New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-03-06
ALLAWAY'S REVIEW

Sustained strength IS the weeks record
in the security market. Substantial sa.
vances are scored in all the leading IN
vestment and speculative issues.
This situation is puzzling to profess
sional Wall Street. which has been ensr.
geticaIly operating for an anticipated d.
cline Myriads Of rumors and innuendo.,
have been scattered broadcast in the at
tempt to weaken confidence and induc.
liquidation Stories of direfuI thr.as,
from Washington have been pefdIod
through every Wall Street Office tn.
Philadelphia strike situation has been
exaggerated to national inportaac.
Every argument conceivable 10 bear in
genufty has been promulgated in vigor-
Gus fashion The response is expandln.
uprise.
Explanation OF this is found IN fIud,-
mental conditions - conditions which
predicate an era OF American prosperity
heretofore unrivalIed. The buying Ar
small enthusiastically lot buying-is m
diminished. but IS not sufficient IN ltselr
to explain the sturdy upward movement
now apparent It becomes certain that
the great interests OF the country ar,
believers in the rUture-are NOT only
willing TO keep their holdings. but ara
more than willing to increase them
whenever quotations are driven down
artificialIy There IL nothing sensational
in current buying-nothing OF nlaneula-
tive or fireworks character-tfers Ia
Just simply business accumulation based
upon intelligent recognition Of the dis
parity existing between known and az
certainable values and current QUOTA
lions. This quiet and logical movement
reflects the opinion and action OF our
most important banking interests.
Steel common maintains market leader
ship in both price movement and volume
OF trading. Readers OF this review may.
perhaps, find iteration tiresone concern
ing this stock; but it is impossible 20
shut IL OFT from consideration in any
adequate discussion OF market move
ment. steel conditions are typical and
representative, revealing at present
healthy progress in trade and finance
which forbids the idea OF bear triumph.
Not so long ago Steel common was
smashed down to 10 by reckless shor-
sales. 1t is now practically III points
above that figure and within OF
POINTS OF the highest price at which =
has ever scotland present buyers viii
within the next ten days receive a diyi-
dend distribution of 13s per cent Should
nothing untoward happen in the market
il is a reasonable expectation that this
dividend WILL quickly be recovered-thls
in itself a strong inducement 70 present
buying. Then there is the probability
of dividend increase at the next quar-
terIv declaration, for there is no other
outIet apparent for the enormously in
creasing surplus of the Steel Corporation
than common stock dividend distribution.
Despite these patent facts, there has
been and is q stubborn short Interest," IN
Steel common, which has. of course, as
sisted in the recent rise, but which has
by no means been wholly responsible tors
IL. Something more than mere short
covering is needed to account for the
upward movement Steel business for
the current quarter stays close up at top
levels, and the next quarterly statement
will reveal continue ton of profits on an
immense scale
Naturally this Steel uPlift exercises
tonic effect directly upon the industrial
Iist-it being conprehended that If the
steel business is good all manufacturing
interests must be prosperous INNS
date result is seen in sharp advances
of such stocks as American Smelling and
AnaIgamated Copper-such advances be-
ing no doubt in more or less degree
purely sympathetic, but having also
warrant in the general strength Of the
business situation
Reflex action is found in the railroad
list. for here again the most ordinary IN
teIligenCe can grasp the fact that We
cannot have prosperous industries Wit
out prosperous railroads In the rail-
road list such standard properties as the
Hartman issues, Pennsylvania New
York Central. Atchison. Baltimore &
Ohio. find steady accumulative buying
based primarily upon the excellence or
their income yield and the assured safe
~ of capital invested in them And
these two reasons are appealing power
fully TO foreign investors who are a very
Important factor in day-tO-day pur-
chases. There is enough uncertainty IN
existing conditions abroad 10 make
American investments preferential 20
any others This foreign buying viii
probably increase from now on. Testi-
fving to this is the exceptional activity
of banking houses with English and con-
tinentaI connections
Underlying the entire situation is the
splendid agricultural position and lis