The Washington herald., 1910-12-26

:. New York. Dec. "a keen observer
OF the stock market said last week that
for a long time past professional opera
tons had constituted almost all the stock
= exchange business there was outside of
the bond market. and that it had come
10 pass at last that professional opera
tors had ceased trying to make money
out Of each other and we're doing moth
ing, awaiting some signs Of interest in
the market by either the general public
or by the large banking interests.
The diagnosis of the situation thus
made was fairly accurate, and it might
have been added that an attitude Of wait
ing seems now to be the policy adopted
by people generally not only as regards
purchases of stocks as distinguished from
bonds, but in the matter OF entering upon
or extending business enterprises 1t is
admitted that a period of business reac-
ton is on in the country. The one cues
ton is how long is the reaction likely TO
run; and people at large are obviously
inclined at the moment TO the opinion
that the reactionary period viii not be
greatly prolonged.
They may not feel inclined to go in
and buy railway and industrial shares in
the security market. but they are disin-
clined to sell the dividend paying stocks
that they own until there is more evidence
before them than has yet been produced
that these dividends are in danger OF re-
ducdon-
Security Market Dull.
AS far as the security market itself
IS concerned, business in stocks last
week was purely nominal and was at
tended by only the most trihing net fiuc-
tuations in values For hve consecutive
, business days previous 10 last Tuesday
prices advanced in an Insignificant way.
Each day Of last week. after the time
named, they declined at about the same
rate. The small amount of business
done for many weeks past is, of course.
making the stock exchange commission
houses feel blue, and has made a com
parauvely sober Christmas of il for all
the people in Wall street whose profits
are directly connected with the activity
Of the stock market
For obvious reasons, these people
would rather see an active, declining
market than a dull one although the
preference among them is naturally for
a period as nearly endless as can be OF
rising prices. 1t is to be remembered
therefore that much OF the current pes
simism that is found proceeding from
Wall street sources is due only 20 tho
fact that the stock market has become
torpid, and not TO any particular losses
of money through falling prices that
have been incurred II is human nature
for everybody to view the business situa-
ticn through his own spectacles. and the
commission firms in Wall street form no
exception 10 the rule.
The iron and steel trade occupies the
most prominent place IN the public eve
Of all the industries of the country and
two great facts about il must again be
noted. one OF the chief reasons for
dullness in the trade a. the moment is
due 10 the almost entire suppression Of
railway orders. owing 20 the contro-
. versy over the matter of an increase in
freight rates and the other that even
with this railway business standing at
the minimum the total volume OF bust
ness in iron and steel is as great as it
was decade ago.
Steel Trade Blooms.
The development Of the need for so
many small forms of iron and steel as
compared with past times, when the
business was practically wholly restrict
ed TO the large iron and steel shapes"
such as steel rails and billets and the
like, has given to the trade a substan-
tial character that it did not formerly
possess From the point or view of
prospective purchasers OF the shares of
the iron and steel producing companies
II Is also worth adVerting 10 the fact
that experience has proved a thousand
times or more that the time to acquire
THESE shares advantageously is when the
iron and steel business is depressed.
The Spectator in Wall street wants TO
buy or sell for an immediate turn. He
has no notion, usually, Of buying a little
stock al one time with TIE idea Of buy
ing more il the security market declines
so as TO make a low average for the total
or stocks owned when the market finally
touches bottom; and indeed such a pro |
cess has its dangers when it Is done as a /
matter OF mere speculation upon bro /
kers margin.
Hard to Practice.
The course described belongs 10 the
class Of policies which is sometimes
spoken OF as being correct in theory but
hard 10 pursue in practice. It would be I
more proper to speak of il as one OF /
those policies which everybody realizes is
correct in theory. but which few people /
have the courage TO adopt.
Nine out OF ten men would rather buv /
stocks or anything else on a rising rather /
than on falling market; but the tenth
man who does do it is the man who |
makes money, always assuming that he /
makes his initial purchase at a time when !
IA period of depression has already run /
Tor quite while and there are signs OF I
daylight ahead.
There are signs now Of better times in !
that national ecOnomiZing has begun with 1
the immediate result Of Improvement in |
the country's foreign trade and in other I
similar lines. a continually lowering mon |
ey market the knowledge that the rail- !
way rate decision and that Of the Su- !
preme Court in the antitrust cases will 4
be out OF the way before many months 4
are past, and the moral certainty felt /
by all men who have studied the question 1
intelllgenty that this action in the anti |
trust cases viii be OF constructive rather 4
than Of destructive character
Phineas FogG OutdOne.