The Washington herald., 1909-02-01

New York. Jan s1.-Although financial
events last week were not Of great num-
Der, they were still somewhat more
numerous and important than they have
been in any week for q considerable
time, and they served 70 lift the stock
market out OK that rut Of dullness IN
which It has Travelled in the last two
months
The news comprised chiefly the long
talked OF entrance Of Mr. Hartman into
tho New York Central board. the an
nouncement Of the purchase Of the con-
troll Of the Chesapeake and Ohio by Mr-
Hawley. the conclusion In Europe OF the
Russian loan. and the publicstea Of a
number OF routine monthly statements OF
railway earnings.
The Russian loan Is evidently as sue
cess, although It is manifest that It has
been taken rather unwillingly, and most
~ by the French people. who are already
SO committed 10 Russian investments
that they feel bound 70 protect them
II Is clear. however. that further Rus
sian borrowing will be conducted with
more or less difficulty. 81 least until the
political situation IN Russia improves. IN
the meantime, now that this last under
taking has passed OF satisfactorily. there
is ample reason for the hope that the
Bank Of England viii be enabled TO build
Up its depleted sold reserve 70 normal
figures. thus Strengthening what. il not
exactly weak spot in the international
financial situation. was still such as 70
cause some misgiying
stop Drain 70 Paris
It became obvious q fortnight ago that
the directors OF the Bank OF EagIand
had decided that they had lost Ell the
gold TO Paris they intended 70, and that
1 II necessary they would raise the banks
rate OF discount indefinitely for the pur-
pose OF putting an end to the drain Al
this necessity has been seemingly
Rverted.
The monthly returns q our leading
railways still continue 10 exhibit as their
principal feature drastic compression OF
operating expenses which affords the best
possible evidence OF the economies now
being practiced in SO many quarters OF
the business world, economies neverthe-
less which wiil bear fruit later on
spectators are undoubtedly hating and
unsettled in their minds. Many OF the
larger professional operators would prob
ably like TO attack the market sales foT
the decline. and presumably have already
done so 70 some extent
They know that for long tine back
the movement o. prices has been Up
ward. that the average range Of market
quotations Is still not much below the
highest point touched, and that a wave
OF pessimism Is sweeping over the specu-
/ lstive community, caused By disappoint-
nsent ever a species q flattenins out Of
business that has taken place since cleo
ton day
Public BuyinE Heavy.
On the other hand, they are deferred
from operations OF this sort by the al
most unboUEded ease OF the money mar
ket, which makes Il possible for the
great banking snd capitalist interests to
extend support TO the security market
without any Inconvenience whatever, By
knowledge OF the large absorption OF
stocks on the part OF the general public
that has taken place in the last year
and half al low market valuations. by
the tremendous strength OF the market
for investment securities proper, and BY
the great probability that decline in the
stock market would again lead TO large
public buying IN that quarter.
Standing IN the background and might
ily foreshadowing al these comparative
ly DuRy considerations is the abiding
confidence felt by all classes OF the fnan-
cial community. by speculative bears
no less than by other people, that the
present period Of waiting and marking
time in the business world. whose end
no one can definitely determine, but
which Is not likely TO be greatly pro-
longed, Is only laying q substantial
foundation for an upward march OF bust
ness and industry in the country. more
sustained, powerful, and majestic than
any ever seen before.