The Washington times., 1909-02-28
FUTURE OF STOCKS
RATHER PROMISING
Severe Liquidation of Past
Week Has Materially
Cleared Atmosphere.
RAILROAD EARNINGS
SHOW GOOD GAINS
Wall Street Has Hopes in Taft
and Early Mild Tariff
Revision.


OF the week should have a good effect
on the future OF the market, just as
severe thunderstorm clears the atmos-
phere. Many margined accounts have
sone by the boards to the relief Of the
situation; the loans in the banks have
been sensibly reduced. the long upward
movement was checked and a short
interest established. where there had
been none for months.
That the decline did not go further
was evidently due to the support which
was judiciously distributed here and
there throughout the list, and especial
~ in the metal shares. where the weak
ness was especially noticeable
Worst Is Over.
While it is probable that the market
will be nervous for some little time TO
come, while there may be recessfons
and weak spells. the general opinion is
that the worst is over. General bust
ness waits on tariff revision The WAYS
and Means Committee will have the re-
vised schedules ready 10 put before the
House Immediately on the reconvening
of Congress March 10
The prediction is here made that the
tariff cutting viii not be severe in any
line, that the cut in steel will be above
the limitation at which the steel manu-
facturers will be fostered, and that
when once the bill becomes a law. bust
ness will improve with rush that will
employ the industrial productivity of
the United States to the limit.
The Ways and Means Committee find
that the demand for revision is not as
urgent as il was: that their districts
and the districts of other Congressmen
are anxious for local industries 10 be
cared for, while back of it all the rev.
enues Of the country demand radical
nourishment.
Before the passage of the tariff bill
the outlook for crops will be a factor
81 Importance IN considering the situa-
tlon- The chances are encoura ging to
the producer and the high prices for
NE products Of the farm will increase
me purchasing power OF the producers
ana help business generally.
Textile Market Active.
The policy Of buying from hand to
mouth has prevailed in all the mar
kets with the possible exception OF drv
goods, indeed the textile market has
been the one bright spot in the situa-
ton, and if il may be taken as indica-
tive Of the future, then the future Is
bright
me steel situation is not as salts
factory as it should be. and vet the
declaration Of an open" market. =
free-for-alI is the surest way 10 bring
about an end TO price-cuttine. The big
corporation is in a better position TO go
the pace than its rivals and the hustle
I Tor business, If il is effective. while il
may not pile up profits, will at least
pave the way for another understand
inG that Will probably be more lasting.
il IS evident, ever, at this time. that
the independents. the leaders in the
price-cuttinG, while the corporation was
vet maintaining values, have been the
1rst 10 cry for peace and stability. The
leace ana stability j. not Yet-the warn
lnE must be made more expensive. in
order that the disease Will not break
out again
Liquidate Via London.
With the opening or the week. the
fear lf drastic price-cutting ia steel
and the holiday started the liquidation
os disguised bull accounts. through or
via London, the open market on that
day. This was followed by a day OF
intense liquidation in this market. and
thereafter there was some scarcity OF
stocks The closing was OF character
70 give assurance 70 the future.
There is constant threat OF investi-
Eauon and perhaps attempts Of legis.
lation IN Congress, but with tho mi
tiative in the hands OF the minority
the efforts are likely 10 prove futile.
Hope in Taft.
on Thursday OF this week a taance
~ Administration will occur and Mr.
Taft viii become President of the
United States His election pleased
financial interests. his inauguration Is
expected TO be followed by a message
70 Congress that will 5e the signal for
p forward movement in commerce and
manufacturing. While ne is in posses
sion 81 "A heritage Of policies those
who are supposed 70 be closest TO the fu-
ture Executive seem 10 believe that Inf,
Administration zyill be less aggressive
than his predecessor and that his en-.
orgies will be directed toward the I'D.
building Of the commercial and manu-
featuring prosperity Of the nation. HI,
advent 20 the highest office IS expect
ed 10 be celebrated with bull move
ment on Wall Street and In anticipa
ton OF this. higher prices are likely al
most from the opening tomorrow.
II must not be forgotten that prices
are still not very far from the hiEhes
points: that the declines have not beer
radical WQCn compared WIN the DIE
advances. and moderate improvement
should be satisfactory IN the matter o.
taking profits
Investments Safe.
Investors with their stocks paid 70
should not be nervous on the situation
High grade securities are not going Il
smash; they are in good demand toda,
and, with money still easy. they viii
be held for income.
An early passage Of the taTin meas
ure will mean an early resumption o
business. A long and acrimonious de
bate IS expected on many items In IN,
schedule, but the majority is in com
1nand, and Il Is admitted that the ma
dority has a weapon in limiting debate
.Closure methods, etc
Foreign Situation Better.
The foreign situation is MATERIAL,
better. Consols have recovered much o
their loss during the previous week
Money is easy abroad and at home.
The first week Of February shows 81
excellent increase in gross earnings
twenty-five roads showing nearly ?
per cent increase
While sensational advances or eVel
material gains are perhaps improbable
vet the chances rather favor bette
prices during the current week,