The Washington herald., 1910-05-16

New York, May 1.-two important
events lately lifted the security market
out of the rut in which it had been travel
ing for a good many weeks previously.
One was the news OF the large bond sales
made by our bankers TO foreigners and
the other that Of the death of the King
of England. The one was favorable and
the other was unfavorabe from a finan-
cial point OF view; both were unexpected
Since then the stock market and the
financial situation generally have again
displayed a quietng down tendency, but
it is fair 70 say, nevertheless. that the
prevailing sentiment both here and abroad
regarding business and financial affairs
Is more cheerful than it was month ago.
There is good reason why a normal
course of market affairs at this time
should be toward dullness rather than
pronounced activity without. however.
moving at all in the direction Of weak
ness.
The month of May is the great forma-
tive month OF the year nearly every
where I'm the business and financial world.
At the close Of the period men OF expert
ence In reading agricultural indications
are usually able to make up their minds
with some defnfteness as TO the prospects
Of the years harvests and the year Is
then so far advanced that broad con-
victions as TO the general business out
look begin TO be formed.
PeNsimism i'm Ascendency.
No doubt at the moment a feeling is
prevalent that the extremely optimistic
views entertained toward the close Of 1909
as to the business developments in 1910
are not being corroborated by results. but
Il IS obvious that this is only because the
ideas referred to were so utterly fanCi-
ful and absurd. Many people got them
selves in the way Of thinking in the fan
Of last year that business in the succeed
Ing twelve months would be- so to speak.
that OF a rs or 125 per cent year. which
would, Of course, have been phenomenal.
The fact is as now appears. that adopt
ing the same style of comparison just
used something like a % per cent year
is going on.
This according 20 ordinary standards.
would be sufficient 10 satisfy any rea-
sonable person. But pessimism Of the
Wall street variety is. of course. ex-
pressed. because there has been a species
OF comedown from the eXtravaEant
hopes Of an earlier period. Thus while
professional speculative sentiment I'm
Wall street IS inclined TO be "bearish"
and as much as possible is made by the
stock exchange room trading element
over every adverse factor in the situa-
ton that can be imagined. optimism is in
no way disturbed In the larger banking
or financial circles or among business
men as a whole No doubt certain busi-
nesses are particularly depressed. but
even IN these respects a change for the
better is visible
drastic curtaument Of pig iron pro-
ductlon has set in that bids fair to re-
duce production Of the commodity below
consumption. At the low prices recently
made for copper metal heavy buying Of
the commodity was stimulated The jew
elry trade Is dull but this is offset by
the nourishing state Of the automobile
Industry, and It IS now manifest that II
is the last-named branch Of luxury to
which American expenditure OF money
for such purposes is now attracted, such
expenditure necessarily involving a re-
duction Of outlays I'm other directions that
up TO the present time have been tradi-
tionally fashionable and customary
Nowhere else I'm the world is there
another such great country and great
nation still In the making as lies between
the Great Lakes and the Gulf Of Mexico
and the Atlantic and Pacific oceans. It
IS estimated that our railways alone need
TO have $500.O0OOOO a year spent upon
them for many years TO come.
If work Of this kind is 10 go on. It IS
simply impossible to provide all the
money for II, and there Is no more
indignity involved now than at any pre-
vious time in our countrys history in
asking Europe 70 buy our railway stocks
and bonds.
As regards the recent exports OF gold
from our country and return buying Of
our securities by foreigners. these have
undoubtedly served the purpose Of ac-
complishing an all-around and most on
perfume relief from a state OF business
and financial tension. The hope and the
strong probability is that later I'm the
year the balance OF agricultural trade
will be a good deal more favorable 10 us
than 1t Is now. A new crop year Is lust
being entered upon, and as far as can
be seen abundant harvests are promised