Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-11-06
Banks Control Speculation.

The banks played an important part
in keeping speculation within bounds.
AS pointed out in these letters, the
banking situation was not strong
enough at any time to finance a CAM
paign that called for transactions any
where near 100000 shares a day. 1t
took several strong hints for the bull
leaders to get it through their heads
that the banks were in earnest in adj
vising a drawing in Of horns, yet when
the truth was driven in hard enough
enthusiasm was subdued and the boom
subsidized measurably. 1t was a knowl-
edge that this action would have to
take place that induced the belief in
an important reaction. The underlying
strength of sentiment proved. however,
to be much greater than had been ap-
praised. and we see the pleasant and
somewhat surprising fact of a SUBJ
stantial undertone extending beyond an
ticipated limits Of time.
Speculative attention is now being
given to the problem of what will
happen after the election" There is d
wide divergence of opinion on this in
teresting issue. The surface idea is
that in the event of an overwhelming
| rebuke of Roosevelt in this state the
general public will enjoy a complete
restoration of confidence, which will be
followed by a resumption of business
activity in every direction. 1t is upon
this theory that large part of the in
vestment buying of the last three or
four weeks has been predicated. A fear
! impressive the election In this part of
| the country may be the voting in the
west and south will have a different
| slant. and results be open to a different
construction. The thought obtrudes
continually that no matter what hap
pens the country is very likely to have
| two Or three years of very sensational
political agitation.
Fear Adverse Legislation.
With progressives and democrats in
control Of one or both branches OF Con-
gress, as now seems to be entirely
probable. there can be no escape from
disturbing action along several. dis
tinctive lines, tariff revision clamor
railroads and other corporations, pro-
longation of the fight over freight
| rates. all of this supplemented by a
flood of Investigations covering an in
finite variety of subjects ranging from
the Panama canal down to and includ-
| ing extravaganza In governmental eX-
penditures, political contributions by
undesirable rich and every phase Of the
high and increasing cost Of living.
That this line of agitation can proceed
to the lengths that are threatened with
out disturbing values and further check
ing the return Of prosperity cannot be
nOpeO Tor.
People who take this view of the
future are not optimistic on the stock
market. On the contrary. they believe
that the trend of prices will be down
ward for two or three years. and that
we are in for that long period Of hard
times, with all attendant embarraSS
ments and privatiOn.
Actual news developments this week
have not been of highest Importance
The publicity man of the steel trust
| came out with another one of his famous
canned interviews picturinge the condi-
ton of the iron trade as being LUMINOSITY
bright, although adviceS from the milling
centers are directly in contradiction of
these inspired expressions. A particu-
larry impressive part of this interview
was the announcement that the steel
| trust management was engaged in the
manufacturing business, and was paying
| no attention to market manipulation or
| the fluctuations in the prices of stocks.
Made Wall Street Laugh.
| This sort of thing may be swallowed
| by an innocent public, but it certainly
| raised a laugh in Wall street, where
everybody knows tlat the steel trust
| management includes several of the most
active market plungers in America, men
| who are notorious as being desperate
gamblers and who specialize on steel
However, If that sort of output is the
| tonic required, the premier publicity
agent of the corporation is equal to any
demand that may be imposed upon him
! in this respect. He is certainly a star
performer in handing out the dope. AS
| a mixer of good medicine he has no
equal. The trouble is fewer people take
| it than formerly. 1t has begun to pail
| on the taste.
Speaking of the steel trust, it is ex-
pected that the statement of tonnage on
| the books, due in two or three days
will be very discouraging, and the public
mind has been prepared for the bad
showing.
Everybody rs glad the political cam
paign Is drawing to a close. There is
not much chance for traders to get a
comprehensive line on the market until
after the ballots are counted and little
| time given to estimate effects and conse-
nuences. The price changes of late are