The Washington herald., 1909-01-11

2 -' -D-4-f 1e-t- u 4 lere N1S present
IN the financial community last week a
greater degree Of realization than there
hsd been formerly OF the important
truth 1hat the very duIIness Ct business
N the country Just now which forms
/ The burden Of complaint IN 80 many
directions IS In one sense A blessing IN
disguise. Il IS accomplishing the great
purpose Of improving the market for
1 the couHtTy's investment securities AMI
thus OF allowing The railroads and other
/ corporations both 10 refund their exist
Ing shOrt-time obligations and 70 secure
new supplies Of money for necessary ex-
/ penditures later OF.
/ II Is obvious az glance that Il 2 dif-
ferent state OF affairs prevailed, that
is 10 say. II business were active instead
/ Of duh, the demand for money for bust
ness needs would so increase call and
l time money rates as 10 render difficult.
II not impossible. the fOtation Of rail-
way nd Industrial bond issues Of the
kind srafed- The success that has at
! tend undertakings OF this sort has
I been the real feature OF the last fortnight
/ OF the financial market
| The ST Louis and San Francisco Rail
rosA Company has been put on its feet
/ b. an issue Of SS0.0o0.000 refundinz bonds.
/ an event also relieving the Rock Island
I company from what would otherwise
I have been a heavy responsibility Siu1i-
T larry. the Missouri Kansas and Texa1.
/ the Chicago and Alton. the Denver and
I Rio Grsnde, not 70 mention g large
number of other companies, Industrial
/ as well as railway. have recently found
[ highly favorable answers as a result OF
+ their appeals 10 the money market: and
/ il needs No argument 10 show that such
/ developments are OF the most sUbStan-
/ TALLY favorable character that could be
/ imagined
Activity Somewhat Abated.
Philosophical reflections OF this sort
were not q Httle help 10 the speculative
stock mar CT Iast week. for it was gen
orally conceded that the activity Of bust
ness in tbs country had abated more OF
/ less 10 the preceding four or Ave weeks,
and haf the stock market IN this period
has b. a rather unsatisfactory affair.
s ar 5 the stock market itself Is con-
cen d while il has shown sustained
strength since the middle OF the month
oi November and has involved few specu-
istors for the rise IN losses. yet the ad-
vances have been mostly IN stocks OF
minor grade in which the majority OF
market operators were not interested. nor
were generally allowed 70 interest theua
selves except along conservative lines by
the greater number Of commission houses;
although on the other hand It IS 10 Be re-
membered that the rise n many OF these
stocks has, as was attested IN the case
Of the Colorado and Southern Company.
bean based upon much more substantial
foundations than Is populaTly supposed.
Regarding business conditions proper.
the increased surplus Of idle cars is enly
one instance. though II has been the one
that has received Jhe greatest amount OF
attention, OF 9 moderate slackening OF
trade; and II appears to be uncertain q
the moment whether this slower move
ment has been due chiefly TO causes con
nected with the usual holiday dUuness OF
10 a restriction Of commitments OF al
kinds owing 70 doubts concerning the e.
feet Of tariff revision.
In the financial district more stress Is
laid upon the latter cause than upon the
former and there are people in this quar-
ter who maintain that there viii be no
really lively forward movement IN bust
ness until influences Of this sort are az
an end This does not mean. OF course.
that business viii have 70 wait until the
new tariff Law Is actually enacted. be-
cause al q time considerably in advance
OF the date when the statute viii be
completed opinion IN the business and
financial circles viii become crystaUized
as to the approximate extent OF such
changes IN the tariff as are likely q
Z F- L
that for some tine yet the matter must
work to produce business hesitation. and
the comforting thought again rscurs that
the longer a revival Of business on a
great scale IS pOstponed-always sssuu-
Ing that the postPonement Is not too long
the more time viii be given 10 the cor
pcTetio1s Of the country 10 get their
financial affairs n satisfactory shape
Expect Revival of Business
II follows logically from this that when
the time comes for the removal OF the
last Of the various external and in a Ger
tain degree artificial restraints upon bust
ness that have been imposed in recent
rnonths-of which the Presidential eIec,
ton was, Of course. the most notable-th,
revival OF business viii occur IN more or
less sensational manner Evidence con-
stocks Of goods everywhere in consumers
hands, Of the hand 70 mouth buying that
stu goes on even Il II IS z little more
liberal and hopeful than It was six
months ago. and Of the general desire on.
the part OF people Of the country n every
walk OF life 20 make economies All this
means that the country as a whole is
once more. accommodating riches against a
day Of generous spending later on
The striking event Of the week Of in
terest TO Wall street was the unexpected
decision OF the Supreme Court against
the local gas lighting companies il the
long drawn out litigation which the com
palies have conducted with the State and
municipal authorities. The subject has
been discussed so thoroughly as 70 make
elaboration Of il unnecessary.
There is no doubt that great prOFreSz
is making toward establishing the uroper
lines upon which government bv com
mission should take place in these
United States Extreme instances Of
rspacity and asininity in the MANAGE
ment Of local corporations have led 10
the enactment Of laws for the nanzSe-
ment Of these corporations. which have.
in their turn. been equally extreme and
ill-judged. and have often been admin
istered by ignorant men
In banking circles last week vhils
stress was laid upon the ease Of money
as being the most important and vaIu-
able feature OF the general situation,
which was likely 10 hold for an indef-
nite time 10 come. questions were raised
in quarters often given. il may be. 10
OverconSeTvatiSm. regarding the inhu-
ence upon conditions here OF a possible
advance in the Bank OF Englands Gis-
count rate. ccntOintly with the ingathsr-
ing BY the local trust companies before
the first Of next month OF S41e0o.o0 in
order 70 bring Up their reserves 10 the
full legal quantity.