New-York tribune., 1910-05-08
ALLAWAY'S REVIEW

We have had an unusual week-ons
full of abnormal exhibits At the OUT
start optimism was preciptated by rush
ing reports that in France and Germany
and in Great Britain there was sudden
competition for American securities upon
the part of conservative banking inter-
ests And many American corporations
we're named as having accepted foreign
bids for their bonds. st. Paul was in
this list. Atchison WAS there. Chesapeake
& Ohio and Baltimore & Ohio. and others
similarly important. This information.
in extraordinary cOntrariety 20 what
hitherto had been the record. infused
the stock market with enthusiasm, nat
uraIIy enough. Advanced quotations
became the fashion in every stock ex-
change quarter
Wall street for a long time past has
been trying to be pessimiStic: yet upon
the very first appearance Of encouraging
suggestions of the foregoing sort the en-
tire Stock Exchange rank and fle hur-
ried into hurrahs and purchases No
body doubted anything Nobody asked
for any manner of corrOboration- There
was widespread, virtually universal, en-
thusiasm over the discovery that all Eu-
rope was suddenly rushing into a
sprightIy rivalry 10 determine who
should most quickly and most largely
absorb American issues ForthWith, Of
course, Wall Street was able to evolve
Justification a-plenty for the cabled dis
closures Southern Pacific was about
TO distribute S1OO.OG0,OO0 from its
hitherto yelled oil possessions. Union
Pacific was going 10 do something even
larger, Reading had programme CORE
spondingly cheerful-the entire Stock
Exchange list was budding with bonuses.
Even little old weazened Wabash vas
about TO bestow endowments- Not only
in good faith. but with earnestness and
enthusiastically. the average man IL Wall
Street hailed the arrival Of this some
what beIated millennium. Quotations
hardened, even doomed
Then in shocking surprise came an
nouncement of the news as % Engiand's
king The bear contingent tried 70 rise
from it's numbness; prices were ham
mered. some depressing market effect
was exerted And thus 10 the opening
there was a speculative locking Of horns
with results then registered in a single
hours session that leave quotations for
the week altogether upon the side II
the bull party.
That announcement Of the death Of the
most important political figure OF the
world should be made the text in Wall
Street for security market buoyancy is
a record difficult to comprehend IN
him who has just died there was pledge
to the world OF peace: this English leader
Of his age the diplomat Incompatible.
was not merely the steadfast friend OF
America but was ever the stanch in
tervener in all possible controversies be-
tween the old world and the new; and
in so far as our own country is con-
cerned the loss OF such continually
animate and resolute friendship can IN
no way have overestimatiOn-while. in so
far as Great Britain's own issues are
concerned. there is loss inestimable fe
even for safety Euro
pean politics, a boiling caldron, loses
governing influences which have long
kept back threatening scalding Sx-
olosions at embittered national centres
The death of such a man as Edward or
England has in it, certainly, rot ons
whit of warrant for enthusiasm in any
market of the world. And the Wall
Street exhibition OF yesterday is not
merely TO be accounted in bad taste, buE
IS unnatural. abnormal foolish utterly.
Such performance merely provides an
-dgonistic opportunity for enemies OF a
sensible market situation. The record
-rr 10th Of ma AMIR a
ean have no sane relation to value.
There seems though somehow forever
10 be a curious inclina ton upon the part
Of Wall Street toward mental diSlOCat1On
every time anything Of size diseouraSinS
ievelOps-a hurryfng TO the conclusion
apparently, that a few furious temporary
bids a bit of bravadO manipulation can
axtinguish every adversely. Aside from
what in the present instance is peculiarly
bark back 20 the market re-
reptiOn of the dreadful news Of San
Francisco's earthquake Quotations had
been limp They rushed into buOyanCy-
What was iuiItaUIVe-What was sequel
needs no recOunting. The stock market
is never bIuned more than temporarily
Wall Street halls the Rotation OF great
issues or bonds and notes for sale 70
Europe as an unqualified bulIish factor.
Not y single dissentient IS heard in the
cheerful chorus But calm COnsidera-
ton compels attention 20 another phase
oY the question The mere fact that our
railroad corporations are ob!ised TO seek
European financial assistance testifes 70
inability to sell such new securities at
nome. And the low prices which such
nigh class bonds as city uf New York
issues bring no doubt warrant the seek
ng of foreign capital
Furthermore, there would Seom 70 be
no particular encouragement in the ere
alton of hundreds Of millions Of Aneri-
ran indebtedness to Europe by reason o.
these current transactions The bonds
5cld take precedence of the stocks OF
the selling companies and 10 that extent
weaken the position Of the shareholder
for these new obligations bear interest
UhiCh must be provided for and create
actual obligations which must az some
date be paid off In the matter Of the
short term notes. as in the case OF BaltI-
more and Ohio there Is the fixed period
lf three years Evidence OF need or
money is hardly to be welcomed rs a
,ulIish argument Creation ot prior
- -T.aaN