The Washington herald., 1908-05-18
Business World Believes
Prosperity Is Restored.
AVERAGE RISE $50 A SHARE
Some Speculation as to whether
Optimism Is Cause OF Eject Of
General Advance in Quotations OF
stOcks-Recent Advances in July
Options wholly Speculative.

better feeling was the cause of the rise
in the stock market. or whether it was
an effect produced By the rise, was q
matter concerning which opinion was
more diverse
Naturally enough, the rise OF over so
share in the average price Of stocks
since the panic. most of it having taken
place within recent weeks, has inspired
people owning investments that were
carried through last years disturbance
with a good deal more eheerfulness than
that which was at one time felt by
them; and this has undoubtedly encour-
aged more liberal personal expenditure
In certain ways and has net been with
Out effect In the business world.
People in close touch with commercial
and mercantile affairs declared almost
unanimously however that while senti-
ment has improved in business circles,
buying orders have not enlarged, and as
attesting this fact the report Of the
American Railway Association. showing
great increase in the number OF idle
cars In the last two weeks Of April, af-
fords a positive proof Another indica-
ton OF no less and even greater signih-
canee is the decline in the country's for
eign trade, exports and imports both fall
ing Of in a sensational way
Grain Export sales Small.
Although foreigners have purchased a
good many contracts calling for the
future delivery OF grain, sales OF wheat
and corn for immediate export have been
small.
But the greatest reduction has been IN
cotton. the commodity which, as is well
known, is by far the most important ar
ticle OF export we have; and it must be
admitted that the prospects here are not
bright for any enlargement Of our COM
mand over the international financial sit
ua;ion BY reason Of greater shipments OF
cotton during the remainder Of the year
The carryover II cotton from last year
crop was large. the prospects for ols
crop this year are excellent, and reduc-
ton IN the consumption OF cotton mas
taken place which is estimated at 2,Vo,es
bales a year All this makes weight VI
cotton resting upon the market when
must. unless demands for consumption IN
crease in an extraordinary way, press
heavily upon the price Of the staple, The
recent violent advance IN the price of the
July cotton option in the New York mar
ket was OF course a purely local move
ment arising out OF the exceedingly smal
quantity Of cotton now available for de-
livery in this city; and had the corner
in this option been continued q little Whlis
longer il must inevitably have oroAeh
owing 70 the large quantities OF tAe
product which were On the point OF De-
ing shipped here from the South
People Highly Speculative.
No one who watched the lively course
Of the stock market last week could deny
the fact that ours is e highly sanguine
and. II the truth must be confessed,
highly speculative people; nor Is it indeed
other than fortunate, considering the gen
ersI interests OF the whole country, and
in the long run. that this is so. No other
race of men with character not similarly
endowed could have subdued this great
continent within so short a space Of time
ana wrought the things that have been
wrought here.
The cheerfulness that no disaster can
sunpress. an optimism rarely obscured
and quickly reappearing when tempora-
rily eIouded and a restless spirit OF en-
terprise and willingness 10 take chances
these are the qualities that have been
needed 70 develop our land, rather than
instincts in which prudence. caution, and
conservatism predomlnate. For the help
they have given. however, we have had
to pay a price, and this price has been
widely fiuctuating financial and COM
modify markets, a relative instability OF
values, not infrequent financial panics, a
popular emotionalism and impulsiveness
that have been easily stirred TO legisia-
tion Injurious TO property rights by dem
agogues in both political parties pos
sessing the gift of CAB, and finally the
bringing up OF a breed Of gigantic stock
market gamblers.
All Expenses Increased.
In 1865 there eliminated here the great
est boom" that the nation has ever
witnessed. In this period the. cost OF
living, the price OF labor. and the eX-
pense of conducting any form Of busi-
ness operation all rose to such extremes
that business finally became paralyZed,
and. so TO speak, many people bank
rupted themselves in the effort 10 keep
up with prosperity. These forces were,
multiplied by the waste and destruction
of wealth involved In the Russo-Japa-
nese war, IN the San Francisco earth
quake, and in an overexpansion of busi-
ness in Europe. as well as In the United
States. The cure in a normal fashion
of this state of affairs was artifeiaiiy
delayed in 1906. the result being. OF
course, the financial hurricane of last
year: and now that the storm has passed
and money is once more accommodating
in places Of deposit, the voices OF the
same Spectators in Wall street whose
excesses brough on last years time OF
trouble are heard loudly proclaiming that
everything Is again all right; that the
difficulties Of 1907 were due only 10 a
temporary deficiency In the amount of
money, which Is now entirely at an end;
that political apprehensions are bsseless,
and that there Is no reason why great
advance In the stock cannot once more
be resumed.
VIII Delight All Glasses.
No one will be more delighted at this
prospect than the conservative business
men or the mass OF people of the land.
II II is indeed assured, and credit will be
heartily and unstintedly given TO those in
Wall street whose vision seems so much
clearer on the subject than the great ma
jority of their felow-rnen, and whose
courage is unquestionably greater. If so
soon after such a blow as that dealt in
the fail of last year TO the business and
finances Of the country a complete and
sound recovery can take place, the cir
cumstance will form the greatest testi-
mony ever offered 20 the Intrinsic Fesili-
eney and strength OF American industry,
and there will be no disposition in any