The Washington herald., 1910-07-04

New York. July AIT the end of the
first half of the calendar and fiscal year
the unpleasant fact obtrudes itself that
prices of stscks have in this period con-
tinuously and heavily declined. The fall
latterly has been more rapid than at
first. but it has been really carried on
from the beginning OF the year, and last
industrial shares were not only the low
est seen In 1910. but were at a range
lower than they have been at any time
since October, 1908.
Exchanges Diminishing.
II has continued with a movement only
broken by successive rallies. mostly due,
as now seems. to the retreat from time
10 time Of the market short interest.
II has been accompanied. too, by what
is now everywhere admitted TO be a
contraction in general business. Bank
exchanges are diminishing, and the plain
tendency of railroad earnings is for IN
creases in gross. to be counterbalanced
and more than counterbaianced by in
creased operating expenses. An obvious
fall is going on In commodity prices. and
there have been some reductions of div
idends by railway and industrial corpo-
rations
The general situation has been SUBJ
jected TO the shock of specific incidents,
such as the winter and spring wheat
crop scares, the Wickersham injunction
against the increase In railway freight
rates by the Eastern and Central lines.
and by the reduction IN the intermountain
and extreme Western freight rates by
the Interstate Commerce Commission;
but these particular matters do not ex-
/ plain the existence Of a general stream
Of downward tendency In the entire busi-
ness and financial world. To what is the
running OF this current due?
In the main two definite and widely
differing answers are now given TO this
question by the greater number of those
! who attempt TO answer 1t at all. and an
effort viii here be made TO set forth these
differing answers as fully and fairly as
can be. without, however. indorsing either
of them.
Politics Given as Cause.
There are those who assert that the
country's troubles are almost exclusively
of political nature They declare that
business has been depressed and financial
confidence unsettled by what is not mere
ly a seeming growth OF radical sentiment
in the country but disappearance of the
barriers that have hitherto been opposed
to the sweep OF these ideas in Congress
and the various State legislatures. Two
bye-elections held during the year TO fill
vacancies in the House OF Representa-
tives in districts that normally were
overwhelmingly Republican resulted In
choice of Democrats, and this was
taken as an indication not alone OF a
change OF popular sentiment on the tar
III question. but as proof that a great
reaction was in progress from old-time
conservative policies.
Since these elections the progressive
and ''insurgent" element has been in
control OF the Lower House Of Congress
and has even substantially dominated the
United states Senate. The railway rate
| bill. originally proposed by the admins
| tration. was so amended by this element
as TO make it much more radical and "a
carry measures of government restric.
ton and supervision Of railway interests
/ 10 a stage that even President Roosevelt
never suggested. The effect OF this bill
! is 20 reduce railway directors to the place
Of mere clerks and to put the government
/ in the position OF usurping all the powers
of railway management without incur
ring any Of its responsibilities Among
business men in the eastern part OF the
country especially, the allegation is loud
/ ~ made that so-called insurgency IN the
National Congress is only another name
1 for Western sectionslism. The people
OF the West have invested little Of their
money in the railroads that traverse their
| section and perform for them the most
valuable services