The morning journal-courier., 1908-11-09
FINANCIAL REVIEW Market Responds to News Evi- dencing Quick Revival of
 Business. N. P. ACTION ENCOURAGING
  Taft's Declaration Implying Tolerant Federal Attitude Bull
 Factor.
N. P. ACTION ENCOURAGING

The release of much industrial ener- gy, held in reserve pending the national election was counted upon with the passing of that event. The record of the past week in that respect was in agree ment with the confident expectation universally held in financial circles In the response of the stock market to the situation, however, there was genuine surprise. As the speculative medium of events to come rather than those all ready accomplished, the action of the stock market indicates that the exten- sive advance in prices which had oc- cured over the level Of last years de- pression, while fully commensurate with the improvement then in sight In the country's affairs, did not begin to provement 10 occur.
 The outbreak of the furor of specu- lation last week Is the more remarka- ble In view of the accurate predictions of the result of the election so far as the great parties are concerned, which were current and were accepted in Wall street before the decision at the polls. It was the common expectation of the professional speculative element based on these conditions and on the fact that prices were brought on the eve of the election to the highest level of the year, that abundant supplies of stocks would be offered to meet every possible demand which would be at- tracted from the less practiced specula. tive public and from investment sources. There were few observers In Wall street who had not given tho ad- vice that the first after-electlon rise in prices would be followed almost cer- tainly by sharp reaction. The pre- liminary speculation had been so heavy and so long continued that the effort on It's part to realize profits was expected to carry prices backwards before the rush to turn paper profits Into cash. The thrush of new demands for stocks on the contrary has been sufficient to sweep up all selling to realize with a sustained upward movement of prices which has brought back the speculative professionals themselves Into the mar ket after temporary retirement in the movement to take their large profits.
 The news of the week contained plentiful evidence of the quick move ment that has occurred towards re- vival of industrial and commercial activity following the election. The response in this field apparently ex- ceeds as much the expectation as does the market movement of stocks. On appresension dispelled by the result of the election and which was lost sight of in the consideration of the larger results was that the minor po- lltical parties would reveal a growth of revolutionary doctrines that would serve as portent of future dangers to capital and property rights, even if no concrete results were achieved It is fair to assume that the restrain. ing effect of this apprehension on con fdence of capital and business enter prise was greater than was supposed in view of the violence of the effec of the larger results, which were pre- dioted with full accuracy. The unIm portant part played by the minor par ties in the election seems to have dis pelled this anxiety fully, There car be no doubt in fact that financial sent iment has read in the result of tn, elections a revulsion of sentiment fl the country from the spirit of hostil ity to capital as 1t Is embodied in thu great corporations, Judge Taft speech to the Commercial club O Cincinnati, although protesting adher ence to the Roosevelt policies an, warning offending corporations of tn purpose to pursue and punish them was seized upon with avldity to indi cate immunity from further irksom restraints, with furious effect on tn speculative situation.
 The decision of the Northern Pacif directors to distribute $11.26 of conceale assets to its stockholders was inter preted, also, as braving of formerl hostile public sentiment which was dl rected by state legislative acts toward limiting freight charges by the com pany Opposition within the board { the assumed impoicy of this cours has delayed this intended distrIhuto 9 for nearly two years past. The as sumption of more tolerant public senti ment towards corporations finds eS pression also in the unconcealed de termination of the railroads to secur higher rates for freight than they hay hitherto enjoyed The knowledge of
 concerted movement to this end credited large influence on the ani mated speculation in stocks Whic gained volume as the week progressed The enthusiasm of the speculation owe much also to that conditions favo quick recovery to an extent unusut after financial crisis" Besides tn usual accumulation of large none supplies, usual at such times there the certainty felt that the improve control of processes of productio which characterizes the present period has prevented the accumulation q stocks that has proved a drag on pre- vious periods of recovery from depres sion.