New-York tribune., 1910-01-30
ALLAWAY'S REVIEW

Iulteu states Steel common Ss1I,
the close of this week about two ,a;r.-
lower than was bid for II week a..
This record closes a week of stock ma
ket agitation for a long time unnr.
cedented: for. during this past week Wau
street has had aggressive bes-ish M
nipulation, which has not hesitataa ;.
make use OF most shameless misrenra
sentations. has Srasped at even the mos,
remote opportunity TO discredit invss,-
ments and dislodgs them. reckless, !.
libels upon men who are entitled to -,
utmost confidence OF trusteeship
Concerning the United states ST.,
Corporation-the statement made pnbI,,
last Tuesday for the finai quarter .,
1909 more than fulfilled the MOST "a,
guins expectations. both as to revenp.,
of earnings and future business bootsa
Much loose talk. much groundIssz 90.
sip, is current concerning this gr.a.
steel business. III the policy were in
force OF distributing net earnings =.
earned tho common stock would nov. bs
receiving at least IL per cent per ann.rn
That il is enjoying but a modest psr
cent-with. OF course reasonable nroz
psct of quick increase-simply testIsex
to the extreme conservatism and ui.,
provision for the future OF the fnanciers
responsible for the corporations man
agement. No one questions the veracitv
of the Steel Corporation's statement. No,
the most reckless retailer Of xosxip and
rumor pretends 10 challenge their ac-
curacy-and by this simple test the real
value of Steel stock IS ascertainabla
The influence of these Steel stocks on IN,
security market is inyigorating Thsv
of course. have temporary dspressienz
when the entire list is affected hr
liquidation waves OF by bear attach hu,
they do not yield TO the danger poins
At comparatively small r-cessions ia
tent buying orders come into force fror,
investment quarters. 1t is manifest thai
not only in this country but also abroad
there is wilhngness-eagerue ae-
eunnulate Steel stocks AT every Favorable
opportunity.
IT is appropriate TO dwell upon rht,
particular security because Of It's recos
niZed baronetric character. fts irnper-
tance in volume, its close relations with
railroads and with the general business
of the country, make 10 the standard
test or market movement. and as SHen
its action clearly reveals confidence IN
American conditions. AS Steel goes. -
must the market GO.
Wall Street continues TO suffer from
severe hysteria- Its professionals persist
in picturing President Taft as an esr.
It's professionals vapor vaguely OF ter
rible things 10 be wrought by Wash
ingten-' What induces this singular
frame of mind is difficult TO account for.
unless it be the sheer necessity Of
large short interest to believe anything
TO help out OF course. ther. is norh;nx
more silly than the idea that our Ad-
rninistration and Congress il engaged i-
the business OF smashing prosperity. II
is certain that there is fixed intention
sternly TO forbid spoIiation OF the putlir
but that is no bear argument-suite
the contrary. No man OF Corporation
engaged in the conduct of honest brsi-
ness need fear anything frorn wasAine-
ton-the overwhelming percentage Of
American business is honestly conducted
That these views are entertained hy
such men of affairs as James J. HiiI and
J. Pierpont Morgan Is testified 90 ts-
after day in their utterancss and N
their actions.
Terse summarizatien Of national fun
damentats j. presented IN an address
made IN Philadelphia this week bv the
Hon. Leslie NJ. Shaw. former Secretary
of the United States Treasury ard rsr
at the head Of one of the most progress
sive OF the East's important banking IN
stitutionS-Mr. Shaw saying.
THE American people are the g-est.ss
consumers upon the earth. consuming nearly
three -fo1lrths Of the total production 0t al
things, and importing great quantities 81
things each year in addition. OF forty-tve
billions OF products we eonsurns thirty
billions ourselves, exporting the rest We
are. therefore. going now at prstty far
enjoying the manifold distinctions that 60
with our reputation a. consuming people.
We must look ahead and become as great
themselves and We viii always have a mar
ket for all that we can grow Consurnp-
tloR. nc r. however. et .h mas mnupted 10 an extent
tion has become the chief factor IN thfs
country's foreign and domestic comnercs.
We produce as much annually as France.
Germany and England together and MIL
ions more, and We consume, hgurativeiy,
the most Of it.
This is the view OF a banker sstusa
experienced and independent This sx-
presses the sentiment and the Judgment
of one who. recognizing national Ere
eminence. refutes and tramples psssin-
ism.
1t is foolish for any friends ot the Tnsr~
ket TO urge that current weakness Is IN
natural, unwarranted-for during the
week we have had almost every day dis
coneerting developments. What has hap
pened in the way of destruction al Paris
is enough to account for investment Esf-
vOusnesS; and added to this we have
dismissal of recent free -and-easy cisiO
that corporation enormities like those OF
the Sugar Trust. corporation compliea-
tions like those of the Tobacco Trust
corporation litigations like those Of the
Union Pacific-the Government corr-
plainant in all OF theuu-ars to re. on
hand, dismissed. What is the truth Is
that there is not going 20 be any GOV
ernmentat compromise with corporaucn
liability anywhere. Sensible men un-a
derstand this, appreciate il. and--actin3
upon it-are, not strangely. sellers On
stocks on speculative account
Through this we have an extsncso
short interest in the general market 30
far as professional spectators are con-
cerned four out of five Of them haye scin
stocks they do not owp-hOpinS TO -
able TO buy them back at recessicns
caused by the liGuidating sales OF actnsi
in rA however