Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-07-31

long decline which has been going on for
nine months or more no great bear leader
came to the front. There has probably
never been such a break in the stock
market where SO little has been heard of
individual winnings. The market seemed
to go down at it's own weight To all
surface intents the market was gravity
proposition. 1t is clear however. that
lurking in the background was a formid-
able. and you might say invincible, array
of rich men influential in railroad and
industrial management, as well as in
bank control. who were nursing crouch,
and who were unwilling to see matters
improved until the country had been
given an object lesson. They spell object
lesson with the letters "ruin," and it has
been duly administered Possibly the re-
coil may eventually hurt the men behind
the guns as bad as it has the general
public, and especially the speculative con-
tingent.
Copper Situation Improves.
The copper situation is in better shape
than it has been for year. A full
fledged "gentlemen's agreement" for the
curtailment of production is now in force.
with ]. P. Morgan and his big stick
ready behind the curtain to see that the
terms of the agreement are carried out.
Very few of the big producers are strong
enough to finance their own affairs in
dependent of the good will of the banking
combinations of which Mr.. Morgan is
influential almost to point of despotism.
These combinations have the power to
discipline and punish, a fact which has
been demonstrated many times during the
past two or three years, and people of
means are becoming daily more reluctant
to provoke antagonisms in that quarter.
Undesirable citizens who fly the flag of
independence or insurgency very quickly
find they are unable to make Roadway.
They do not get anywhere. Banks where
they have been accustomed to borrow
money or secure credit suddenly turned
cold. They would like, of course, to
oblige old friends, but they are unfor-
tunately loaned UP to the limit and must
curtail instead of expand.
The understanding between leading
banks and bankers in the big fiscal CEN
put your hands on. although it is there
as living force as inpenetrable as a
granite wall. although elusive to inquiry
or touch. This is the one thing which is
likely to compel the enforcement of the
deal for the cutting down of copper pro-
duction until the time arrives for the
completion of the titanic merger which is
now under way. This merger may be put
through during the autumn months, or 1t
may be deferred until the Supreme Court
acts on the Standard Oil and Tobacco
trust cases, which are felt to have a
vital bearing on future trust crSaniza-
lions. There may he a small-siZed boom
in copper shares on the stock market
here. in Boston and other cities, but the
really important people identified with the
industry will be satisfied to see their
securities remain about the current levei.
Most of them have been artifcially high,
and any attempt to run boom might
end in disaster. The risk is too great to
try.
Veritable Rout of Bears.
Tie market action which followed the
climax of housekeeping described in the
foregoing was a veritable rout of the
bears The active stocks jumped to 8
points in two or three days, almost with
out reaction. At the bottom there was
a bigger short interest than at any stage
of the slump. Such is almost invariably
the case at the end of every great down.
ward sweep in prices When the market
gets to the low point nine spectators out
of ten have worked themselves into the
belief that short sales are dead certain
to yield profits. 1t is the same at the
elimination of a big market boom. only
it is the bulls who get caught then In
stead of the bears. Then the market is
overbought excessively and the slump
catches unnumbered thousands with stun
bought on margins which come out on
varying stages as prices recede.
In the estimation of experienced trad
ers the pace set on the recovery was
too rapid They figure that in the natural
order Of things the short interest will
become so reduced in size that the mar
ket will be deprived of an important eie-
ment of support, and will, therefore, re-
act sharply. This seems to be the rou-
tine thing. and the professionals are
acting accordingly. After the very sharp
rally which has taken place.. substan-
tlal break is looked for, although the
general feeling is that the buying side
can now be taken and stuck to for a
considerable period.