Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-03-29
Financial News Letter
BY W. G. NICHOLAS.

SpeNidl Iispdon W uc .'tni'
NEW YORK. March 2S.-On the ad-
vance. which was largely manipulated.
there occurred very liberal liquidation
of patiently held stocks and of stocks
bought by the organizers of the bull cam
paign. The public came in quite freely
after the market had enjoyed a con-
siderable rise and at this time is carrying
the great bulk of the floating supply.
This has been the first real chance over
loaded banks and trust companies have
had to get rid of stuff which has been
incumbering their vaults since the panic
and before. It'is almost unnecessary to
say that they took advantage of the open
ing to tighten the burden and get rid OF
their surplus collaterals.
The way the market kept on advancing
confused and amazed the sober sided
people who had entirely underestimate
the lifting power of hot air. political and
otherwise. The news from Washington
and other centers of political inspiration
all contributed for d time to the bull
campaign. 1t couldn't have been made TO
order to fit better into the plans of those
who had organized the play. The public
was found in the right spirit to accept
everything that came along as bull
factor and a powerful element in Wall
street gave a healthful boost every time
fresh bulletin came over the wires
The Presidents manifest anxiety to do
something to offset the harm he may have
previously wrought by alleged intemper-
ate outbreaks against capital and credit
was construed being especially bullish.
1t has been a good while since the Presi-
dent could be utilized as bull card in
the stock market. The experience was
novel and joyful. Even that remarkable
production of the Civic Federation, Com
pers. Bonaparte and others were hailed
as about the biggest thing that ever hap
pened, and as blazing the way for the
coming millennium. when our entire
So 600. 600 people and the rest of the world
would lie down together in happiness and
| content
| The Wall street crowd. however. elected
| to take the joyful view and continue to
| whoop 1t up OF course. later on Congress
may take hand In the matter. although
as everybody knows who is familiar With
Washington. Congress is always delighted
to adopt and enact into law bills framed
by self-elected guides and instructors.
Congress is always willing to admit that it
does not know its business and to humbly
accent the guidance of outsiders. The
records are full of cases where Congress
has broken its neck to carry out the half
baked idea of volunteer guides, phloso-
piers and friends; aber NIGHT. However.
the congressional outcome will be known
later. 1t usually is. Then there will be
time the dance will proceed.
The message of the President, follow
ing the Introduction of the amazing Hep
burn grand pacitication bin, was found
to have been discounted to a Very large
extent. II was also found on examination
that the Supreme Court decisions on the
rate bills of Minnesota and North CarOi-
ma were less important than first sup
posed. they not denying previously estab-
lIshed rights of states over the matter
81 to Lott hut "a IL
ing halt in state attempts to go too far.
II was conceded finally that the legsa-
lures of the states named might re-enact
the rate laws in conformity with the court
decisions and still retain a good many
teeth and claws
1t is really a shame to throw in a dis
cordant note when everything is so
bonndlessly pleasant and when every
body is bent on feeling good and making
the whole community feel good. but the
cold fact is that of actual visible i'm
provement in the business situation there
is very little to justify the uproar which
has been witnessed in Wall street during
the last two weeks. The real Improve
ment discernibe in the industries. in rail-
road traffic and in general business is SO
slight as to be almost imperceptible. The
uplft in prices of stocks may be very
largely attributable to political effort Il
create a restoration of good times by
proclamation of good intentions and by
conversational effort. This effort has
been backed very industriously by large
Wall street contingent which had stuff 10
sell. and 1t was labOrng might and main
to put prices up that it might unload.
There was a great deal OF confusion in the
popular mind what might be really go
ing on, but nobody appeared to give much
thought to that fact. Such little diverg
enceS as Supreme Court decisions knock
ing out state rate laws. the introduction
of an admnistration-Civc Federation bill
centralizing all mundane authority in the
Presidents hands. and of Secretary Taft
making a speech in advocacy of state
rights-these ali in one day and evening
were taken Of one piece. all halcyon
and all reasons why prices should go
higher on the stock exchange.
The operations of the United States
Steel Corporation become more wonderful
to the human comprehension the more
closely the annual report is examined and
analyzed. The giant trust has what
might be called a free banking capital of
at least S150,OD.OO. This does not APP
pear in any consolidated statement and
has to be dug out piecemeal For instance
at the end of 1907 there remained uneX-
pended of money appropriated and set
aside for new construction $1aoOO,OO in
round figures. In addition thereto is
found SOL, 10000 cash on hand $6,000COO
loaned on collateral. 81, 100000 loaned on
call, SS,StO0OO invested in marketable
bonds and stocks and divers millions to
the credit of sinking funds and other ac-
counts. 1t is carrying on its books $1S,
OO0OO0 bills receivable. and there also APP
pears in the inventory material, raw or
in process of manufacture. to the value
of about $4O,OUOOO0. What's the use of