The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1910-02-02
FRESH SHOCKS HIT
NEW YORK MARKET

fits based purely on monopoly can be
regarded as having va ne of perma-
nent stability Industrial monopolies
those based on patents excepted
are regarded as against public well
fare and will always be exposed to
popular attack; hence their undesira-
bility as investments.
The money market shows somewhat
easier tendencies. Funds are return
ing more freely from the interior, and
the surplus reserves are rising in con-
sequence. The situation abroad is al
so favorable in this respect, consider
able ease prevailing in London, Paris
| and Berlin. The great floods in
France, causing a loss estimated at
between $1O0,000,000 to $200,000,00O,
must have some effect in Paris, al
though the reconstruction work which
viii be required cannot make any sud-
| den demands upon the money market
France is financially strong and opti-
mistic, so that a disaster of this sort
will only exert a passing effect. Lon
| don is becoming more hopeful, and
! not improbable Europe is just now
/ exceptionally free of information fric-
tion The situation abroad, therefore,
is generally satisfactory from the fl
nancial 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
wildfire from the Atlantic to the Pa
cific, has an important political sig
nificance, inasmuch as the discomfort
which it implies unless checked may
easily be the occasion for a great deal
of radical and injurious legislation. AL
ready Investigations are being initial
ed that will furnish fresh material for
the agitator, and unless some means
are found to satisfy this discomfort it
may easily become a much more dis
turbing factor than has yet appeared.
If an investigation can be conducted
free of political animus, it may accom-
plish much good by provoking discus
sion and showing what are the real
reasons for present high prices. AS al
ready stated in these advices, high
prices are due to many and very COM
pick causes, and little relief can be ex-
pected from legislation. 1t is largely
an economic movement, and one that
with time and patience will work out
it's own solution far better than
through any legislative meddling.
While there are reasons for unset
Element as noted above, the fact should
not be forgotten that the better class
of stocks have now reached a point
where they are sure to attract the att
tention of investors. With a decline
of 10 to 80 points in many of the best
issues, it is evident that their invest
ment qualities are much better than
ing picked up by shrewd buyers for
permanent holding, and should the de-
cline go much further it will be found
that the floating supply of securities
has been materially diminished. Stocks
have gone from weak into stronger
hands in considerable volume, and the
possibility of the bears meeting with
further success on the decline is con-
stantly diminishing. Fundamentally,
poets are that before midsummer the
market will reach "a considerable high
er level than the present one While
the present tone of uneasiness con-
tinues it is not impossible that still
liver prices may be reached, but the
better class of stocks can be consid
cred as a purchase upon all pro-
nounced breaks, for the market is
near bedrock figures and any impor-
tant decline is sure to bring out strong
buying.
The bond situation is not satisfac-
tory owing to lack of buyers. but this
may be partly due to the fact that al
present level stocks are more attrac-
tive. A number of new issues are
still held back awaiting more favor
able financial conditions. and nothing
is likely to assist more in this res
pect than the recent severe decline
Secretary MacVeaghs bond t-tX FRO
posal is not likel yto command gencr
al approval. 1t is at best an eXpe1i-
ent and not a cure. Short term OBJ
igations until currency reform is pos
sible and no harm would 90; oW tn.
government paying better rates for
money lust as other borrowers have