The Washington herald., 1908-01-27

New York. Jan. 26.-According to the
observation of fairly large number Of
people who may. with good reason, be
called experts in such matters fully
three-quarters of the dealings in stocks
last week were due exclusively to the
operations Of the professional speculative
element in Wall street.
As this fact became more and more
evident as the wetk went on, it tended
naturally to a curtailment Of stock ex-
change business, since even professional
traders themselves became wary OF a
market in which practically the sole
profits that can be attained are those ex-
tracted from ''scalping' operations at
each others expense.
New Set of Spectators.
II is a matter concerning which there Is
no doubt whatever that during the last
year new set of habitual spectators
In daily attendance in the financial dis
trict has been called into being The de-
cline in prices that went on almost un-
interruptedly from one end Of the year 70
the other brought into Wall street class
Of traders in stocks, recruited in many
Instances from the race track and the
gambling house. who were generally
"bearlsh'' IN their proclivities, and who,
as must be admitted made a great deal
OF money out Of the fan in prices that
occurred.
Although the pockets Of these worthless
are now much lighter than they were a
month ago. they are still fairly we'll filed
and their possessors are those who are
not happy unless they are buyi,g or sell
ing stocks each hour of the business day.
It has been. in consequence, largely eof
their laundering around IN the security
market IN the last month that the mar
ket has been more than usually irregular
and confused
At the same time the course OF prices
last week was not without very con-
siderable significance. Il attested that
there had been a revolt in the ranks OF
common sense and conservatism against
the headstrong attempt % boom the stock
market when every reasonable voice was
raised IN behalf Of a cessation for a
time In speculative operations either for
the advance or the decline.
Traders More Circumspect.
II Indicated that a mere era Of cheap
money in the financial district caused
by the pr0stration Of business and the
OF the circulating medium
was not in itself a sufficient reason for
an indefinite continuance Of an upward
in the stock market. There
was obviously an increasing disposition
to look at the facts. as these were daily
presented. regarding the existing state OF
trade and industry in the country.
The truth about this matter is that
stock exchange panic-although il Is well
known that this occurrence was not
stock exchange panic in the strict tech
nical sense Of the word-a more rapid
contraction In business than has ever be-
fore taken place IN our country's history
after any similar period Of financial dis
turbance since the civil war. The con-
traction is still ia progress. It's force was
somewhat mitigated In the first week OF
the year presumably by reason Of the
general belief felt over the disappear
auce of the monetary stringency. but
the Improvement was not continued. and
the reason why such a condition Of af-
fairs has not resulted more disastrously
than 1t has is that great as mas been
the Curtailment of business. the develop
ment Of trade In recent years has been
SO extraordinary, and that furthermore.
and principally. the actual and funda-
mental prosperity is still so strong and
well assured. resting as il does upon the
substantial basis of the great accumu-
latiOn of wealth in the past ten years.
our people pay comparatively little
heed to the slackening Of trade that has
been enforced. It is. however. indisputa-
bic that since October Of last year there
has been a falling away Of from 50 TO
50 per cent in some of the country's most
important lines OF business as compared
with thar of a year ago
Decrease in Railroad Earnings.
Although it may not be fair to take as
a basis of computation here the small
number Of railways that have thus far
reported net earnings for the month of
December, yet eyes cannot be shut to
the fact that the roads that did make re-
ports exhibited a decrease in net reve-
nueS Of 81 per cent II is officially stated
that 3e0.000 or a per cent. Of the freight
cars Of the country are idle It is ad-
mitted that a similar failing of has oc-
CURED in the iron and steel. shoe and
leather, and other great industries. and
that in all probability a reduction of rhe
prices Of the manufactures here specified
is impending. Owing to the lessened use
for sCOal in factories and 10 the mild
weather of the winter season thus far the
demand for bituminOus coal and for an
thracite has been greatly reduced, and II
Is commonly considered that the open
winter has unfavorably affected the busi-
ness Of the country as a whole. Indeed.
there seems to be little doubt that our
winter climate in the northern part of
the United States is steadily changing.
and that Il will be wise on the part of our
business concerns whose profits bear a
slose relation to weather conditions If they
realize the fact. Our winters are no
longer as severe as they used to be, what
ever there is of the winter not beginning
usually of comparatively high tempera-
-ures interspeTsed with violent transforms
and occasional blizzards
There are people, of course. most Of
them being those whose standard Of ap-
Draisement in such affairs is that anv
and all events that serve to reduce prices
IF stocks in Wall street, from no matter
how lofty a level, and If only for a single /
day, are in the nature of dire and un-
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