East Oregonian : E.O. (Pendleton, OR) 1888-current, 1909-12-01
THE RECENT ST. LOUIS
DECISION AS VIEWED FROM
LITTLE OLD WALL STREET

the strong public opinion throughout
the country which is hostile to such
combinations, and recognizes that if L
he does not satisfy the public desire II
for action, Mr.. Roosevelt may be
summoned to that task three years |,
hence. AS to the attitude of congress
nothing can yet be ascertained owing
to the conflict of various issues The /
legislature, however. is likely to be
more unfriendly than otherwise to
corporate interests, and there is no !
doubt that amendment of the Sher- |
man law will be attended with diff !
Guilty this season. Another depress- |
ing influence has been the firmness
of money No particular stringency
is anticipated, but good interest rates
must be expected for some weeks to
come, which is not helpful to bullish
operations when the market is already
upon a high level. The business sit
uation, however, is not without its en-
couraging features Railroad traffic
is increasing, and practically all of
! the roads report satisfactory gross
! earnings Mills and factories in
nearly all parts of the country are
running full time. The steel and
building trades still maintain their
phenomenal activity. In a few quar-
ters there is a slight slackening of
the pace as the rush of the fall trade
is over but this is not general. In
the wholesale and retail trades there
| is a decided feeling of conservatism
among merchants who often hesitate
to enter future contracts because of
present high cost of production and
high prices of raw materials. There
is also an uneasy feeling regarding
the situation in cotton and copper re-
sulting from excessive manipulation.
and while the general situation is
hopeful. it is not without its serious
: perplexities. chief of which is the
generally high scale of prices.
British Budget Has Effect.
One other element of uncertainty
is the situation abroad arising out of
the British Budget proposal, which is
not only revolutionary in some of its
proposals, but also disturbing to for
eign financial and commercial inter-
= ests. It is possible that the British
government will be obliged to enter
the money market on a considerable
: scale to meet deficiencies which will
4 occur If the house of lords rejects the
n present bill This has caused a feel
ing of uneasiness, not only in Lon
n don. but at the European financial
7 centers. which has since been further
2 developed by the Standard Oh
= decision and rumors that the eff
: forts for an American copper
2, combination will have to be either
IL abandoned or else very materially
n modified. possibly on the lines OF
= community of interest. The pres9n
e outlook, therefore, is not entirely ar
e encouraging one considering the higf
IS level of security values and the indi
sc cations point to a hesitating marke
lie for some time to come. It's chief sup
Al port still comes from a few enormous
e " wealthy holders who forced the
IL market when money was cheap to al
/ abnormally high level. This group o
/ men have already lost two of theh
/ ablest leaders, and it remains to b
/ seen how long they will be able t
III successfully resist natural tendencie
which favor a lower and more stabi
range of values. The recent demoli
ton of merger and segregation plan
j. has deprived the speculative leader
re of two of their most popular mean
81 of manipulation. 1 therefore advis
e' caution IN buying the stocks that ar
u organized as holding companies es
as pecially those that have contemplate
a. segregating their assets under neN
p carrying schemes. The recent Stand
SO ard Oil decision knocks out all sue
ht devices; and corporations of thi
us kind which now exist and those here
e. after so organized are and will be Law
Is breakers and are likely to be mad
T. to dissolve.
al HENRY CLEWS
DIS