The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1910-02-11
u s. WEATHER BUREAU February 10Last 24 Hours Rainfall So
Temperature Il; Weather. rainy.

preparing tobacco and carrying eiSht
lust as before. AS Mr.. J. j. Hill trItely
remarked the other day: ''What differ
ence will it make whether owners have
one green certificate to represent their
interests or two red Ones3 AS tor
the policy of President Taft, there is
no reason to anticipate that he Will
carry it ont in reckless fashion. Mr..
Taft 5 disposition is to conserve and
not destroy property interests, and IN
any event he can do neither more nor
/ less than aid in the prosecution of law
/ breaking corporations. Not few OF
our large corporations have been illegal
~ put together. and proper reconstrue-
ton will in the end do good and not
harm. Especially where monopolies are
checked and their power for injury pre-
vented viii the effect of the decisions
be beneficial. Some day investors will
come to realize that no industrial secu-
rity earning large profits based purely
, on monopoly can be regarded as hav-
| ing value of permanent stability. In
! dustriaI monopolies-those based on pat
ents excepted-ara regarded as against
! public welfare and will always be ex-
posed to popular attack, hence their
undesirability as investments.
The money market shows somewhat
| easier tendencies. Funds are returning
more freely from the interior, and the
surplus reserves are rising in conse-
/ quence. The situation abroad is also
| favorable in this respect. considerable
! ease prevailing in London. Paris and
Berlin. The great floods in France
causing loss estimated at between
100000 900 and S2OO,000,000, must
have some effect in Paris, although the
reconstruction work which will be re-
quired can not make any sudden de
mands upon the money market. France
is financially strong and optimistic SC
that a disaster Of this sort will only
| exert a passing effect. London is be
coming more hopeful. and further re
ductiOn in the bank rate is not impTOb
able. Europe is Just now exceptionally
free of international friction. The stu
alton abroad, therefore. is generally
satisfactory from the financial point OF
view.
At home the situation is somewhat
confused by temporary drawbacks. The
! agitation against the present high cost
Of living, which has spread like wildfr,
! from the Atlantic to the Pacific. has al
important political significance, mas
much as the discomfort which it implies
unless checked may easily be the occa
sion for a great deal Of radical and in
furious legislation. Already investiga
tions are being initiated that will fur
nish fresh material for the agitator, anC
unless some means are found to satisfy
this discomfort it may easily become
much more disturbing factor than ha,
y-.ar 4 =
be conducted free Of political animus
ii may accomplish much good by pro
| voking discussion and showing what are
the real reasons for present high prices
As already stated in these advices. higl
prices are due to many and very com
plex causes, and little relief can b,
expected from legislation II is largely
an economic movement. and one thai
with time and patience will work ou'
its own solution far better than through
any legislative meddling.
While there are reasons for unsettle
ment as noted above. the fact should
not be forgotten that the better elias.
OF stocks have now reached a poin
where they are sure to attract the at
tention Of investors. With decline O
ten to thirty points IN many of the bes
issues it is evident that their invest
ment qualities are much better thar
three months ago. Stocks are now be
ing quietly picked up by shrewd buyers
for permanent holding. and should tn,
decline 90 much further it will be found
that the floating supply of securities ha,
been materially diminished Stock
have gone from weak into strongel
hands in considerable volume, and thu
possibility of the bears meeting will
further success on the decline is con
stantiy diminishing. Fundamentals
conditions are sound. and the prospects
are that before midsummer the market
will reach considerably higher leve
than the present one. While the present
tone of uneasinesS cont ues it is no.
impossible that still lower prices NAV
be reached, but the better class O.
stocks can be considered as purchas,
upon all pronounced breaks. for The
market IS near bedrock figures and any
important decline is sure to bring out
strong buying.
The bond situation in not satisfactory
OWING to lack of BUYERS. but this may
be partly due to the fact that a present
level stocks are more attractive
number of new issues are still held back
awaiting more favorable financial con
ditlons. and nothing is likely to assist
more in this respect than the recent Sc
we're decline. Secretary MacNeagh :
bond tax proposal is not likely to com
mand general approval. It is at best
an eXpedient and not cure. Shorr
term obligations until currency reform
IS possible and no harm would follow
he Government rgK-inO hl++ar ro+.c e..