofrespoDdence OF The Star
NEW YORK. April g. 1900.
The stock market these days reflects noth-
ing eHtepting the resuessness of volatile
speculative element. The more important In
terests are st!n lying back awaiting develop
ments or serious inport-the outcome of the
labor troubles In the anthracite and biturni-
nous coal fields. n line on the crops a sense"
or the political situation and something def
nite on what Congress will do about rail-
road rates and trust restriction The labor
issue rnay be- of speedier adjustment. but
the other important matters are not likely
to be settled for some weeks to come. and
until then tho market will be more or less
OF a gamble. There are some who look ON
stocks as always a gamble. yet as a matter
OF fact the great sweeps In prices are Inn
peiied and controlled by common sense
rules the same as any other business. Owing
to the liquid state of the stock market
price fluctuations there reflect quicker than
In other departments OF business the
changes In conditions. II Is an accurate
barometer of the financial and trade situa-
ton and oftentimes gives warning OF
coming prosperity or calamity long before
the general public can see or understand.
IL thus comes to pass that declines and add
vances In securities often have to the gen.
erai public an appearance Of mystery and
other Inconsistency. Yet In retrospectiop IL
is always seen that there has been good
reason for the big rise or the big fall In
prices Wan street nearly always mirrors
broad national conditions In the narrower
sense fluctuations covering brief periods
measured by days or weeks represent the
movements of speculative forces and clique
or pool manipulation. AS rule such ar
tlncial action 10 helpless against the great
tidal sweeps and can make no Roadway.
For the reasons mentioned the great
banking and money interests are taking
small part in the Wall street game. They
come to the support of prices only when
the bearfsh contingent becomes too eager
and undertakes to raid the market below
the danger point They are also In evil
dence when plunging spectators get i'm
patient on the bull side and unwisely whoop
things up in some specialties and thereby
attract undesirable outside support. In the
present condition OF the money market and
on account OF uncertainties in other direc-
tons the conservatives are anxious to keep
down speculative fever. In almost every
case this hoid-back element Is bulish at
the bottom, Its Investment and property
holdings enlisting IL permanently on tho
constructive side of the market This ele-
ment is composed for the most part OF
ownership and managerial control Of great
railroad systems and mighty industriaIs
who are naturally the very best friends OF
the stocks in which they are interested and
for which they are In a sense responsible
When these people set their faces against
speculative help ii may be assumed there is
good reason for their attitude.
AZ
1t is beginning to dawn on the public
that the publication in high finance and
the stern uprising against the continuation
of unfair business methods on the part OF
trusts and railroads is working for the gem
eral good, and that as net result honest
values everywhere will be benefited Instead
or injured. And, furthermore, that the
standard of business morality. is in pro cess
of being raised another notch. The flood of
exposures and scandals which for year or
more exerted disquieting influence on the
markets Is followed by reaction OF seut-
ment, due 10 clearer apprehension OF " hat
the result will be. Cleaner methods are
taking the place of former loose and graft
ing methods, ard II is certain that corpo-
rate affairs are entering upon period or
honest administration. This Is alt to tho
good and must find reflection sooner or
later in quoted values.
A new departure by the Supreme Court OF
the United States threatens to break up i
lucrative Washington and Wall street in
dustry. namely, the selling os advance in
formation of the decisions az that tribunal
Several times of ate important DECISIONS
have been announced orally by tic 5Su-
prene Court with the sta cement that visit
ten opinions would be given oat-later I'm
der the former practice of writing out t.e-
cisions IN advance 1t was found impossible
to guard their secrecy, and If a or.knowl-
edge of what was coming worth ray
ing for, accurate fnforma ton was often
times obtanable. Under the new order of
things there will be no way for the scouts
to get line on the decisions and they VIII
have nothing to sell