New-York tribune., 1910-07-24
ALLAWAY'S REVIEW

Wall Street zealously tries TO be cheers
fuI. reaching after even remotest crumbs
of comfort, but net market results per-
sistentIy present encouragement. 1t is
not that anything specifically bad Is
looming. The Stock Exchange situation
Is disappointing, rather than disquieting.
One handicap that harasses appears in
the fashion to proclaim that everything
is all right throughout the entire specu-
Iative world that investors have no war;
rant for calculating, that crop damage is
insignificant. that Industrial quiet Is
really helpful, that everything financial
is agreeable. These assurances are pos
sihly well intentioned- It Is hoped thus
to cure stocks of their droops- But the
effect is not what is Sought-quotations
for standard issues go day by day below
the wears low levels Despite all the
chori1ses. Christian Science acclimate5 a
trffe slowly down in the puTlleus Of
Wall Street. IL requires something more
than saving so to make bull market.
II is no longer disputed anywhere that
general business slackens- Trade re-
norris are now agreeing In this uniformly.
Two or three months ago forecast TO this
effect In this review met aggressive dis
mutation. Uncomplimentary comment,
even epithets. branded the statement that
industrial signs were pointing toward re-
str,ction. Yet to-day's official exhibit
makes NV prediction of May look mild.
Take the New England condition-and
business caution and preparedness are
at their maximum there: cotton mills are
shutting down, silk mills are shutting
down. woollen mills are shutting down
and those that closed their doors "for
week" at the end of June are now off,
ciaIly hoping that they may be able to
start I'D again some time in August
Trade record like this is not inspiriting.
What is worst is not that output has to
be restricted. that labor has TO be thrown
out of employment, that normal earnings
are interfered with-the aggressively in
truding factor, the record from which
there can be no appeal, crystallizes into
confession that they who are the man.
ayers of our foremost corporations can
be deceived concerning their own busi-
nesses; or else that they are Wiling 70
hermit others outsiders, investors, 70 be
deceived. From every standpoint status
like this is bad But it's real; not only
does il exist but in too many ways and
in too many quarters IL dominates
Though popular, there Is expenslveness
in capitalizing insincerity. III the cur
rent trade situation is discomforting, why
equivocate?
BY way of attesting what current con-
ditions are take the bank clear1ngs OF
the 100000 this week below
what they were a week ago Bank clear
ing figures are not myths or theories or
anything else than actual business re-
Election.
And the exhibit of the national banks
of the country registered this week pro-
vides coincident, If unpleasing, testimony.
Loans are s304, 100000 larger than they
were a year ago, and between the ma
tional banks of the country there are
$50. 100000 "rediscounts," more than
twice what that incongruous item repre-
sented this time last year-giving perth
nence and force to the comment that
loans are in control OF the banks. rather
than the banks in control Of their loans
It is not needful, 1t might be construed
as unnaturally antagonistic, TO pursue
the line of banking argument-for they
who manage the banks of Wall Street 1t
may be taken for a certainty, are not
inimical to buoyant market values. They
are pursuing conservative courses-they
apprehend no early crises They have
through recent months witnessed a hqui-
dation almost unprecedented And in
large majority doubtless our local bank
S1ea-J hot
possible is already largely on the record
Thus an expression of opinion by the
average New York bank of to-day is
likely to be an optimistic expression
that any probable financial change must
be change for the better.
1t is to be borne in mind that Hquida-
ton which has been going on and is now
going on is not the liquidation Of the
petty margined speculatOr. but represent
the disposal of actual holdings of invest
ors whose confidence in the financial
situati ton has suffered severe shock. How
far this may yet run is the important
question from the Wall Street point OF
view. Closing prices for the week clearly
reflect continuance of nervousness.
Among the financial events of the week
that having most Stock Exchange atten-
ton is the Lead Trusts dividend reduc-
tion. the per cent rate made 8 per cent
Forthwith the price OF Lead stock
shrinks over 20 points There is much
ejaculatory condemnation From every
quarter has come criticism. Yet-just
merely measuring facts-Jhere was only
one other thing that the Lead Trust di-
rectors could do. Instead of reducing the
o per cent dividend to a 3 per cent rate
they could have cut it off altogether. and
even upon that basis they could be justi-
fed They are paying now all they earn
And it's on the basis of earnings that
the Lead Trust directors say they are
acting. All the facts, all the figures. are
on the conserva tive side. To have con-
tinued "a 8 per cent. rate would have in
volved fiscal misrepresentation. Ii IS
just straightforward business sense that
the Lead Company accepts in paying
what IL earns rather than what IL used
to earn, or what in the future it may
hope to earn
Some speculative hurrah has been
made over the fact that the ffnanciers who
directed the Lead dividend reduction are
controllers of the Smelling Trust and
engaged in warfare with the Copper
Trust Sensible consideration of facts
Will not ignore pOSSihiIitiaS thus suggest