The Washington herald., 1910-05-09

; New York, May S.-From the extren
e pressure brought 20 bear against ~
I stock market during the fore part ,
last week casual observer might hay
inferred that either some grave fnancl;
3 calamity was impending or that a gres
j speculation for the rise that had run fc
long time and had become topheav
was crashing down.
OF course, every sober-minded individua
knew that no such events were IN prog
ress nor threatened. There has not bee
time in years when the speculativ
stock market has been In such a stabl
and secure state. so far as outstandin
commitments for the advance are con
cerned. as az the present moment
Every source OF trustworthy lnforma
ton attests the fact that the ouantit,
OF business now carried by brokers f
relatively small. and throughout las
week. when money rates advanced. &
was stock exchange commission house.
! themselves that did a large part OF III,
lending Of money that was done. In last
Tuesdays decline many stocks fell TO By
/ far the lowest levels Of the year. thi.
record also holding true Of the average
| price OF railway and industrial shares
altogether.
few among the leading issues were
quoted at higher range than in Febru-
ary' when the purging process in the
market was so drastically conducted. but
these were IN nearly every case where
advances in rates OF dividend distribution
have lately occurred. Moreover. a com
parison OF prices showed that the promi-
neut stocks were in the main not only al
new low points for the year. but lower
than they were al the same time In the
preceding year
No Dividend Reductions.
There Will De few critics who will da,v
that in this intervening period both the
general wealth Of the country and the
particular value Of the specific properties
concerned have increased. There IS no
fear OF dividend reductions. but rather
the prospect OF dividend increases in the
year 20 come. and therefore. with the
standard shares so quoted as 70 make the
Income return from them much higher
than the rate that could be obtained for
the use of money in the open market
buying OF these securities OF a much
better quality than any noted for months
back was naturally provoked on the part
or people not only in our own country.
but in Europe. Takings Of stocks for
French and English account especially in
the week were not infrequentIy esu-
mated as being in excess Of 10000 shares
All this, OF course, began 10 make pcssi-
mistic sentiment in tho security market
little less popular, and in the more
calm consideration OF affairs that Was
thus Induced 70 soon became manifest
mat not only was the stock market heav-
iy 'overs0,d.' but that the decline had
run 20 lengths entirely unwarrantad 1
sither by existing or prospective conGi- /
lions. The true reason Of the fan was /
little more closely analyzrd. and mar
iet sentiment was not long in setting II /
upon the conclusion that the dr0p I'm
prices was mostly due 20 the slight but
.tective push IN a downward direction
'iven al time Of prevailing financial
uncertainty by a rise in money rates 70 q
high level and by the check
o business afforded over "a large part Of
he country by the recent spell Of frosty
Weather.
Great encouragement is. finally. TO be
rawn from the declining tendency in
rain prices and those Of other agrI-
ultural commodities. and this IS due not
My 10 natural falling movement here
wing 70 the movement Of large farm
eserves 10 market and the prospects Of
ood crops in the coming harvests-pros-
ects that last week were distinctly i'm
roved-hut 20 similar large crop prom
es in other producing countries. Time
GEMS to be slowly but surely accom-
fishing an adjustment in the cost OF .
wing question the world around.
Political Discussion Next.
Political discussions will be q uarkat /
,ctor with us until the various State
glsIatures and the national Congress
iJourn their sessions, but even here /
-ere are indications that radical legis-
ton has been halted. and that the I /
resident OF the United States has made I
MS mind that ne does not propose to
tand' for the extreme legislation which
'cialsts and sectonalists in Congress
we sought 10 force upon his administra-
IN.
A new element in the general status
s. or course, been introduced by the
ath OF the King of England. The news
the Kings illness and the probability 4
AT this was Of mortal character was
own before the business hours began
Friday, both here and in London. and
course followed by the markets since
al time has seemingly indicated that
latever slight and temporary disturb
CO was given 10 values by the passinr
the King has already measured its fun
'ce.
Is well understood that an event OF -
$ kind always brings a temnorarv Il
m-paraiysis TO business in the country p,
ere II taxes place, but in the present
lance here Is no reason for thinking
i 'he usual course Of prompt recovery -
m such slight market depression as
occurred viii not be followed
great questions Of European noIitics
pressing. English finances are IN a w
'nger state than they have been ar this =
e ior years. and the King has been fol- an
Gu oy MS recognized successor. who. q,
loueh a younger man. has never given FIR
slightest sign that he does not fully -
'erStand the limitations Of his power
lhat ne VIII prove troublesome and
LreDerOug ~