Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-10-04
Financial News Letter
BY W. G. NICHOLAS.
Special Correspondence of The Star

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practically abet on the November cleo
ton. The bulls are betting that Taft will
win and a majority Of the bears that
Bryan will be the next President. Inc
strength of the market and it's tendency
to recover sharply from reactions is an
expression of the dominating feeling In
Wall street. AS some of the market lead
ers put it, Every man who buys stocks
and puts his shoulder under the load Is
betting on the underlying good sense OF
the men Of America" These people can
not bring themselves to BELIEVE that II Is
possible for property owners and nusrhe nf
election, will allow a change in pol'lcaI
control at Washington. For the most
part they admit that the outgoing ADMIN
iStratiOn has not been ideal from pusl
ness standpoint but they do not see how
Mr.. Bryan and his associates Will be any
Improvement, whereas on the contrary
they have faith in Mr.. Taft's hard morse
sense and native adherence OF the roueh-
house. methods of running public aHalrs.
Instead of becoming frightened as eiec-
ton approaches these men grow stronger
In their belief that the verdict at the
polls will be for continuance or repuo-
lican control at Washington. TINS ele
ment is in entire command of the marker
situation and has been for the past TOUR
months. 1t shows no sign of weakening
it's control. On the contrary, 1t is IN
stronger position now than at any time.
1t can get all the money from the banks
and trust companies 1t may need 1or mar
ket operations.
At the present time it owns vast ac-
cumulations of securities and 1t has the
say as to what shall be done with the sur
plus Of the banks. 1t no doubt reduced
its holdings of stocks on the recent cfi-
max to the great advance in prices. but
has probably replaced it's line, In part, at
least, on the harsh reaction, from whlcn
there has been partial recovery. Inc oan-
gerous feature of the colossal bet winch
the men have been making who represent
this group of powerful capitalists is mat
they may be too cock sure OF the result.
They are blindly and almost REALISTICALLY
certain Of Taft's election. They are as
sure of the vote as though 1t had already
been counted and have no patience win
any other view. They know, and that Is
all there Is to it, Feeling thus and peipg
potent in their influence with the banks,
they are having things all their own way
in the stock market.
For a stock market that is all politics.
very little is being said in a noise-making
way about politics. The big men do not
like to get out into the limelight for fear
their open preferences might hurt their
candidate The wise men from the po-
litical headquarters are not so much In
evidence as usual, because, as stated IN
previous letters, they are in state OF
uncommon confusion themselves over re-
ports which are received of political con-
ditions throughout the country. Those
among the politicians whose judgment Is
worth having frankly admit that there is
a larger element of doubt than In any
national campaign since 1892 when C.eVe-
land and Harrison were opposing each
other. On that occasion there was great
Indifference on the part of voters because
of a prevalent feeling that the country
would be safe under either.
In this campaign very considerable num-
Der of voters in both parties see small
choice between the rival candidates and
platforms and candidly confess they do
not care much who is elected or defeated.
Wall street hears that the real leaders of
the two parties are wholly unable to de-
termine the extent or magnitude OF this
apathetic element of the population. and
upon that may hinge the result. The re-
publican managers have got to the point
where they admit that they look for
decided falling off in republican MAORI
ties, but they insist that the margin is
big enough to stand all the losses that
will be incurred. AS far can be as
certained in this neck of the woods. polls
taken of Industrial establishments and
communities fail to disclose landslide
tendencies toward democracy. although
in most instances what shifting there is
reported is to Mr.. Bryans advantage.
of disappointment by the Bryan man.
ayers, a fact which has come to be known
In the financial district.
Wall street gets the impression that tina
democratic national campaign has latter
ly been losing ground rather than gain
ing. Some such impression seems also
to prevail among the leading democrats
and they feel the need of sustaining tonic.
They have only four weeks more in which
to do their work and 1t remains to be seen
whether 1t is within their power to ac
complish results. They have material
enough for sensational disclosures of
damaging kind but a doubt exists wheth-
er they have the nerve and the machinery
for a fruitful use of such material. Indi-
cations are that they have not
X X
Railroads are making great records for
economical administration and operation
Statistics which are coming to hano
show substantial uniformity in savings in
operation. The returns Of gIpss earnings
continue to be unsatisfactory, but on the
other hand the Arrangements seem to
nave SUCCEEDED In cutting QOWn expenses
so that comparisons of net earnings are
all that could be asked by stockholders.
1t transpires, however, that the bulk of
this saving is at the expense of labor,
which in turn ~impairs the buying power
of consumers and retail buyers generally.
This is not a wholesome sign and suggests
retafdatiOn of return to good times, for
good times must begin at the bottom and
work up. There can be permanent
return of prosperity until the multitude
ceases to feel the pinch of reduced in
comes.
Meanwhile. money continues in plethoric
abundance, although complaint is unlVer-
sal among business men that 1t is hard
to get it except on securities which can
find a quick market. Thus it is that the
idle money is at the command of specu-
lators and that legitimate business Is
openly Disseminated against. The econ
omies which are being rigidly practiced in
every line of corporation and private bust
ness has been likened to blood letting to
the weakening of the masses of the peo
pie. 1t is on the multitude of little folks
that the burden of existing hard times
falls most grievously.
Since his return from Europe Judge
Gary, spokesman for the steel trust, has
been interviewed several times and has
Issued a number of denials of campaign
yarns relating to steel trust matters.
Among other things he has been at pains
to say that the United States Steel Cor
poration has not given employment to