The Birmingham age-herald., 1908-05-17
NICHOLAS WALL
 STREET LETTER Market Masters Are Running
 Away With Prices POOR BEARS ARE WHIPPED Demonstration Follows Demonstration on the Stock Market-Plan of
 Advancing Freight Rates
 Is Still Discussed.
POOR BEARS ARE WHIPPED
BY w. G. NICHOLAS.

BY w. c. NICHOLAS.
 New York, May 15-ts tspeeial)-Th mar ket masters are apparently unwilling to surrender the advantage they have gained and are not content to merely hold stock prices around an established | range. Demonstration follow demon stration and the bearish element has been treated to a series of punishments, each latest one being worse than the one pre- ceding. The poor bears have been so i thoroughly whipped that they will hard ly recognize a genuine reaction if one should occur.
 There will have to be break of sev- cral points before they will regain suffi- cient courage to go at it again on d wholesale scale Meantime the bulls are making what capital they can out Of the widespread disposition to boost along l the campaign of good will and hopeful ness embodied in the actively pushed gospel of sunshine, bright eyes, let us i alone, oh, be cheerful propaganda. This is the first organized effort to put the faith cure to vulgar commercial use in a national sense.
 The beautiful theory propounded by Mother Eddy has been heretofore confined chiefly to the aleviation of physical suf- fering and to matters pertaining to the soul Its invasion of the grosser field of business is yet too new to measure re- suits The experiment Is nevertheless in teresting in the highest degree, and all ! though possessed with spirit of sceptlc- ism the manipulatiVe managers of the street are quite ready to accept help from faith cure quarters or any other old quarters prepared to put shoulder to wheel.
 The writer asked the president of large southwestern railroad system how the sunshine scheme was working in his part of the world
 Fine" he replied. People are talk ing much more cheerfully and are gen erally taking d more hopeful view of the future."
 Does this spiritual improvement you nOte find expression in increased tonnage, enlarged bank clearings, the re-employ- ment of idle men and things of that sort?"
 Not yet"
 How are earnings?"
 Rotten
 And rotten" they continue to be on most of the railroads, though some all lowance must be made for unfavorable reports of earnings just now. suspicion
 
 the canny play of making a sour face ill excuse for the elevation of freight rates. It is undeniably true that the bulk of reports of business sort reflect bet ter tone and encouraging signs of slowly returning confidence. Everybody is watch ing anxiously to see if this is going to materialze into real action.
 Naturally, however, the increasing heat and uncertainties of a political campaign continue to exercise d restraining infiu- ence on enterprise and check constructive investment The present policy of the leaders of the money world is to wait awhile" until political forces and cur rents take more definite form and drec- tion. This course does not prevent the same leaders of financial action from en- couraging the investment of accumula- tions of idle money in the new corporate bond and note issues which are now being industriously rushed out to the aggregate amount of hundreds of millions of dol lars The sustained strength of the stock market contributes to the confidence es- sential to continuation of the bond and note buying now so much and so brightly In evidence.
 Incidental to this eager popular de- mand for the new issues we have the inspiring sight of the grand charge of the captains of the railroad industry on the reservoirs of small change and of the yellow backs. The most notable fea- ture of this rush of the big fellows 10 make up all the available capital in sight is that they are succeeding in their de- sign. They are getting the shekes in great chunks. The really hopeful thing about all this is that while a very large part of the mass of money which is get ting into these new things will go to pay off indebtedness previously incurred. some of it will be employed in new enter prise and in the completion of partly or wholly suspended plans of betterment and progression. This may be the lever to start the vast machinery of industry again. Such at least is the hope.
 Of highest real market importance Is the railroad scheme for the raising of freight rates in order that dividends may be maintained and work given the great army of employees without reduc- ton in pay. At first blush there would seem to be total economic inharmony in the face of hard times and reduced tonnage. A lot of hot talk and discus sion has already been indulged in about the folly and indency of the railroads in this seeking cold blooded to add to the burden of an already oppressed and grooming situation-everybody gasping for breath and fighting for life.
 I the railroads might not have to go for large justification beyond the sweeping fact that we are in period of stupen1- GUS gold expansion-the greatest the world ever saw-an era of diminishing buying power for the dollar and of the marking up of prices all along the line for things bought and sold. The dollar does not go as far by 25 to 50 per cent in the pur- chase of most commodities entering into general use as it did five or six years ago. It does go as far or farther, how ever, in the purchase of passenger trans portation on railroads. In the matter of freight rates there has been moderate mark up, say 10 per cent to 15 per cent, but they are still back out of line. The move for an advance in the schedules is an effort to get in step with the cease less on marching procession. It is noted in this connection as a curious and as yet only dmly understood development