The Washington herald., 1909-03-22

New York. March H.-It may be con-
ccded that the strength OF the stock mar
ket last week was due in considerable
part 20 its oyersold condition.
/ There is always a tendency for spAcu-
lative commitments for the decline 70 in
crease in a dun market. such as has pre-
vailed FOR 80 many weeks. The time
finally comes when stock market in
which these tendencies have been allowed
20 follow their bent rallies by reason Of
| its own natural resiliency.
remark commonly heard in Wall
street last week was that there seemed
20 be present a great scarcity Of stocks;
and IL is patent, TO every clear-headed
observer that the quantity Of stocks re-
moved from the field Of speculative
trading through purchases BY investors
on the last 70 years IS larger than is
/ commonly understood.
The stubbornness with which stocks
| Ike Amaleamated Copper maintain a
relatively high price in the face OF such
| adverse conditions as have long prevailed
In the copper trade can only be explained
| upon the supposition that the floating
supply or these stocks in the financial
district has become limited. and there IS
/ the more reason 20 believe this. mas
much as II is generally understood that
/ The holdings OF these shares by large
financial interests are no longer eoncen-
trated.
steel IL widely Held.
The common shares OF the United States
steel Corporation are 70 De ranged IN a
class far above those % which reference
has been made. but even as regards these
shares the idea might seem plausible that
I their price should be made depressed than
/ IL is in view Of the decided unsettlement
ia the iron and steel world. But here
the explanation IS. and IL Is one that
applies 10 not few other stocks Of the
moment. that not only have they been
distributed 10 an enormous extent among
smaller investors. but that their intrinsic
value has been vastly enhanced 10y ex-
\ penditUres made upOn the improvement
OF the property represented by money
taken out of the earnings and uncharged
60 capital account.
The annual report. published last week
Of the United States Steel Corporation
for the fiscal year ended December q,
1909. exhibited. as everybody expected. the
results of last years trade depression. but
Il also showed that $5is 10000 lad been
laid out since the formation Of the Steel
Corporation in the work OF replacement
and new construction. This means that
/ a sum OF money equivalent 10 SIS for
every share Of United States Steel stock
! has been spent In charging the value OF
Z the companys property IL VIII strike
most people that whatever water there
might have been ar the start In the cap
italization Of the United States Steel Cor
Doration has pretty well disappeared.
Tariff Bin l. studied
OF positive financial developments last
week the message 10 Congress Of Presi-
dent Taft az the special session last Tues
day called 70 consider the new tariff laws
was an event Of the first Importance
From now on the tariff VIII no doubt
attention. but no one expects that any
lower cuts in tariff duties viii be imposed
than those originally suggested. and that
any changes that viii be made Will be IN
the direction of higher duties.
The changes. therefore. that viii occur
viii be helpful rather than hurtful 10 the
stock market; and IT, as IS now thought.
the entire bill can be got out OF the way
by June /, or even, as some very infu-
entail people IN Washington think. by
May =, Il Is not unreasonable 20 expect
that the stock market should begin to
discount after It's usual fashion the gen
eral disappearance Of the whole matter
as a disturbing factor in financial rela-
tons.
strike Of Miners Doubted.
A regards domestic affairs. apart from
those regarding the tariff. there were two
considerations that exercised considerable
influence in the stock market last week
the one an inclination OF financial opinion
20 the conclusion that the anthracite
miners in Pennsylvania would see that
it was hopeless for them 20 engage upon
a strike this spring with sny chance Of
success. and the other the steadily i'm
proving prospects for the country's crops.
No doubt the miners would like to Sc
cure, II they could. postponement OF
negotiations for an agreement with their
employers regarding wage schedules anE
hours OF labor until the fall OF the year.
when this could be undertaken with a
greater advantage to the employees. Rut
ot course. the employers viii not permit
this. and will insist that the miners shall
make an agreement if at all, on April 7. |
closing the mines on that date II an
agreement has not been reached.
word must be said. too, upon the sub |
ject OF the prosperity Of the railroads
For many months almost every railroad
in the country has reported each week
an increase In gross revenue that as is /
not commonly realized, brings these earn
ings IN many instances up to levels that /
approximate those OF the banner year
1907