The Cairo bulletin., 1910-02-14
Special,


II IS source OF qualification to
once more be able to take a cheerful
view Of the broad financial outlook.
Fluctuations in prices of securities
from day to day may. it is true, still
continue errratic; accidents may still
happen but there are distinct midi
cations that the storm is clearing, In
deed, the weight of uncertainty and
dread has already measurably light
ened and the more general DISPOSE,
ton in usually conservative circles
now is to appraise the controlling fac
tors of the security market in a cam,
sane. manner
Change TempcramentaI.
This does not mean that the fun
damental situation itself has sudden
ly changed. The real change is tenn
peramental, affecting chiefly the pop
ular Interpretation of the situation.
Threatened legislation having been
the preteXt for numerous concerted
drives against a highly nervous mar.
ket, is now being appraised at its
real value; and it is found that appre-
tensions have had slight tangible
basis. The real influence behind the
recent rapid and serious break in the
stock market was the fact that i'm
portant interests had forced the price
level up to a point not justified by
dividend returns, either present or in
prospect--a fact that was we'll known
to these interests Amidst artificial
enthusiasm they were successful in
distributing a large part of their Sc
curities among weaker holders, who
have since been compelled to take
pretty severe losses, which they
should charge off to experience ac-
count and profit thereby; their en-
forced liquidation created a situation
that at times fell little short of de-
liberalization. Having sold out at high
prices these large market interests
were not adverse to taking the double
advantage of profits on short commit
nients ana of repurchasing their sup
plies of securities at the resultant de-
clines, extending in the instances Of
some standard stocks 20 to- 80 points
from the, high prices reached, There
uron The fear of adverse legislation
became opportunely unsettlng and
was insldiously encouraged to take re-
sponsbility for the demoraIized con
litions, being able seconded by equal
ly distorted views of the disorder to
result in the event Of the supreme
court sustaining the lower courts by
declaring the Standard Oil and Amer
lean Tobacco Company illegal .combi-
nations on the ground that they re-
strain trade The absurdity of this
undue anxiety has already been indi-
Gated in these advices. 1t is worth
while. however, to once more look the
legislative situation frankly in the
face, beginning with the administra-
TONS proposed new laws The best
in formation from Washington is that
neither the administrations Railroad
Regulation Bill nor the Federal incor,
poration Bill will be enacted at this
session The object Of their introduc.
ton has been to subject them to the
crucial test of public discussion and
criticism by which their unwise or
dangerous features may be exposed
and eliminated before they are placed
upon the statute books. 1t is a safe
assertion that when the admnistra.
TONS measures are finally enacted
they will spell increased value and
solidity for the higher class of Sc
,urities that are traded in on the New
York stock exchange President Taft's
Federal Incorporation Bill will, in my
opinion, be as drastically changed In
t provisions before it gets through
congress as it Is drastic in its original
form, and when the sting is eradicated
It will be perfectly harmless to the
stock market, but beneficial to the
securities dealt in at the New Yorl
stock exchange.
The Trust Cases.
n