New-York tribune., 1909-11-29
FINANCIAL MARKET
COURTS and WALL ST.
Stock Prices Recorer from
STANDARD Oil Decision.

ace 10 business prosperity, and business
cperations conducted upon the theory
that the door OF opportunity must be
open 10 only a few favored interests are
q direct blow al the foundations OF our
I,olitical institutions. Wall Street was
seriously upset over the decision against
the Northern Securities Company. bat II
soon recovered from the shock 10 the ac-
Commandment Of rising securities prices.
and history will repeat itself in the case
Of the STANDARD Oil decision. despite the
foolish fears OF certain narrow minded
observers that an intolerable situation
will be brought about in the business
world by the action Of the courts in their
work Of eliminating the bad features OF
Industrial combinations. The govern
taent is not waging a campaign of con-
fscation II is merely checking the ten
dency toward monopoly. and in doing
this il is working for the welfare OF pro-
ducer and consumer alike Wall Street
has nothing TO fear from court decisions
that are based on sound law and sound
economic principles.
The stock market opened the week
under heavy selling pressure of specula-
tion for lower prices as consequence OF
the Standard oil decision. but the course
OF quotations failed to encourage invest
ment liquidation OF TO discourage the
business community. The industries Of
the country have not been adversely af-
iected 10y the little unsettlement I'm Wall
Street. and now the Street itself is be-
ginning TO forget the cause OF its fright.
a reflection Of which is presented i'm re-
sumption OF moderate operations on the
hull side OF the market and in a fuller
realization by spectators and investors
of the strength Of fundamental condi-
tions and the brilliant prospects for a
long period OF expansion in all lines of
business in all parts Of the nation
Money market conditions and the APP
proach Of the time for the meeting Of
Congress are factors that doubtless will
serve TO restrain a heavy buying move
ment on the Stock Exchange. but there
Il nothing in the situation that warrants
uneaslness over the position of the mar
ket. and nothing outside OF passing spec
ulative considerations that warrants
more than temporary excursions on the
short side Of trading
According TO the opinion of the hest
informed interests Wall Street will wit
ness hositating stock market for sew
eraI weeks to come. with few declines.
barring the possibility of seriously ad-
verse developments or Withdrawal
from the market Of the wealthy holders
who for many months have supplied the
chief support to rising prices 1t is con-
tended N some quarters, however. that
natural tendencies favor a readiustment
oi the general market to a lower level.
though the people who hold this view are
not hacking their conviction By trans
actions for decline. while the idea fails
I" bring out stock from substantial own
'rs. who apparently are not willing TO
believe that they will be able to reac-
cumulate at cheaper figures i'm the near
future Conditions affecting the actual
worth of American investment securi-
ties are stronger now than they have
. been at any time I'm the past. but il is
ccnCeiNa5le that the increasing output
/ OF new securities issued for the purpose
! OF providing funds for meeting maturing
/ obligations and for betterments and i'm
! provements may serve to weaken prices
J to a small extent. irrespective of the
underlying strength Of the general sit
uation. Railroad earnings continue to
gain. and bank clearings supply further
evidence OF the growth of industrial ac-
uNlty. For the first two weeks in No
Nember railroad earnings sho- ID an in
crease Of II per cent over the same time
last year and bank clearings for the
week just closed "A gain Of 9 per cent as
compared with 1908 and Z per cent over
the corresponding week in the active
/ year Of 1895.
] The United States Steel stocks are he
! ing absorbed in fair amounts by invest
/ ors and in spite of the relatively high
/ Price Of the common the utmost conf
dence prevails that the issue eventually
/ will move 20 a better level owing 10 the
I tremendous demand for steel products
ana the belief that the directors of the
I big steel corporation will advance the
/ dividend 10 > per cent level in 1910
which would justify par for the secu-
/ rty. specifications and orders for fin
/ ished steel products in the current
month have been heavier than i'm the
active month Of October. and the mills
are now reluctant To accept business e,-
tending far into the future. The rail-
! roads are d aSy buyers Of rails struct-
ural materials and rolling stock. their
purchases being based upon the convinc-
+ Alz 4"o4~a.io.-s that Iho volume OF tr,,,tic
VIII be enormous throughout the next
twelve months, while from all centres a
most active demand for steel is renorted
IN connection with new building ora-a-
uons. Basic facts point TO stability in
cur business affairs. and stability in
business means Industrial prosueritv
which IN turn m' s. added actual v,l,a
TO investment securities.
frmness shown in local money rates
doubtless viii mark the course of m.
market well into the new year Mil.
there is little prospect of really eas,.
quotations for accommodation a..
months To come. owing To business Moods
ana applications FOR new capital from
the railroads and Industrial corporations
The supply Of commercial paper is larger
uan II has been at any time since trc
/ days prior To- the panic OF 1907. and dr.