New-York tribune., 1910-08-14
ALLAWAY'S REVIEW.

Wall Street is much pleased with "a
self. Something of old time strength,
old time confidence. returns. The weeks
record Is a record of buoyancy. Almost
everything has advanced. AS 10 why
and wherefore-nobody knows, though
there are hosts who profess to know
competing with other hosts who not too
modestly announce that really all this
pleasing change has been brought about
by their own performances.
Basic conditions show no consequential
alteration All the fundamentals are In
dicatihg precisely what they indicated
month ago and prior thereto Money
market status is supposed 70 be qualified
-helped-by gold imports and by the
disclosure that Western banks are noe
cOngeSted to the extent that recent sem
sational reports averred. AS TO gold
imports IL is. OF course. the part Of intel
ligent comprehension to understand that
what metal comes this way represents
merely the exercise Of borrowing ability.
We are paying for the temporary use of
European gold. This we can well afford
TO do considering circumstances not all
Of which have been publicly exposed
There is only foolishness in any pretencs
that foreign money IS coming this way
to pay trade or security balances due US.
On trade balance we are tremendously 70 2
the bad. Current purchases OF American
stocks by London and Paris and Berlin,
all combined, are insignificant beside the
preceding outpour of half a year. What
soever the reason-and the oracles mar
shall a hundred easonS-England. Ger
many and France have been denudins
themselves of our shares. This has been
the policy all this year Of investors n
Ard eIICn hfIE1n2
now IS in evidence con some days IL
seems very great. tndeed) is speculative
purely. II would be- in fact, well within
bound to suspect that in very large de-
gree present European buying mas actu-
ally its origin in New York-is not at All
what IL pretends TO be. represents but
one phase Of the comprehensive rlanlpu-
lation which is under way
AS to crop conditions. there seems TO
be betterment Rains have been copious
in drouth districts. Further immediate
loss is checked. But il is difficult TO ac-
cept Wall Streets sudden enthusiastic
view that all trouble IS over damage
already inflicted is stupendous. n Ne
bra ska and Kansas and elsewhere burned
cornfelds are beyond resurrection
while because of the abnormal lateness
OF this years harvest time We are pretty
sure 10 be eventually afflicted by frost
scares This is going some d.stance for
buga boos; but it's just as well 70 keep
in mind even the utterrOst influences
Irhfch hear campafgners may later resort
TO In its present mood Wall Street
would give scant consideration 20 any
SUCH argument: but Wall Street moodS
are f1fckering and uncertain things. NJ
optimism can be guaranteed 70 last more
than week
To some extent. even materially. rail-
wav shares are helped into Stock Ex-
change popularity by annual reports ot
earnings which this week are made
public. Union Pacific Southern Pacific.
I.ehigh valley, Chesapeake & Ohio and
other representative properties make ex-
ceptionaI exhibits Some Of the Or1clal
announcements are curious in view O
recent excited outbursts upon the rarr
of managers who have been prOclalmlnS
that only destruction was ahead i higher
traffic rates were not forthwith proTlded
Union Pacific shows a % per cent divt-
dend earned Urgent need in that quar-
ter for larger payments from the public
may be difficult of comprehension by or
dinary minds.
But what the railroads may be fairly
entitled 10 plead is that the rernarkaoie
dividend shOwings announced upon past
performances are not possible under new
conditions (steel rails. locomotives. cars,
Ia abor-every essenttaI-soartng in pr1ce);
but that in fact. the rates which have
made these extraordinary earnings are
actually in danger-foT. though wan
Street ignores the fact. there IS more
consequential tendency toward reduction
than there is for advance IN railway
charges The investor who can sell
stock which is now earning % per cent
can sell that stock on that showing
IS taking long chances in waiting TO sell
it in the future when % per cent VII
he hut a recollection
There is nothing in politics which IS
promising to safeguard, much less ex-
pand. anything like % per cent Thero
are plenty OF things in politics which
promise something very different
One encouraging development has TO
do with national mining possibilities
probabilities. Heinze standard properties
are to get busy again. amply financed
The sturdy way in which Anal
zamated Copper vfthstands attack may
be taken to signify more than appears
on the tape. and IL IS disclosed thal
European capital in large volumes IS %
ioin American enterprise in ir1portant
Western developnents-whatf fr1pends N
the Consolidated Arizona properties
being an example There is about 70 De !
significant announcement there
Some animated discussion proceeds as
TO the market for steel rails. il being IL
sisted in some conservative quarters
that a very material cut has been made.
Nothing definite is disclosed; the matter
drifts into a vordy dispute This
cIirious-in view OF the much announcer
policy of openness in the United states
Steel quarter An official statement
would forthwith dispose of all the
wrangling But there is no official an
no,,ncennent And The tendency is rot
unnaturaIIy toward acceptance OF the E
theory that surreptitiouS bargains are
being offered. II is impossible to beheve s
that rail prices will be lowered 10 "a
yored customers. While list figures are
demanded OF others. That there should
be recession in rails and in other steel
products ought not 10 be surprising.
That the market is slow for ali railroad
supplies everybody knows That sur
plus product has been piled up by me
Steel Corporation and by every other
manufacturer Is equally we'll underStood
And. similarly appreciated. is the policy
which under such circumstances is ilnl-
formly pursued by the modern merchant
II buyers do not take goods az schedu.s3
figr1res there is no profit in Sulking ara