The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1910-03-08
NEW YORK MARKET.

Henry Clews. in his weekly letter on
New York market conditions, says:
1t is source of qualification to
once more be able to take a more cheer
full view of the broad financial out
look. Fluctuations in prices of securi-
ties from day to day may, it is true, 1
still continue erratic; accidents may
still happen; but there are distinct in
dications that the storm is clearing.
Indeed, the weight of uncertainty and
dread has already measurably iightened
and the more general disposition in
usually conservative circles now is to
appraise the controlling factors of the
security market in u calm, a sane man.
ner.
This does not mean that the funda-
mental situation itself has suddenly
changed. The real change is tempera-
mental, affecting chiefly the popular in
depreciation of the situation. Threat
ened legislation, having been the pre-
text for numerous concerted drives
against highly nervous market, is
now being appraised at its real value;
and it is found that apprehensions
have had slight tangible basis. The
real influence behind the. recent rapid
and serious break in the stock market
was the fact that important interests
/ had forced the price level up to q
point not justied by dividend returns,
either present. or in prospect fact
that was well known to these interests.
Amidst artificial enthusiasm they were
successful in distributing large part
of their securities among weaker hold
ers, who have since been compelled to
take pretty severe losses, which they
should charge off to experience account
and profit thereby; their enforced
| liquidation created situation that at
times fell little short of decentralization.
Having sold out at high prices these
large market interests were not averse
to taking the double advantage Of
profits on short commitments and Of
repurchasing their supplies of securi-
ties at the resultant declines, extend
ing in the instances of some standard
| stocks 90 to 30 points from the high
prices reached. Thereupon the fear Of
| adverse legislation became OPPORTUNITY
| unsettling and was insidiously encour-
aged to take responsibility for the de-
moralized conditions, being ably Sec
onded by equally distorted views Of
the disorder to result in the event Of
the Supreme Court sustaining the lower
courts by declaring the Standard Oil
and American Tobacco companies IL
| legal combinations on the ground that
they restrain trade. The absurdity Of
/ this undue anxiety has already been
Indicated in these advices. 1t is worth
while, however, to once more look the
Legislative situation frankly in the
face, beginning with the administra-
TONS proposed new laws. Best infor-
nation from Washington is that
neither the administration g railroad
regulation bill nor the federal incor-
poration bill will be enacted at this
session. The object of their introduce
ton has been to subject them to the
crucial test Of public discussion and
criticism by which their unwise or
dangerous features may BIO exposed and
eliminated before tthey are placed
! upon the statute books. IL is a safe
assertion that when the administra-
ton + measures are finally enacted tkey
will spell increased value and solidty
for the higher class of securities that
are traded in on the New York Stock
Exchange President Taft = federal
incorporation bill viii, in my opinion,
be AS drasticnlly changed Ia It's pro-
visions before 1t gets through congress
rs II II drastic 10 It's original form,
and when the sting Is erRdleated 1t
will be perfectly harmless 10 the stock
market, but beneficial 10 the securities
dealt In al the New York Stock tx,