The sun., 1908-03-22
nNayci,L .,yD COnHrRcIlL
suuUnt, March q.

There was but ono feature in the stock
market ro.Iay. and that was the steady
continuation u ne RISING tendency.
lrIccs advanced to the full average high
!eyel Of the current movement touched AZ
the beginning Of the week, these figures
being also the highest OF the year, and in
some instances to-day new high records
for the year were established The market
rose quietly but steadily throughout the
morning. falling little at the CLOSE under
the usual amount Of profit taking, but still
wing quotations at considerable gains.
Possibly the strength to-day WAS due largely
70 the buying back Of stocks sold specula-
lively for the decline in the middle OF the
week upon the presumption that values
would react more than they did. The rank
ard Tile Of spectators have In general
badly misjudged the market in the last Few
weeks, that ia to say they have under
estimated its strength. Looked for recess
sions after advances have either not oc-
CURED, at oil or have been but slight, and
even those who have INDUCED in operations
for the rise have frequently sold their stocks
only to buy them back again at higher
range The substantial factors In the
market continue to he the scarcity Of stocks
owing to the heavy purchases for invest
ment made during last years panic, the
existence Of 4 large and stubborn short
interest and improving conditions not only
In the world Of business but IN politics.
To-day the buying power in the market
was distinctly increased by the consldera-
Non given over night to the annual report
Of the United States Steel Corporation pub
lshed yesterday afternoon. The report
disclosed great surplus aud enormous
expenditures for improvements and addl-
lions of new property made entirely out OF
earnings and these facts coupled with the
magnificent reputation which the corpora
tion now enjoys for sagaCity and cOnserva-
ttsm of management, leave It beyond all
reasonable peradventure that the continu-
ance Of the present dividend distribution
on the corporations common shares IS
secure even If longer period of business
depression awaits the country than il now
commonly anticipated. The renewed buy
ing of United States Steel common shares
to-day was therefore but natural, as was
also that Of the United States Steel sinking
fund bonds.
A matter that is widely discussed in
financial circles at the moment is the policy
adopted by the Steel Corporation in de-
Clining to reduce prices Of manufactured
products. There are those who admit that
this policy should be pursued while busi-
ness conditions remain such as To make
IL improbable that cuts in prices would
bring in new purchasing orders, but who
contend on the other hand that when these
conditions change for the better the cor
poration should at that time endeayor to
stimulate consumption by lowering its list
quotations Those who argue IN this way
forget the fundament tai idea which pre-
vailed in the formation OF the United States
Steel Corporation, and whose value and
wisdom have been justified by time, The
substantial basis Of the project was TO
abate the violent fluctuations in the mar
kets for iron and steel products, which long
had been one Of the grea test banes in the
business life OF the country, and to 80 ar
range affairs that these prices could he
kept on an even keel year in and year out.
This meant, of course, that the prices for
such leading articles OF trade use AZ steel
rails, billets aud the like should he such as
would be considered fair by every one and
should, indeed be only what could be
described as moderate, go nsiderng the
varying history of the steel business. So
the scheme was put into operation, and the
success that has attended it and It's bene-
fetal influence on the business affairs Of
the whole country are matters Of public
record. Now IT is obvious that If the prin-
ciple thus laid down were to he disregarded
in the manner suggested il would yitiate
the entire idea which has animated the
Steel Corporation from the beginning
II prices were tO be lowered al this time
or in the next few months there IL no reason
Why they should not be advanced when
business begins tO improve, as II il bound
10 do in the not far distant future; and thus
the steel trade once more will he in a whirl
Of rising and falling values. Adverse
% critics Of the position taken 10y the Steel
Corporation do not fully bear in mind,
perhaps, that the management Of the cor
poration in the last year deliberately put
aside the chance Of realizing at least $50
600 900 additional profit by exaUting higher
prices for their products, which could
easily have been secured Ia it fair 10 the
corporation now and will it not injure the
country's business in the long run If re-
duction in prices il granted now;