The Washington herald., 1909-04-05
ADVANCE In MARKET
Decided Strength Shown in
Many Leading Shares.
PEss1MIsrS AGAIN DECEIVED
Strong New York Bank n Steady
and Enormous Buyer on Recent
DecIfne-wnr Scare In Balkans
over and Europe Takes More
Cheerful view of the Situation.

New York. April 4-Criticisms frequent
" heard in Wall street az the end Of
last week were that the rise in stocks
during the last week had been conducted
altogether TOO rapidly. Attention should
always be paid to expressions Of this
sort when proceeding from intelligent
and experienced observers of the market
and financial conditions, especially when
their own personal attitude to the mar
ket is one OF aloofness.
The truth is, however. that in the pres
ent instance by far the greater number
OF those who have been decrying the ad-
vance in the market as psrtaking Of a
too lively character are either spectators
for the fall. who have been sorely pun
ished as the result Of the upturn in prices.
or early spectators for the rise, who
parted with their stocks too soon to
receive the largest profit thereon. 1t Is
an old adage in the financial district that
there are no bears" so rabid as sold out
bulls" and instances OF the accuracy OF
this saying are often amusing
It is also apparent that one specific
reason for the decided strength OF the
stock market recently has been the con-
slant buying back Of stocks by specula-
tors who fought the advance with sales
and were compelled time and time again
TO acknowledge defeat. and to retreat
with loss.
Pessimists Are Deceived.
A fortnight ago three-quarters Of the
active professional trading market opera
tors in Wall street were extremely pes
simistic in their views. The result has
proved that they were wrong. just as
has been often proved before. and IL is
also rather plain that the rise in prices
did not, until toward the close Of last
week, enlist the support as a general
rule Of banking interests, and then only
partially.
To this observation one notable eXcep-
ton is 10 be made. 1t is believed that
single banking concern. but one in the
very first rank Of such establishments.
was an enormous and steady buyer Of
stocks on the violent decline in values
that went on after the announcement OF
the reduction in the price Of iron and
steel products by the United States Steel
Corporation, and that this same house
when the positive strength OF the secur-
ity market several days ago began 20
exhibit itself.
The sagacity displayed in this respect
is worth mentioning. but Il was uneom-
mon. II is well understood that the So
called Standard Oil party has been re-
Gently. although not against" the stock
market. yet not definitely in favor OF II.
and not a few very rich men who are
usually accounted as leaders in such af-
fairs have found themselves with their
idle money still IN their pockets OBJ
serving quotations FOR stocks much high
or than those al which they themselves
disposed OF their own holdings some time
since.
Now. the fact is, OF course, that a
situation OF extraordinary financial
strength has been slowly maturing for a
considerable period. Primarily, what has
done as much as any one thing 10 de-
velop it has been the effect upon the
minds OF people having property and f.
nancial interests OF the revelation made
OF the personal character and disposition
OF Mr.. Taft since he entered the Presi-
Dental Office. Perhaps it Is not so much
what Mr.. Taft is as what he Is not that
has caused the pronounced feeling Of sat
isfactiou and almost Of enthusiasm in
this regard.
War Cloud Gone.
Latterly the Balkan war cloud has dis
appeared with a slump IN discount rates
all over the world, or, what is saying
the same thing. a renewal Of political,
financial. and industrial confidence every
where The difficulty in the anthracite
mining district here. II not formally at
e As-a Tr~
Railroad Company, which has been held
up 10 public gaze for a long time as al.
organization that was on the point of
receivership is attesting in its monthly
earnings its ability 10 earn its fixed
charges quite irrespective Of the decisions
Of the public service commission in fits
favor. which. in all probability. assures
the success OF tie new financial plan ar
ranged for the company.
The general crop outlook is highly IA
vorable. the spring weather OF the last
two weeks especially being Of almost
ideal character, not only from the point
OF view Of the farmers. but as regards
mercantile business conditions and per-
sonal comfort
The returning tide OF immigration that
has set IN on a vast scale indicates
plainly enough the existence of an in
stinctive popular feeling that business
prosperity is about to enlarge. a symptom
Of Ike nature being the great increase IN /
the Importation OF raw material by manu-
facturers, and the statistics OF business |
taken over the country show that, de-
spite a commonly held opinion to the
contrary, the business OF the land as e
whole Is really not notably below that OF
exceedingly prosperous years IN the past.
Definite proofs OF this are furnished as
vividly as anywhere in the reports OF
earnings by our railway companies In
what light other than that. OF optimism
can be regarded such statements Of rail-
way earnings during the month Of Febru- |
ary as were furnished throughout last
week? How can It be said that business |
as a whole is terribly depressed when the /
railways are doing so weu7
Railroads Making Money.
For some time back it has been neces-
sary TO qualify these favorable reports |
with explanations that the railways were |
making money by saving it rather than |
by actual increases in gross business;
that is TO say that while the railway net |
revenues made good exhibits. gross earn
ings were not relatively large. But re-
Gently the gross and miscellaneous busi- /
ness Of practically every road In the
country has picked UP greatly, and there
are not few railroads that are report- |
ing earnings almost as large as those in |
1907. when they were the greatest ever
known. What must we expect railway
reports 10 show when really boom times /
come again. and when-it may be in the /
latter portion Of the present yesr-bIg /
crops at high prices are once more NOV
ing to market and purchases Of Eastern 1