The morning journal-courier., 1908-05-11
STOCKS ADVANCING
Real Revival of Confidence I'm peded by Manipulation
 Movement.
BIG FINANCIERS CONTROL
Henry Clcws Considers Proposed Ad- vance in Freight Rates Ill.,
 Timed.
lSpeclnI CorresponIcnceh

New York May l0,--Stocks have ad- vanced from 10 to 30 points since the October panic, and strong efforts are being made 10 carry them to a stlll higher level The query now Is: Win these efforts succeed, and If so, on what grounds? Of course the greater por- ton of this rise was the natural re- bound following the panic when all se- curttics fell far below their intrinsic value owing to compulsory liquidation and loss of confidence The natural level of prices to be expected after the panic would depend upon a proper re- adjustment to reduced net >earnings and to the lower rates for money which were bound 10 follow the crisis. While the general depression Of business was an adverse factor Go stocks, the great decline in money was an equally bull- ish factor; and the play for mastery between these two forces finally result ed in partial victory for the latter This is the history of all panics, since easy money Is an argument for the rise that cannot be indefinitely resisted.
 In tho present instance the advance movement has been unquestionably prolonged by power manpulatlon No important recession, such az would have broadened the market and at. tracted an outside interest. has yet been permitted. On the contrary, prices have been pushed upward with a per- sistence that impeded rather than en- couraged a real revival of confidence lt was evident that the market was In control of exceedingly powerful oper ators, whose purposes were not at first very clearly understood It Is now full ly appreciated, however, that the chief support comes from those interested In financing the requirements of the 'rail- roads and other big corporations dur ing the current year. The exhaustion of the supply of capital in 1907, and the panic which followed, put stop to many Of these demand; but. now that money Is easier and capital Is coming out of hiding, there is a rush to secure of all available supplies It is estimat- ed that between s250, 00000O to $500 0OO, 900 of note bond and stock issues will have to be taken care of during the remaining eight months of 1908
 whether the proposed advance in railroad rates is part of the scheme to advance the market or not remains to be seen. Such an advance under exist ing conditions would certainly be very poor policy, The public hostility to railroads is just beginning 10 abate; the extreme depression in freights will not last. and tho advance would be a burden upon the producer and consum- CT when he is least able to bear 1t. No doubt that the railroads have a griey- ance; but they must do as others arc doing, cut expenses to the limit, endure temporary shrnkage in profits, and await the resumption of traffic that will | surely come in time Any other policy will certainly revive public hostility and react unfavorably upon the rall- roads themselves They had better ac- cept their share of diversity the same as other people, and devote themselves 1 to economy and keeping down expenses until business reviyes
 HENRY CLEWs.