The Washington herald., 1910-12-19

course of the stock market itself last
week apd the views OF a majority SEEM
ingly of painstaking and conservative OBJ
servers of financial affairs coincided as
to the fact that security values for the
time being are in state approximating
that of equilibrium.
There was 10 great pressure either to
sell or buy on the stock exchange. A
few stocks moved somewhat abruptly for
special reasons. but in the main the mar
ket, although by no means torpid or even
inactive, was yet one that held within
narrow range and represented a bal
anee OF financial opinion. There is, OF
course. an element in Wall street that is
never satisfied unless security prices are
vibrating. with more or less violence,
and whenever the market for natural rea-
sons inciines to hold within narrow lin
its these individuals invariably hunt for
reasons to justify a forced activity either
toward higher or lower prices.
Now, il is sometimes the best thing
that could happen for a market and for
even speculative interests that prices of
stocks and OF bonds. too. should hold at
comparatively fixed figures.
May Clear Up Difficulties.
If Spectators. when such a natural
market disposition toward quiet evinces
Itself, would only leave the market alone
the greater part Of whatever real or
/ fancied difficulty that may exist in the
/ financial situation would probably cure
! Itself and leave the way open for a gen
uine market movement Of some sub
/ stance. Just now a great deal can be
said m favor Of values that could not
/ be said even few weeks ago. A period
or worldwide ease In money seems 10 be
/ AZ hand, which must in due course. and
! before very long, provoke general invest
ment buying and give to the industries
OF our own country. in particular mat
better bond market Of which they
/ have so long stood in need
| II Is true that this better bond market
when II comes Is not likely TO be such a
great and overwhelming affair as il has
been IN previous year. notably after the
great depression which ended with the
election of M Mckinley in 1886. Il de-
veloped at that time that a species Of
I investment famine existed in the coun-
Try. and as then practically the only form
/ that bond investment could assume was
k5uying Of railway mortgages. an I'M
ffhense rise in this class OF securities oc-
| CURED. Now the national bond market
| Is widely diversified The securities OF
/ innumerable gas. electric lighting. and
| irrigation companies, issues Of munich
/ palities, not - speak Of those OF a vast
variety OF general industrial and COM
mercial concerns, press in competition for
sale with the mortgages of railways, and
/ these latter issues, too. are now IN rela-
I lively few instances first liens.
1 Il is also TO be remembered that while
Z the general money situation is easier
il is not likely Ia be SO extraordinarily
easy as it has been on many other occa-
sions in the past Our last national bank
iretuFns. those made under the call OF
1 November 10 showed that hank loans
were non something more thaa $2o0e0090
greater than in November 1903. with
cash holdings but Sl2,o00,0oo more than
on the former date.
Bankers Reduce Debts.
! II appears 10 be the consensus among
bankers that during the present year
our merchants and inanciers have heav-
| lily reduced their floating Indebtedness
to Europe previously existing in the
/ shape Of finance bills and similar tenn
porarv obligations; but more gratifying
than anything else are the tendencies
nov manifesting themselves in our
foreign trade. September and October
are always months when by reason or
I the normal outward movement at that
time Of our domestic staples, our foreign
trade balance assumes more favorable
ASPECT. In recent years the country's
/ purchases of goods and commodities
abroad have been so heavy that, taking
the tWelve-TnOnths period as whole
/ they have largely oounterbalanced snip
lments OF merchandise out of the country
1 II has come about at last that our I'M
ports. particularly Of luXuries. are sde-
creasing. and what is most important,
! that eur exports OF manufactured goods
as distinguished from staple commodi-
! ties. are increasing.
There are two specific matters hang
( ing over the general situation, one the
condition of the iron and steel trade
and the other the decisions OF the SUI
preme Court in the antitrust cases. IT
! seems 20 be anticipated on every hand
that. although prices of iron ana steel
Droducts. OF very many of them, have
/ ALREADY been heavily reduced by private
and informal concessions, a general ana
drastic, reduction in so-called official list
nrices" must be made before the trade
once more stands on a stable footihs
and can look forward TO freer move
ment and larger pronts.
Prospective buyers of iron and steel
stocks are therefore not inclined 10
make purchases until the stock market
effect of this reduction or possible re-
duetion in list prices Is measured On
the other hand. present holders OF tiieso
stocks or at least Of those OF the larger
/ ,o,,r,niss such as notably the United
l states Steel Corporation, have not as yet
nm SHOWN any figures which lead them
10 fear that current dividends cannot be
maintained.
LfsuidatIoR Not Compulsory.
/ Also. there is nothing III the Iiioiey
si,,ation which compels or even induces
| h.. means Is