The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1909-02-26
NEW YORK FINANCES
AS TOLD BY CLEWS
TARIFF REVISION ONE OF IN.
PEDING ELEMENTS IN THE
BUSINESS QUIETUDE

NEW YORK. Feb 20, Money is
easy everywhere, Not only in New
York, but in Paris, Frankfort and
Berlin the tendency OF interest rates
is still downward. This, Of course. is
mainly due to the depression prevail
ing in commerce and industry IN all
parts Of the world, AS a result capi.
tai is accumulating and diligently
seeking every form of safe and prob
table employment The effect OF this
situation upon the security markets
is marked, In the first place, il causes
a good demand for high grade invest
ments from conservative investors
and institutions, who have more re-
gard for preservation OF principal than
either dividends or speculative pro-
FITS Al the same time another class
OF buyers, viz, the general public,
continues to abstain from the market,
partly because they recognize that the
prices OF average stocks are much too
high in view Of existing conditions,
The insiders and big market leaders
have successfully resisted any impor-
tant decline thus far, owing to the
abundance Of cheap money There
are reasons for believing, however
that those whose policy /, was tr
support the market and resist natural
tendencies have accumulated ali, il
not omre than. the stocks they de.
;re. and that in the absence OF buy
crs their position is anything but
satisfactory one, Notwithstanding their
unquestioned financial strength
For some months past all the re-
sources aud skill Of the great leaders
have been concentrated upon the pur-
pose Of resisting natural tendencies
onsidering the great shrinkage in rail
road traffic, and the unquestioned
dullness in business, prices ought 70
have undergone considerable reae-
ton. Such has been the course in all
previous panics. and it is difficult to
appreciate why the results should be
any different now. There is no doubt
Il the recovery following the rebound
after the panic was too violent, hav-
| ing been unduly stimulated by the in
aationary effect OF cheap money and
the powerful cooperation Of great f.
nanciers. The resistance TO natural
reaction was not confined to the Sc
curity market; it extended equally in
to all of the great industries under
the control Of big combinations. 1t
is to be doubted, therefore, ii liQuida'
ton has been as complete as it
should have been, in order to bring
business to a really sound basis,
Buyers, not only of stocks, but Of
commodities, lack confidence. There
is universal feeling that as prices
are too high, a recession must fol-
low; and all buyers as a matter Of
self-interest are preserving hand
to-mouth policy and obstinately re-
fusing every anticipation of future
requirements.
It is this lacl II confidence among
buyers that hes rch to do with the
present inertia OF business. Nearly all
lines of business to-day are exceed
ingly quiet, the only signs OF healthy
activity being where, as, for instance,
in cotton goods, thorough readjust-
ment has already taken place. Iron
and steel prices are now being reduc'
ed to still lower levels. But needless
to say, though this has attracted many
orders, buyers are still unsettled be-
cause action has been deferred, and
the market has not yet been suffl-
ciently tested fby compensation be-
tween buyers and sellers Moreover,
the dullness in trade is being further
aggravated by tariff agitation. While
tariff talk does not lessen the amount
Of food consumed, clothes worn or
shelter required, still the uncertainty
has restraining effect upon new
ventures and strengthens the deter
mination Of buyers to preserve a
hand.to-mouth policy. No doubt
when the tariff question is settled
business will instantly take a vigor-
GUS start in consequence of the ac-
cumulation OF deferred orders; so
that the total volume Of business over
an extended period viii have suffered
little or nothing. During the interval,
however, much hesitation will prevail
and must be endured until the tariff
question is settled. Unfortunately
the prospects are for prolonged and
bitter agitation, present indications
being for a more or less excited ses-
sion Of Congress, lasting well into
midsummer. Already an unusual
length of time has been given to
hearings on the tariff by the Ways