Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-11-08
Financial News Letter
By ". G. NICHOLAS.

eager people VINO sat up all nlgnt 10 De
in time to get their orders into London
for opening purchases. paid very high
prices for the stocks they accumulated.
and on some of the purchases they have
not as yet seen a quotation at which
they could get out with prift. The
great big broad impulse was bullish and
very clearly showed the presence OF large
outside buying. AS stock market propo-
sition, the theory was wrong that Mr..
Taft's election had been discounted before
the voting began. 1t had been partly
discounted. but not altogether. as the
| tape proved. Whether or not the big in
siders. who had been running the most
stupendous bull campaign in stocks ever
| known, have been realizing by wholesale
distribution of merchandise bought at low
| prices remains TO be seen. The wise
belief in Wall street is that the distribu-
ton has been going on for week or
more. and that the great market manipu-
lators have greatly reduced their lines.
| enough SO almost to make II to their
interest to help along reaction of
formidable proportions. At this writing
there Is no really tangible evidence that
the program outlined is being put into
effect. So far as the searchers after
information are able to see the com
handing influences In the market are still
| for higher prices and are not yet ready
| to unload. If this be the correct dag
nosis. then the discount is not yet out
of the markets situation. Money Is still
| cheap and entirely within the control OF
the same men and the same combinations.
cliques and pools in command of things
| since early last summer. The game Is so
very easy and the inducement so great
that there would appear to be no valid
| reason why the insiders should not mark
! up prices to still higher levels before TAX
| ing profits in the big way which the size
| of the game would justify. However. the
| play is one about which the public can
| only guess. The mechanism is concealed
| from view SO far as the world at large
| is concerned.
Those who attempt to read the market
| are quite as much at sea now as they
| have been at any time during the last
year. All that is known is that the aver
age price of stocks is very much higher
than it was four months ago. and that
in some of the big favorites quotations
are almost back to the highest prices in
| the boom days before the panic.
They have a deep down inward feel
ing Chat is. the non-initiated public has
| the feeling), that this advance is in
by business conditions or earnings of the
| properties concerned. Yet what differ
ence does that make is the inquiry heard,
| so long as the men In control of the
| money market ana STOCK market erect
to carry the play on and mark up prices
still further? There has probably never
been time in the history of the stock
exchange when gigantic and dominating
| manipulation was more plainly in evil
dence or more arrogantly successful. 1t
| is today more than ever before rich
| mans gain.
| The only chance outside spectators
have is to trail their bets with the blue
chips and to depend almost entirely on
the story of the tape for their informa-
| ton. For four or five months the tape
| has told the truth and foreshadowed
the course of manipulation. Yet 1t is en-
tirely unsafe to bet too heavily that this
process is to go on indefinitely. There will
come time when the big fellows win
! harvest the crops they have sown and
bank their profits. Then it will happen
| that the market will experience a big
break. and the sacrifice of the lambs will
| be terrible OF course, the lambs under
stand this in vague sort Of way, but
| they expect in some miraculous fashion
to be advised of the slaughter in time
| never yet occurred. but it Is always
| just going to occur On this occasion the
| larmbs are to be allowed to get away
| with their own feeces and their lives
| About that time hens may be expected to
| grow teeth. Nevertheless and notwith-
| standing. let US all rejoice. for good times
| are upon us and money will grow on
| trees. Everybody can reach up and pluck
,
The important interests behind the big
| industrials are feeling quite comfortable
| these days. The danger of hostile admin
| istration in the White House and un-
| friendly tariff revision having passed. they
| have little to disturb their complacency.
| The future looks smiling. That there
| will be tariff revision everybody knows
| and understands, but there Is a wide diff
| ference in the manner of its perform
do the job. The Wall street view is that
| while the tariff is to be duly revised. ac-
| cording to pledges, 1t will be in the way
of "a readjustment" instead of a cut.
| Nobody is going to be hurt and business
is not to be thrown into q state of alarm
or uneasiness.
The condition of governmental finances
| will not permit any legislation which will
| seriously reduce revenues. We are now
| running along at a rate of expenditures
sum very considerably in excess of visible
means of support. To cut into revenues
would compel the borrowing of large
sums Of money. process which would
| sooner or later arouse the criticism and
opposition Of the taxpaying public. Hence
| our lawmakers will be obliged to look
| with disfavor on wholesale slashing OF
| the schedules.
furthermore, QlO the INDUSTRIAL lTe
| terests contribute handsomely to cam
paign funds for the reelection of re-
publican majority in the lower branch OF
Congress? Ingratitude is one of the
things that cannot be charged up against
republican congresses when 1t comes to
| tariff revision. The standpatters In Con-
gress are still in control and will be able
to prevent their friends from being wound
| ed too deeply. Hence The smiling faces
| upon the managers Of the great Industrial
combinations and the confidence with
| which they look forward to a long season
| of freedom from disturbance. They feel
| that they can make plans for at least
| four years more under the existing order
| of things-with the very least possible
| modification.
| The shares of the United States Steel
| Corporation have reflected better than
anything else the sense of confidence in
the industrial future of the country and a
speedy restoration of boom-time. There
| Is some talk heard Of hard and fast deal
between the incoming administration and
| the steel trust but no proof Is forth.
| coming. 1t stands to reason, however.
| that a business which gives employment
direct and indirect to over 100000 men
and which Is representative Of collateral
industries of even greater magnitude will
| be treated kindly, especially In view of
| the fact that the shareholders in this
group of corporations aggregate 800 900
| to 400, 600 in number.
| Substantial basis exists for evacuation
| of largely increased business in the iron
10 Doll