Omaha daily bee., 1908-11-09
RISE In PRICES OF STOCKS
Continued Advance of Market Causes
Surprise,
REACTION FAILS TO ARRIVE
Demand IL Sufficient to Absorb Real
ixinE sales-ImprOvement I'm the
Situation IL Greater Than
Expected,

NEW YORK, Nov. 9.-The release Of
much industrial energy, held in reserve
pending the national election was counted
upon with the passing Of that event. The
record of the last week in that respect was
an agreement with the confident expecta-
ton universally held in financial circles
In the response of the stock market to the
situation, however there was a genuine
surprise. AS the speculative medium Of
events to come rather than those already
accomplished the action of the stock mar
ket indicates that the extensive advance
in prices which had occurred over the level
of last years depression, which fully COM
mensurate with the improvement then IN
sight in the country's affairs, did not be-
gin to measure the hopes of the ultimate
Improvement to occur The outbreak of A
furore of speculation last week was a re-
suit of the election, so far as the great
parties are concerned, and was accepted in
Wall street before the decision at the polls.
1t was the common expectation of the spec
ulative element based on thes conditions
and the fact that prices were brought on
the eve OF election TO the highest elevation
CT the year, that abundant supplies Of
stocks would be offered to meet every pos
slble demand witch would be attracted
from the less 'pEacticed speculative public
and from investment sources.
Reaction Fails to Come.
There were few observers in Wall street
who had not given the advice that the first
after-election rise in prices would be fol-
lowed, almost certainly by a sharp reac-
ton. The thrush for stocks, on the con-
trary has been sufficient to sweep all sell
ing to realize with a sustained upward
movement of prices. The news of the week
contained plentiful evidence OF the quick
movement that has occurred towards the
revival of Industrial and commercial &C
tivity following the election. The response
in this field apparently exceeds as much
the expectation as does the market move
ment of stocks. One apprehension dlspelled
by the result of the election and which was
lost sight of in the consideration of the
larger results was that the minor political
parties would reveal a growth of revolu-
tionary doctrines that would serve as a
portent of future dangers to capital and
property rights, even II no concrete results
were achieved.
Effect of Taft's Speech.
The unimportant part played by the minor
parties seems to have dispelled this anxiety
entirely. There can be no doubt, in fact
that the financial sentiment has read In
the sentiment of the elections a revulsior
of sentiment in the country from the spirit
of hostility to capital as II is embodied In
the great corporations. Judge Taft's speech
to the Commercial club of Cincinnati, al
though protesting adherence to the Roose
welt policies and warning offending corpor
ations Of the purpose to pursue and punisl
them, was seized upon with avidity to in
dictate immunity from further irksome re
straints with serious effect on the specu
lative excitement. The decision of tn,
Northern Pacific directors to dlstribut,
1926 per share OF concealed assets" to IL
stockholders, was interpreted also as
Drawing of formerly hostile public senti
ment, which was directed by state legis
lative acts toward limiting freight charge
by the company.
The assumption of more tolerant public
sentiment towards corporations finds ex
preston also in the unconcealed determi
nation of the railroads to secure highe
rates for freight than they have hithert
enjoyed. The knowledge OF a concerto,
movement to this end is credited with larg
Influence on the animated speculation Il
stocks which gained volume as the weel
progressed. The enthusiasm OF the specu
lation leaves much to the conviction tina
conditions favor a quick recovery TO al
extent unusual after financial crises.