Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-05-01

with II,eubrious reports of the condition
of the trade. Mills were shutting down.
orders had ceased coming IN, pig IRON
overproduction had become grieVou s..
gloomy. The street began to argue tnat
it might not have been SO clever. after
ALL for the trust management TO boost
dividends in the face Of such dreadful
condition OF aHalrS.
Charge of Black Horse Cavalry.
The market hesitated, then tottered and
presently plunged. The black horse cav
airy made a savage charge. Union Pa
cifc, Reading and the Coppers, next to
Steel, proved most vulnerable and broke
two full points or more. 1t was an in
glorious finish to a session that had start
ed in so brilliantly. The slump continued
throughout Thursday, and Friday there
began a strong and evenly distributed re-
covery.
With heart surcharged with suspicion.
the street Thursday conceived the notloh
that it had been gold bricked and made
the victim of a thimble-rigging scheme
to give insiders chance to unload. Inc
steel trust management came In Tor
denunciation loud and deep, and possibly
wholly undeserved. None the less.
traders recalled occasions in the past
when insiders in the big industrial had
played it low down on the public. there
by demonstrating superior ability in
both the operating and the stock market
departments or the business. Seemingly
they have the trap set to catch EN-
a-coming and a-going y
Just the same, the players like to
gamble in Steel shares 1t Is the undis-
puted market leader, having taken the
ranking position away from both Union
Pacific and Reading. There has not been
more fragrant manipulation in special
ty since Mr.. Hartman departed the
scene, and neither Union nor southern
Pacific was ever in more perfect control
than Steel at the present moment Ihe
singular thing about it is that the cor
poration's standing does not appear to
suffer in the slightest degree by reason
of the fact that daring and tremendous
in the management On the contrary. 1t
is especially marked as about the purest
and best creation in trust form extant-
something above reproach and too re-
spectacle for criticism.
Cheerful View of Crops.
But enough about Steel. There are
other things of interest in the market,
although possibly not SO dramatically en-
vironed. There are the weather. the
crops and the money market. for IN
stance three mighty important factors
All three are figuring largely in the max
ing of prices. The way the market
broke the first of the week what
proved to be exaggerated reports of crop
damage due to low temperature ana
storms in the west and south shows how
sensitive prices are to that influence
Bumper crops are admittedly vitality nee
essary to RESUMPTION or business pros
perity as advertised, and anything to
threaten crop impairment naturally
strikes a chill to the marrow of specu-
lative fervor That was what happened
as result of the cold and storms that
descended upon such a large grain and
cotton area Happily latest reports give
strong hopes that in no considerable sec
tions is the damage irreparable. con-
viction that is now very generally heid-
conviction. by the way, which is
the strongest underlying feature of the
market and business situation, and one
which will outlast distrust and uneasiness
engendered by cross-manipHation on the
exchanges. Nothing has been watched
this week with closer interest than the
course of grain and cotton prices, es-
pecially the distant futures.
AS for the money situation, it may be
stated that the financial market has
taken the sensational gold withdra walls
with surprisingly slight evidence of eX-
element, although there has been going
on under the surface loan contraction OF
importance. 1t is quite likely that the
calling of loans has been more respon-
sible than is generally appreciated for
the pressure on the stock market that has
been witnessed at times. Something had
to be done to Offset the wrenching gold
Withdrawals. Gold to the amount of $S2,-
COO. 900 cannot be taken out Of New York s
stock of metal in four weeks without
forcing reimbursement Of the local bank
thing more be done soon to settle the
growing international trade balance more
goli will have to be shipped.
In Hands of Bankers.
The great banking interests can make
this adjustment easy or hard, as they
like 1t will not be absolutely necessary
to await decided increase in merchan-
disc and commodity exports or a decrease
in imports to bring about condition of
ease If it suits the great banking in
terests to put balm on the situation they
can do it In forty-eight hours by selling
finance bills abroad, or arranging to
borrow any amount In London the
continent sticking up American stocks
and bonds as collateral. Both Of these
expedientS have been reSOrted to many
times In the past and doubtless will be
many more times in the future. So. it
will be observed, the fate Of the money
and stock markets is in the hands Of
the great money combine Of this city.
This money combine is not a mere figure
of speech. 1t is a terribly tangible real
ity It was put into organized form
when Mr.. Hartman undertook and car
red through the most stupendous bull
campaign ever seen in the history of
stock speculation, campaign that could
not have succeeded if he and his asso-
ciates had not been in command Of the
aggregated resources of the principal
banks, trust and insurance companies of
the metropolis. Hartman is dead and his
power transferred to Mr.. Morgan. In
some respects the latter lacks Mr.. Harri-
mans aggressive market leadership, but
he has associates who are ambitious to
/ shine as speculative and constructive
Napoleons and who are very busy men.
The money combine is stronger and more
closely knit now than ever before. 1t has
become a huge dominating machine with
absolute control over the destinies of the
stock market and dangerously powerful
over the business affairs of the nation.
nra> l,ondhollses and their aaleanen