The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1909-06-21
HENRY ClEWS' VIEWS

NEW YORK, June 21.-During the
last few days the market has shown
symptoms of top-heaviness, and much
of the support shown in previous
weeks was apparently withdrawn. 1t
is universally conceded that prices
have been very high, and have am
ply discounted all known favorable
conditions. On the one hand it was
admitted that with an abundant sup
ply of cheap money and stocks largely
concentrated into a few hands it was
possible to hold the market at high
level, and even force special stocks
to still higher figures. On the other
hand, however, it was recognized that
conditions are gradually changing.
There has already been a consider
able distribution of securities which
are slowly passing from strong into
weaker hands. There has also been
an abnormal expansion in loans large
| ly for stock market purposes; our
bank reserves financing any further
| large amounts of American finance
bills. Moreover many of our most
conservative local bankers are opposed
to any further encouragement of spec
ulation, and some of our largest inter-
national bankers are known to believe
that the market is too high, reflect
ing in this respect the well known
opinions of their foreign connections.
Nor is this ALL Indications are null
tiplying that, although money is still
very abundant, the period of abnorm-
ally cheap money is drawing to q
close. Business requirements are in
creasing. and when the crop demands
assert themselves better rates for
money may be anticipated. There is,
of course, no stringency in sight, for
lenders have found much difficulty
lately in satisfactorily employing their
funds, but when interest rates adj
vance many securities may not look
as cheap as they now do. There is no
doubt that the investment demand
for stocks is being restrained by pres
ent high prices. Good bonds are in
satisfactory request, and with the
approach Of the July disbursements
it is probable that the demands from
investors may be sufficient to prevent
any unusual reaction. 1t is known
also that our lending bankers still
have various important financial pro
jects on hand, which may compel
them to give the market support in
case of necessity.
General business continues fairly
satisfactory. Activity is somewhat
spotty, some lines of business being
relatively quiet, and the fact that
summer inertia is gradually approach
ing tends to moderate optimistic opin-
ions in trade circles, although the
volume of business is on a consid-
erably better scale than year ago.
The tariff situation now attracts leg
islation can be expected in this quar-
ter.
The efforts of the national govern
ment to increase its revenue, while
not an important market factor, ex-
cite more or less interest in finan-
cial circles. President Taft's pro
posal to tax net profits does not, of
course, meet with general approval.
Such an inquisitorial tax would com.
pei corporations to open their books
to government officials in a manner
that would often meet with serious
objection. Inquisitorial methods
would be necessary to prevent decep-
ton, thus presenting many of the OBJ
jections which belong to the income
tax The deficit for the current fiscal
year may approximate about $780,
900, 900. This is less than was expect
ed, and with a revival of business the
losses in revenue are likely to dimin-
ish. The true policy for the govern
ment would be to curtail expenses, and
not to further augment the burden of
taxation under which the country is
already complaining. If further rev
enue must be obtained, it could be
more easily, more efficiently and more
equitably accomplished by adoption
of the stamp duties. These could be
imposed upon business documents in
a manner to raise quite sufficient rev
enue at least expense and without fear
of evasion. Such a tax would not
touch the poorer classes and would
only be felt by the well-to-do.
The report of Governor Hughes
stock exchange committee is, upon the
whole, very commendable piece of
work. Though not agreeing with every