Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-10-16
Willing to Chance Congress.

The theory is becoming generally held
that the election of Dix may be a signal
for resumption or revival of business
confidence and Of renewal of enterprise
throughout the country. The fact that
a landslide of the kind that seems to be
anticipated in New York is very likely
TO be attended by the election of demo-
cratic House of Representatives at WASH
ington and possibly by democratic ma
jOrity in the Senate has no terrors for
those who figure along the lines indicated
Beyond doubt fears Of radical legisla-
ton have great deal to do with the pres
ent depression in business and repression
OF speculative spirit. That is really the
important background feature Of the
market as 1t is found today. 1t is the
thing that is in everybodys mind, and
that persuades people with money to
hold back and to curtail investments
in any and every field where there is
the slightest risk or where values are
likely to be affected by political agta-
ton. and by the carrying out of radical
programs for new laws and for the
harsher enforcement of old laws.
1t is in the dope of the street that
the election of Mr.. Dix by decisive ma
jority will be good for five to ten points on
the buying side of the stock market.
Feeling, as majority of the Wall street
is going to occur, large numbers Of
traders think they might as well discount
the election by taking on few stocks
and raking in that five to ten points
before the ides of November. What is
the use of waiting, they say. Better take
what the Lord provides and take it while
the cash is within reach Then if the
expectations are not realized 1t will be
possible for the alert and feetfOoted
traders to sell out and bank the profits.
This is not the first time the future
has been discounted after the same fash
ion. The same dopers figure out that the
market will be apt to have reaction.
even though the democrats and their
allies win, as expected. This theory is
based on the assumption that the coun-
try at large may take a little time to
digest the significance Of the vote and
not act in the market on the instant.
The theory listens WELL" to use a cur
rent slang phrase.
New Orders Scarce.
The iron and steel industry is unques-
tionably in about as bad a condition as
ii has been in the last ten years. The
trust and the independents are working
almost entirely on old orders. For every
ton of new orders that come in four
or five tons of old contracts go out. Mr..
Schwab in an interview a day or two
ago confirmed this statement very
frankly. Yet it is notorious that the
entire complexion of this great industry
can change from black to white almost
in day. The material is here for an
other great revival in business, and es-
pecially in the iron and steel business
The crop year has been on the whole
eminently satisfactory, conditions in the
woolens and cotton goods trade are as
good as can be desired and there is a
picking up in many other quarters. while
along the general line everybody appears
to be getting ready to move about and
do something when the word is given
from a source that inspires respect and
confidence. Everybody is looking to the
iron and steel division for the inspira-
ton. Canned talk by publicity agents
will not do. Something more substantial
than that is demanded and must be
forthcoming before the public will be-
lieve the apostles of reviving prosperity
If there is the right kind Of an election
result and the interstate commerce COM
mission does not bear down too hard on
the railroads in the matter OF freight
rates the transportation companies may
be expected to set the ball rolling. The
railroads directly and indirectly take
nearly 90 per cent of the products OF the
iron manufacturing industry, and when
they get to going good and strong we are
mighty apt to see wild runaway iron
and steel market. That may come soon
after the beginning of the year. and ii it
does not arrive quite that early the boom
may begin in the early spring or sum-
mer 1t is reasonably certain that there