New-York tribune., 1910-01-16
ALLAWAY'S REVIEW

| III the security market. Cause IS No.
hard TO find. geration-distortion
OF the Rock Island incident was seizAs
! upon as producer OF nervousness T,
listen to Wall Street talk and TO read
the columns of vicious Misrepresentation
printed about this matter 1t might ba
| supposed that IL had struck blow A
the very foundation OF all values. Il,
fact. IL vas simply a speculative opera
tion which chiefly hurt those vino con-
Quoted IT, and. perhaps. some scattered
| short interest that ran 20 cover IN ths
brief ten minutes during which the furry
existed The public was not injured.
And the action of the Stock Exchange in
disciplining the important house which
supervised the operation on the floor, 50
far from being a cause of apprehension
Is really emphatic notification that tina
New York Stock Exchange stands for
and will enforce rectitude In the dealing.
OF its members. OF course, much has
been said ands written about the incident
purely for market effect.
Another potent weapon in the bear
arsenal is the sentiment cultivated thar
Washington is storm centre. II nat
actions President Taft Ia clearly revealed
as the judicious. well poised Chief Masis-
trate--it matters not that any and sn
legislation proposed aims at elevating
ths standard of business dsalings-fs
matters not that none can suffer save
those who strive to wrong the public
professional Wall Street insists and in
sists that Washington is to deal some
mysterious deadly blow at prosperity.
Such conclusion is simply absurd Mean
while not a trace of any such apprehen-
sion is perceptible IN the great banking
circles. where progressive plans movs
calmly to eonsummation-
That prosperity is still with US and ex-
panding finds signal testimony in the sc-
ton just taken by the international
Harvester Company. which declares
stock dividend OF S2o.oOoooo. increasing
the outstanding common stock % $50
oCO, ,OO0-such dividend being an actual
bonus 20 common stockholders. rerre-
senting the surplus invested in the bust
ness for the last seven years. And upon
this SSOOO0oD a yearly dividend Of
per cent is set aside out OF last years
n,ents OF 1 per cent, beginning nexs
April This is indeed gratifying evidence
Of the splendid character Of trusteeshio
dominant in corporation mana cement.
It also testihes to the patient conddence
Of the American stockholder. who in this
particular case now reaps rich reward.
And vet il Is the fashion 70 rail az Amer
ican industrial interpretations as engines
of fraud and evil. Every little pecca-
dillo which comes to the surfacs is mag
nifed thousand times. while the good
accomplished meets with seant notice. II
is easier to eriticise than 10 appreciate.
Incidentally. this Harvester action was
forecast in this review months ago. And
similar action irnpends in other conrs-
MES which have risen from panic de-
preston to prosperity heights
At the weekend curtaiIrnent Of Eng
lish trading in our market was notice
abIe--due to the Parliamentary elections
now going on It is a safe prediction
that whichever party wins British com
merce and finance will ind the way to
adjust themselves to tbs conditions cre-
ated. Just as in our OWE country. each
party during a campaign sees nothing
but ruin If the other party wins. so IN
England large allowance must be made
for the exaggeration of stump speakers
In England, as here, the country wakes
up after the elections are over 10 find
itself moving along the usual grooves.
There Is no threat to Wall Street from
British politics. Cn the contrary. should
election results induce any nervousness
on the part OF English capitalists II
would be likely to start a food OF Eng
Gsh investment in our high priced Sacuri-
ties.
Thus. predonainating adverse market
influences are Ssan 10 be largely sent,-
mental-potential in immediate fuctua-
tions, but necessarily ephemeral For
beyond the shadow OF a doubt there is
no destruetien-no inpairmsnt-of the
great underlying fact which in hnality
must command security market rssponss.
1t may be idle for the moment 70 once
more call attention TO the superb crop
situation, the leaps and bounds ot IN
dustrial growth. the Widespread quicken
ing of general business. but these great
facts exist and cannot be whistlsd down
the wind by professional bear enthGsl-
asm. Effect must follow cause. Net al
the short selling in the world. not aA
the frightened liquidation which r1sy q
induced can subtract one actual dollar