Evening star., 1909-07-11
STOCKS ARE DU0YAMT
Fifteen Months Rise Contin-
ueS Its Pace.
INFLUENCES ARE HELPFUL
Promise Of Crops the Most Important
Factor.
FRENCH AND STOCK LISTING
Consolidation Of Big Independent
Iron and Steel Companies to In
crease Millionaires' Earnings.
INFL LUENCES ARE HELPFUL
RENCH AND STOCK LISTING
Special Correspondence Of The Star.

crease Millionaires' Earnings.
Special Correspondence Of The Star.
NEW YORK. July 10. 1909.
The promise OF abundant crops, con-
tinued easy money and the steady prog
ress Of business and Industrial improve
ment are the visible reasons for the
buoyant stock situation. For fifteen
months the rise In stock prices has been
going steadily on. and now, with ante
panic quotations restored, the outlook
Is as strongly for further gain as 1t has
been at any stage of the remarkable
boom. It would seem that a reaction or
setback is long overdue, yet those who
have been playing the market for reac-
tions are sadder, wiser and poorer for
their experience. If there Is any pros
pect Of q variation In the program the
signs are not dfscernible to the naked
eye.
Railroad earnings, while not up to
high mark, are In every way satisfactory
and tho record continues to show splen-
did efficiency In operation and manage
ment. The sloppy methods that were too
place to closer and better work. There
is small probability Of q return to the
old wasteful ways. Money will be spent
on railroads-most likely on more gen
erous scale than ever before-but it will
go into the property with enlarged and
frightened knowledge of where 1t should
be put to do the most good. 1t will not
be burned up or thrown away.
In no direction is this more evident
than In the comprehensive plans for high
class betterment and new high-class
equipment. The dominant policy in rail
road management these days is deter
mination to buy only the best-to build
for permanency and endurance. For this
examples of E. H Hartman and the
late Mr.. Cassatt. The great systems
to which these two giants OF railroad
construction devoted their lives stand to-
day as the models for every other man
agement to work to. This is admitted by
practically everybody. even by those
whose Judgment was often against the
stupendous wide-open expansion for
which both men stood.
Crops Take First Rank.
BY common consent the crops will take
| rank from now on as the most impor-
tant factor in the stock market. Official
reports, government and state, confirm
the most glowing private information in
this respect. With the exception Of cot
ton the prospect cannot we'll be better
although there is still time for the kill
ers'' to stir up trouble before harvest
The crop skies are very clear at the mo-
ment and the stock markets reflect un-
shaken confidence In the future.
Already some people are worrying for
fear there will not be cars enough to go
around next fall. For wonder little is
heard on the time honored theme OF
bothersome drafts on eastern banks for
crop moving, and for once 1t looks as
though 1t might be true that the west
would have enough money at home to
without drawing largely on its reserves
tn the east. The west Is carrying un-
usually large balances in New York, and
II 1t should be needed 1t can be spared.
There is going to be plenty OF reasonably
and most likely well into 1910. Upon
that point there is substantial agree
ment among banking authorities. The
demands upon capital for the develop
ment Of natural resources and for legiti-
mate and inevitable business expansion
will tend to raise interest rates later on,
but the supply has not as yet been cut
into enough to be felt. Meantime there
is more money at the command of Wall
street than can possibly be used in the
stock market, a situation that promises
to continue at least through the sum-
mer.
Emphasized Tactical Mistake.
In pressing to a final knock down fin
ish the appeal from the decision refusing
admission of Steel Trust shares to the
Paris bourse, J. P. Morgan and his as
sociates have emphasized a tactical mis-
take that is likely to prejudice American
securities in France for long time to
come. The premature. or. as it now
nouncement of the listing of the stock
was followed by gooselike squawking in
jubilation over the discovery and un-
covering big pot of soft money
g.
thrifty French people are regarded by
the manufacturers and statesmen OF Sc
curities. Promoters, ditto.
Now 1t SO happens that for a hundred
ers Of securities of home and foreign
production. They look upon themselves
as experienced judges of the merits of
the quality of the merchandise they dab
"stung" and as often they haze bought
wisely They are graduates in the school
of experience and have certain pride
in their position and skill as buyers. To
have have It squalled Sa and and yyaWped into them
were. by a bunch of barbarian Yam
KEGS hurt their vanity and pride and
they baked. The play looked raw to
them. Persuasion they might stand for.
but violence never-not while awake and
In possession of sense and power of re-
sistance.
II there IL anything the French. es-
pecialiy the Partisan French. will not
subscribe to 1t Is coarse work. Hence II
Is that the legitimate introduction of
American securities into France has been
set back harshly and unnecessarily. And,
mind you, without regard to the merits
of the goods AS q matter of fact our
steel stocks are about the best things
offered the French investors in many
years. It was the raw way the PROPOSE
ton was put up to them and the refusal
or inability OF the American exploiters to
recognize the virtue Of compliance with
the established rules of the game as the
Partisan f1nanciers play it.
Some Of the Big Rich.
The consolidation of the big independ-
ent iron and steel companies into one
grand combine will turn loose another
batch of millionaires and mutimillion-
aires. None will rank with the Carne-
gies or tricks or Phippsss. but they will
press hard upon the records Of the others,
second only in Importance to those men
tioneda Price McKinnie of Cleveland will
probably lead the newest list OF ''big
rich" McKinnie is a little man. not
much above five feet high. Eileen years