The Washington herald., 1910-11-28
WALL STREET NEWS
Majority of Stocks Show an
Extreme Dizziness.
PRICES ARE NOT TOO HIGH
Failure to ''Bring Out" Securities
Taken as Evidence of Solid Basis
OF business Interest I'm British
Elections and In the Forthcoming
Report of the Comptroller.

New York. Nov, 27.-PeopIe generally
still continue 10 talk and think OF the
present stock market as one ia which
there are daily dealings in a large and
varied number OF stocks; but It has come
10 be understood by those in close touch
with the actual condition OF affairs that
trading in three stocks-the Union Pacific
common, United States Steel common,
and Reading common shares. although
10 less extent in the last named than
In either OF the two others-has come TO
make up each day from three-ffths 70
two-thirds of the aggregate business done
in stocks altogether. which at most is
not great
In many stocks now. not hours but
days elapse before transactions in them
occur. Among a somewhat larger class
only one or two hundred shares OF an
issue are dealt in during each stock ex-
change session. and, as might be ex-
pected. the market for such issues has
become poor II IS interesting 20 note
that despite the great rise IN a few quar-
tiers the average price of stocks is sub
stantialiy the same as six weeks ago.
Last week the market was left TO It's
own natural course. which was one or
drift. Support. however. was extended
whenever the room trading element sold
prices down more than a point. so that
affairs presented firm undertone.
Mere Pool Manipulation.
It is strongly urged IN defense OF the
existing range Of prices. and the argu-
ment is deserving OF fair and cOnsiderste
attention, that even If the rise in the last
few weeks in a few stocks has been the
result OF mere pool manipulation, the fact
that no large amount Of actual liquida-
ton Is in progress at the higher range
that has been reached is a proof that the
mass OF holders of these stocks does not
think quotations for them too high or
resting upon an insecure foundation. In
other words, or as il IS commonly put IN
Wall street. the high prices 90 not
bring out" stocks. and the contention IS
that a reasonable inference therefrom is
that the popular judgment inclines 10 the
opinion that prices are not too high.
For the time being there is every indi-
cation that money rates viii continue 10
work downward. We have passed the
from
the East 10 tho western part OF the
country, and for some time to come the
movement OF funds is apt TO be from the
farms and plantations to the financial
centers.
Farmers Hold Back Crops.
But it remains 10 be seen how far this
normal trend may be interfered with by
a desire OF agrieulturists to hold their
crops from sale at what they think are
the low prices now current and to what
extent temptation 10 send money 10 the
financial eenters may be modified by the
low prices for its use there obtainable.
As regards other countries, money
seems to be as easy comparatively IN
England as IL Is here, despite the Bank
OF England's 5 per cent discount rate;
but here again the great question arises
whether the prospect. which now seems
to be assured. OF such a result of the
coming general election in England as
will lead 10 the establishment of what
Will be virtually a single House OF Par
lament there may not be attended with
financial trouble.
A political event of this kind would be
the greatest social change that has taken
place In the British empire since the
revolution OF 1855 II would mean that
legislative control in England would pass
into the hands OF a single body OF men.
who by a vote taken in a night might
like those In the French convention, &C
complish the most widespread destruc-
ton OF property and personal rights, a
veto power is still left, of course, TO
the English King but the use of this
has lapsed so long that its exercise can
with difficulty be revived. Here is one
reason, at any rate. that will probably
induce the Bank OF England 20 keep It.
self as strong as II can for an indefinite
time to come.
Interest in COmptrOIIer's Report.
The greatest interest IS being mani
Tested In the forthcomip-, report of our
own Comptroller OF the Currency, ac-
companled as ii will be by similar re-
ports of the Individual banking depart
ments OF the leading States. showing the
condition of State and national financial
Institutions on November 10 SO far as
fragmentary returns have been made
public they seem to indicate that the
banks viii stand just about where they
did on the corresponding date In 1903,
with the chances favoring the probability
perhaps that they will be a little better
of than at the former period. Assuming
that this prognOsis proves 10 be correct
the question must be answered Just how
a boom" may be wisely anticipated in
1911 any more than It was IN November a
year ago
AS 10 the business situation proper, a
comparison OF the state of affairs to-day
with that OF a year ago Is also suggestive.
Then business activity. especially In Wall
street, was great, and the view held by
pretty nearly all people OF a speculative
turn or mind was that 1910 was going 70
be the biggest year IN the eountry's com
mercisl history. But as 1910 wore on IL
was found out that new orders did not
flow into producing establishments with
the same rapidity as they did ia the fall
or 1903. and this falling of has now be-
come such that most manufacturing con-
Germs are entering 1911 with the smallest
volume Of orders on their books seen for
a long time
The railway companies OF the country
are planning no new construction. and
ara only making contracts with the steel
companies for repairs and requirements.
and these only in moderate degree.