Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-05-31
Financial News Letter
By W. G.. NICHOLAS.

| NEW YORK May 3O.-Since the good
ship turned turtle last week and dumped
| into the sea a great mass of speculative
| stocks it has been gradually righting it
! self AS stated in my last correspond
ence. the great leaders had found a mar
ket for large quantities of stocks and had
unquestiona bly, unloaded the bulk of their
manipulative holdings. In doing this they
probably made one of the biggest kill
| ings in the history CT Wall street. The
| Messrs. Hartman. Frick. Rockefeller.
| Rogers and Archbo'd most likely recov-
| cred In large part the vast sums of money
! lost last fall and summer when they were
caught spread out and Obliged to make
| colossal sacrifices to save themselves from
! ruin. Not only have they made this quick
and remarkable recovery. but they are to-
day occupying a stronger market position
than ever before. and their power Is
| everywhere recognized.
| Especially is this true Of Mr.. Hartman.
| whose astounding ambition. hacked by
apparently limitless resources and a coEr-
age that never dms. puts him into the
very forefront of financial and railroad
management For the time being this
remarkable man seems to be paving more
attention to the eastern railroad field.
while not in the slightest degree relin-
gushing his grip on the territory west of
the western Indiana state line.
The latest in regard to Mr.. Hartman is
that he is planning an anna lgamaton of
the Delaware and Hudson with the Bos-
ton and Maine. a move oStensihly to re-
| lieve the New Haven system of its recent
acquisition which is giving such offense
to the Washington administration 1t does
not seem that this deal has progressed
very far. but it is one of the things un-
der discussion. Any such arrangement
might easily include also Ontario and
Western. The three lines would make
a very considerable system and would
gridiron a populouS and profitable terri
tory. If Mr.. Hartman is allowed, camel
like. to get his nose under the New Haven
! tent. 1t would not be long before his whole
body would be within-or would it be the
New Haven that was within?
At the climax of the manipulated bull
movement in stocks the public was in the
game to a very much larger extent than
vas generally imagined. And now the
public is carrying the load and is already
grunting and grooming under loss. The
reaction was sharp and severe. Whether
it is only beginning the progress of back
tracking or whether stocks will be taken
up again by the Hartman combination
and moved to higher levels. is the specu-
lative problem at this moment. The ad-
vance which took place during the two
discounted every legitimate reason for
the improvement in prices. A very con-
siderable reaction was plainly in order
1t is true that general business conditions
are better than they were two and three
months ago, but they are not as good as
enthusiastic stock market bulls expected
and have not in the fullest sense fulfilled
the hopes of those who were behind the
movement and who predicated their deals
on the belief in a larger and broader ma
/ fi0nal However the ont
look may be called most excellent. and
reports of commercial and trade condi-
tons warrant hope that the recovery
certainly commenced may continue.
The stock market is drifting into po-
litical period which is. more than likely
to be decidedly disturbing. AS the po
litical conditions become more clearly de-
fined it is growngiy evident that the DOM
inant party will have a real fight on It's
hands this year-a fight full of dynamite
and trouble. with all the possibilities of
two or three years of violent tariff agita-
ton and the reframng of the personnel
of the Supreme Court of the United
States. Viewed at its best, there is moth
ing in the political situation now. or for
the next several months. conducive to
market serenity. The best the stock mar
ket can look for out of the political tur
IIlolt 10 lAc WolSl VI ~.
Il
The manner in which some of the So
called INA lefactors of great wealth have
taken advantage of White House hos
tility to feather their own nests and to
promote their warfare of aggression
stands out more clearly as time grows
older. 1t does not appear that any single
one of the parties against whom the
Washington batteries were turned most
vigorously has lost ground by reason
thereof. On the contrary. many of them
are more strongly intrenched and richer
than before the attacks began.
1t would seem almost as though the
big gamblers in Wall street had been
capitaliZing administration hostility with
purposeful intent to coming it into stock
exchange results. Next to having power
full friends at court it is sometimes as
profitable to have known enemies who
can he relied on to make certain moves in
response to definite irritation. 1t would
rightly make many of the admin ist rat ion s
friends jump stiff-legged and e<claiIn
wrathfully If it were charged that the
White House had been used for market
purposes. yet there are those who sheer
| ingly say that such is the case-used by
enemies with malice aforethought.
reached such magnitude that it is an
| important factor in the money market.
| Since the beginning of the year more
| than 3Hn,G00 foreigners. mostly laborers
and workingmen. have gone back home.
taking with them on an average 500
| in cash. This means $50 GHnop trans
| ferred from this country TO the old world.
and the stream is still flowing in undi-
minisiied volume. During the year 1897
| 80 600 foreigners left this country for
| their former homes. taking with them APP
proximately ShHpoip. 1t is due to say
| in this connection, however. that only Il
| small proportion of this aggregate of
| $50 600 coo in seventeen months came out
| of the banks or visible supplies of cur
rency.
| 1t is the habit of people OF this kind to
| keep their money in their stockings. in the
| bottom of teapots or in the mattress. So
| in reality a very considerable part of this
| large total reappears in circulation BY
| reason Of the refrigeration. being spent for
steamer fare and other travelling expenses
/ 1t is a curious f eature of immis grafton II "a
tistics that more foreigners return to their
! old world homes during the years CT pres
| idential campaigns than at any other
| time This has been especially noticea Bile
during the last twelve years. 1t IS also
| noticed that during presidential campaign
wears foreign-born citizens are prone to
send a considerable part of their savings
abroad for deposit. the hubhub and en-
citement and the seeming fierCeness of the
great political battles appear 10 terrify
/ the new arrivals. most of whom left the
old country to get rid OF just that sort OF
| thing.