Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-01-17
Discounting the Future.

s~>eve~eS9
The test is as to whether the market
from dead weight will break through the
none too thick ice and go splashing to
the depths or hold stubbornly around
the present range until the good time ar
rives for another upward movement. This
may be soon or it may be delayed until
after the tariff revision is completed.
Wall street (by which is meant the stock
markeD has way of discounting the
future with astonishing accuracy. Its
reasoning Is not always clear or convinc-
times out of five. 1t is more than likely
to get the correct line on Congress action
long before the vote Is taken on the new
tariff bill. The business communities may
be as alert as Wall street in this tariff
matter.
Washington is in closest touch with
Wall street; not in an improper way, as
have put it many times In these letters.
but because one is the political department
and the other the financial department of
a great business institution-the United
States Of America. Between them there
can be no mystery and few secrets
Neither has exclusive information. Each
has trained intelligence which quickens
apprehension Of the bearing and signif1-
canoe of current events and developments
the one politically and the other in a
money way. Hence. 1t would not be sur
prising If the New York stock market
did not jump to tariff conclusion before
|. Congress realizes it has made I'D its
mind.
And bear in mind the vital fact that re-
vision of the tariff is In the hands of q re-
publican Congress and administration
committed to readjustment along protec-
ton lines. Judge E. H. Gary, spokesman
for the steel trust, when asked If he was
not disturbed over the revision prospect
replied, with an expression of angelic
faith: I'VE are in the hands of our
VT x1~ xl:<
in words the sense of restful peace reflect
ed In the voice and manner of the speaker
as he uttered the phrase. Surely tariff
revision is in the hands Of its friends
and Wall street has the "hunch' that no
business interest Will be hurt, if injury
can be avoided.
Protected Interests Planning.
Word is received that the protected in
terests have planned a demonstration
against Congress which they calculate
will be irresistible and which will effect
ually prevent drastic cutting. Every
known agency is to be brought into &C.
ton to impress the lawmakers with the
necessity of caution and tenderness in
their treatment of the delicate and dan
gerous question: question loaded with
dynamite destructive to the industrial and
business life of each and every district.
Against this projected concentration of
pIotcCiSu lilcIOStS Will Uo dTTdy6Q the
abstract proposition that $1,000 600 con-
sumers are to be benefited by tariff re-
duction. These SO.OOO,OOO will have mea-
ger lobby representation and no organized
army to back up it's demands. Hence the
Wall street attitude of stubborn refusal to
get "het up over the revision prospects
despite persistent and earnest efforts to
work up Scares.
Specifically with regard to the iron
and steel schedules it may be stated with
a degree of authority that the expecta-
ton in the trade and among traders and
bankers is that it will be subjected to an
average cut of about 25 per cent. This
much of a reduction the manufacturers
are prepared to accept and stand for with
out serious whimper.
Erie has held place in the center of
back from the brink of bankruptcy last
spring by Mr.. Hartman, who came to
the rescue to save the general situation.
The Morgan party, which was In control
of Erie at the time. was apparently recon-
ciled to the impending disaster. but Mr..
Harriman's larger interests were jeopar-
died. and he jumped into the breach re-
CARELESS Of the frowns of Mr.. Morgan and
his associates. About $13.OO0,O 900 is said
to have been advanced by Mr.. Hartman
of further and supplemental salvation
part of which will be used to repay the
coupons taken up by him and the balance
is advertised to go into planned better
ments, terminals and other construction
iron h,111 ON,