Bisbee daily review., 1908-12-27
MARKET SUBJECT
TO MANY WH|NS
Hayden Says That Smallest
Excuse Is Seized Upon To
Lower Prices,

Tn6 market apparently is entirely
subject to the within of cliques of pro
fess:onals, which for the time being
happen to be bearish. With these
operators in the ascendency, every I'M
favorable factor is seized upon to de-
press prices, while factors of broad
er significance, If OF n reassuring ma
ture, are entirely ignored.
A very good example OF two such
opposing factors, one of a temporary
unfavorable nature, and the other sig
nificant of a permanent Improvement,
occurred in tae declaration Of war of
Venezuela, and the announcement of
a large steel rail order by the Penn
sylvania railroad. I
We find it difficult to take the first
very seriously. The interests involved
are not weigaty enough to make it
seem possible that any great amount
of men or wealth could be sacrificed
in such a cause; yet this has served
as an excellent weapon in lowering
prices.
On the other hand, Pennsylvania
enormous order for rails has appar-
emily been quite passed by, though
one of the most significant events
that have occurred since the depres
sion. The object of the railroads tLt.
past year has been to reduce expenses
no correspond with the shrinkage i'll
income. an entirely praiseworthy OBJ
ject. and accomplished-for the most
Ipart-with little skimp'ng in the main
tenance of the properties. Yet cut
ing down operating costs. and the en-
tire abandonment of expansion spell
hard times as long as persisted in.
so that this order for rails should be
especially welcome, as one of the first
moves of Importance in the right di-
rectiOn.
If this were not to be followed by
similar orders, there is no reason
why it should exert any particular in
| fluence, but this is hardly conceivable.
A repetition of such orders by other
roads spell prosperity, and, therefore,
such announcement is of the utmost
significance, and though disregarden
| for The present, is bound to be re-
| Elected later.
II this We're not to be followed b!
similar orders, there is no reason
why it should exert any particular in
| fluence. but this is hardly cOnceiv
able. A repetition or such orders by
other roads spells prosperity, and
therefore, such an announcement is
of the utmost significance, and though
disregaTded for the present, is bound
to be reflected later.
In other words, the market having
some time ago fulfilled its function
as a fOrecaster, there must ensue a
period of hesitancy, and the bears
are taking the utmost advantage OF
! this, assisted by one or two disquiet'
ing, but for them, very lucky events,
to hammer prices.
We consider, however, that both un'
derIying, and technical market condt
lions are such that an attack of this
kind cannot be carried very far.
Brokers' commitments are light; there
Is almost no forced selling, and it is
inconceivable that anything at all re
sembling a panic can be started, with
the public interest in the market so
light.
The last few weeks we have pur-
pOsely taken rather a shOrt-range
view, and discouraged immediate
large commitments on the bull side.
Now, matters are so shaping them
selves as to make it advisable-once
more-to emphasize the broad view.
This may be summed up simply by
sayng-that recovery has a very long
way to go before reaching its climax.
1t is that further recovery, and the
advance beyond any point that this
country has reached in the past, that
is the chief concern of this market
and not temporary drive by bear
cliques. This retrograde movement
has too nearly spent its force now to
make 1t worth while to join at this
late date. The thing to- do is to stand
| pat or if possible-add to ones
! holdings