Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-06-28
Financial News Letter
BY ". G. NICHOLAS.

NEW YORK. June q. 1905
The stock market reflects disappoint-
ment in estimates Of the volume and i'm
portancs Of general business improvement :
1t also reflects a deep down and wide
spread uneasiness and uncertainty over
the political situation and outlook 1t is
now a recognized fact that the industrial
and trade revival. which started in a
couple az months ago. is not coming up TO
exrectarions. either in degree or in DUR =
ton The Improvement is going on. how
ever. but too slowly to suit nervous and
sanguine people. and far short OF the
anticipations Of the SPECTATORS. who
jumped into the stock market and in
six weeks put prices to where they might
have gone naturally and legitimately In
six months. In other words. the big
gamblers in stocks misjudged the business
situation and discounted at least half
years Improvement. 1t now remains to be
seen whether the market Will hold any
where near the recovery established. or
whether 1t will settle back to where 1t le-
ultimately belongs. On this issue there is
a very decided difference OF opinion.
4 +
It is unquestonably true, however. that
there is a growing bearish sentiment
among conservative people. They feel that
the bullish elements have been over
worked and prices put too high. At the
same time technical conditions deter the
creation Of an unwieldy short interest. A
small group Of tremendous market specu-
lators having unlimited command Of a
great mass Of idle money in the New York
banks and trust companies have shown
their power and ability to run bull
campaign in the face of apparently strong
adverse conditions. With this reco1iec-
ton fresh in mind they are indisposed to
run any risk Of further cruel punishment
like that inflicted upon them during the
they do not care to sell themselves
blindly into hole or to put temptation
in the way Of the Harriman-Frick-R Rookie
Teller combination OF rough riders and
hard hitters.
They argue that nothing would suit this
tremendous combination any better than
the development of a short interest worth
while getting after and ripping up the
back. These same big fellows having for
the time being withdrawn from active
manipulation on an important scale. the
market continues narrow and dull. 1t
has been left again to the mercies Of the
professionals and fraction chasers on the
stock exchange. Occasionally the aggre-
gate OF days sales rise above 100000
shares. but the average is away below
that figure. and everybody seems afraid
to venture Tar from shore.
Politics. too. is factor in the stock
market situation. Wall street. while In
clined to accept with good grace the nomi-
nation OF Messrs. Taft and Sherman. is
manifesting no enthusiasm. Ordinarily
the gambling men Of the street would be
working themselves into a state of violent
~if hut l, &c
year hardly a peep is heard In that direc-
ton. Nobody appears to bet q dollar one
way or the other. although there was
some idle talk in the beginning Of a desire
to lay odds OF to 1 on Taft against
Bryan. il the latter should be nominated
Even this feeble vocal demonstration has
been stilled, and conversational specula-
ton ranges from even money to 10 TO l.
Those who are best acquainted with act
ual political conditions harbor no delu-
sions, however. They look for desperate
rough and tumble campaign in which the
rules Of the game will be forgotten and
soug1ng and kicking freely INDUCED in.
That the campaign will be one of over
shadowing Importance to railroad and the
industrial interests is freely admitted,
and for that reason the developments as
they occur are likely to exert sharp and
decisive influence on prices. With the
captains of industry it is not sufficient to
remember that for the next two or four
years they will be protected by a republl-
can majority In the Senate. even though
the democrats should win the presidency
and the House of Representatives. They
understand quite well that with reduced
Senate majority they might not be able
to command that degree of protection they
would like. inasmuch as a large element
OF that majority has decided leaning to-
ward real tariff revision downward"
They are, therefore. earnestly anxious
for republican success.
With the railroads there is as yet
spirit OF seeming Indifference National
and state administrations regardless of
politics appear almost equally hostile in
the matter of rates and other regulations
and they may decide that with them the
question will resolve itself anyway into a
simple one of endurance. All these things
are certain to be thrasied out during the
campaign and to be features of live mar
ket effect. Thus while the outlook for
the summer is not such as to indicate
broad speculation with enlarged popular
interest therein. there is reasonable as
surance of wide fluctuations and more
than the average chance for live traders
to make or to lose money.