Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-03-01
Financial News Letter
BY w. G. NICHOLAS.

semi-suspended animation. The really I'M
portant interests are quite willing to let
things take their course so long as no
panic develops and SO long as the specu-
lative element refrains from indiscreet ef-
forts to bull prices. Before his departure
for Europe Mr.. Morgan expressed the
opinion that the best thing that could
happen would be to let the market rest
for a while. So far as his influence goes
it will be in that direction. Evidently he
feels comfortable on that point, for he
intends to be gone between three and
four months. and has planned to have
good time entertaining royalty and add
ing to his art collections. A good part OF
his vacation will be spent In sunny Italy.
Mr.. Morgan shows no signs Of the wear
and tear he suffered during the panic
season when he was in command. and
when the entire burden OF saving the
| situation rested upon his shoulders. And
really there Is no reason why he should
show the signs Of those toilsome and
anxious days and nights. for he is known
to have made one of the biggest killings"
of his life In payment for the part he
took. No one disputes the claim that he
was the chief savior of the situation, but
1t may be said as an offsetting. incident
that he made the situation pay him
clearing house banks were issuing its fiat
certificates for nearly 500. 100000. and
when nobody outside of the elected few
in Wall street were able to get a. cent out
of the banks In actual money. a favored
group were supplied with abundant funds
to buy panic-stricken stocks. which they
| did by the CARLOAD with the money
rightfuIly belonging to depositors and the
community at large. These purchases
undoubtedly stopped the panic. The bulk
Of ftnY, co1A {tA ~ Sy,
prices which took place during the month
of January, and Al enormous profit was
realized for somebody. 1t does not appear
that this profit went TO the credit OF the
banks which were behind the movement,
or to the credit of depositors and others
who sweat blood because they were re-
fused help in quarters where they had an
entire right to look for it. Probably $780,
100000 or more was taken down in profits
and split up among the ''saviors of the
coo loss. however. 1t would probably have
been charged differently on the books. 1t
is mighty nice thing to be situated so as
to buy the market with other. people S
money and take the profits. The prisons
of the country are full of people who
used other peoples money for speculative
purposes and lost. They are not half full
enough for all members of that class. 1t
is always thus. The difference between
success and failure divides the line be-
kings of high finance. shady transactions
and triumphs of patriotic financiering.
The business situation is full of confu-
sion of facts and confusion of theories as
to the future determined and con-
certed effort is making to have II appear
that general business is improving The
best is made of everything looking in that
direction. The burden of testimony leans
to the view that the outlook is not en-
couraging for a wholesome and wholesale
foSllmntt0n ha ony,ti II,
this great drift of proof are generally
local or special in character.
The railroads. for instance. are, at the
present writing. under the harrow. Their
revenues have been cut down enormously
and from IL to 20 per cent of their equip
ment is idle. They are ordering no new
cars and no new locomotives and are cut
tlng down expenses in every direction
wherever cut is possible. When a car
or locomotive becomes disabled il is side
tracked and another car or locomotive Is
taken therefrom to fill it's place. This
process is going on continuously, and as
there are at least $4,000 idle cars it can
De Kept up for a year or more. even
though LOCO cars day are sent to the
hospital and a proportionate number of
locomotives. When business resumes the
railroads. instead of ordering new equip
ment. will send their broken-up equipment
TO the repair shops The outlook for the
car equipment companies. therefore be-
comes especially blue. Most of them have
already suspended or reduced dividends
and all of them will have to. They are
making no money and the outlook for
improved conditions in that particular
quarter could not we'll be worse That
the lay brother may understand the sig
nificance of this it may be stated here
that the railroad business represents
about 80 per cent of the total iron and
when this great interest is crippled the
effect upon the general iron and steel
trade is direct and in corresponding ratio
to the disability of the Transportation
companies.
In the steel and iron trade the big
manufacturers. led by the United States
steel corporation. are struggling to MAIN
tain prices in the face of reduction of at
least 90 per cent In output. and also in the
face of weak and declining pig iron
market. There Is an established quotation
for northern pig iNon around S16.J0 and
for southern pig iron around $12. 1t Is no
trouble at all however, for buyers to get
supplies under these figures and the dis
tinct tendency of that department of the
market is weak. The prediction is made
by specialists In the steel and from bust
ness that before the decline eliminates
southern pig will be 50 ton and northern
pig 81. How the price of finished product
can be maintained in the face Of this out
look Is something not easily understood.
Nevertheless the trust and its allies are
striving to do this very thing.
According to semi-off1cial reports, the
United States Metal Settings Company. a
concern which handles the bulk of the
copper production. has exported so. 600 900
pounds of copper during the month of
February. This announcement is accom-
panied by the statement that If other SELL
Ing companies did as we'll exports for the
month will exceed 10000, 600 pounds. or
10000 tons. a record-breaking movement.
Apparently about 100000. 900 pounds of
copper have been exported from this
| country In the last five months. or 1870 600
tons. This 10 nearly one-half of the entire
production OF the United States for the
year. What this enormous export move
ment means Is a puzzle to the street. The
inspired talk OF the copper oracles is that
1t Is going into mysterious consumption
nent. The opinion of the cynics, who, by
the way. are in large majority, is that
the stun is simply being planted In Lon
don and Germany and large loans made
on 1t. If this Is the case it is barely
possible that the lenders Of money on the
raw copper, which has been sent from
this country. may be buying the stun in
stead of lending on It, II such be true
the money lenders Of the old world will
one of these days find on their hands q
big bunch Of stuff not always easily dis
posed of.
In spite of the astounding figures OF the
export Of copper the copper shares do not
bull, although frantic attempts are made
Ito talk them up" Even the barkeepers
around the Wall street saloons have a tip
to buy copper and get rich quick.
The market sharps agree very generally
that cheap money is the principal bull
factor. and that 1t may ultimately induce
spectators to borrow and buy stocks for