The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1910-02-19
LETTER
Of HENRY CLEWS

NEW YORK, Feb. 5, 191O-Circnm-
stances combined to further unsettle
the stock market during the past
week. In the first place it was very
evident that the big holders of secur1-
les and prominent banking interests
had withdrawn their support from the
market This left prices at the mercy
of every passing unfavorable current
The suspension of a prominent bond
house spread unnecessary lack of con-
fidence. A series of unfavorable rail-
road reports came out such as might
have been expected in view of recent
interruptions to traffic by bad wea-
Their The anti-corporation agitation
at Washington and an exaggerated fear
Iof unfavorable supreme court decisions
also tended to weaken confidence.
Still another disturbing element was
the effect upon general business OF
continued agitation throughout the
country against high prices Even
the floods in Paris were used as a
bear argument. although that catas-
trophe can have but slight indirect
influence in this market. The bear
party however, was in the ascendant,
and encouraged by recent successes,
used every possible argument to de-
! 1ttag q, for nc tAncCin1p
The general situation remains fund
amentally the same 1t is doubtful il
any very injurious legislation will be
passed by the present session of Con-
gress. The issues there are so many
and so complex as to Illustrate preci-
pitate action. President Taft's poll
cies are not likely to go through with
out much resistance and comfortable
modification. The Supreme Court de-
cisions are still some distance away,
and if experience based upon previous
cases is of any value, the action of
that august body is not likely to be
drastic or ruinous. When the time
arrives for these decisions it will be
no surprise if their effect is not found
to have been fully discounted, as was
the experience in the famous North
ern securities case. At least they will
put an end to paralyzing doubts.
When it comes to the technical posi-
ton of the stock market that, too, is
generally sound Securities as a rule
are now we'll under control, and there
are fewer weak speculative accounts
in the market than usual. Moreover,
stocks in the last few days have drift
ed into stronger hands, and the indi-
cations are that the market leaders
are quietly absorbing good securities
whenever offered at a sacrifice. Add
ed to this there has been a fair in.
vestment demand for small lots of the
better grade stocks, which will soon
be found to have strengthened the
foundation of the market.
So far as the condition of general
business is concerned the agitation
against high prices is unquestonably
having its effect. The outBurst of pop
ular clamor is being felt by the poll
without having some effect upon flu
ture legislation, especially concerning
tariff and trusts. In some instances
commodity prices have already yield
ed, and in the public mind the spirit of
economy is taking the place of the
spirit of extravaganza which has ruled
already feeling this new tendency in a
marked degree, and are consequently
buying with much more caution than
for many months past. This hesitancy
on the part of retailers is naturally re-
flected in the wholesale markets, and
in both the textile and grocery trades
there is spirit of conservatism which
is in marked contrast with the feeling
of a month ago. This is not harmful
and will ultimately prove beneficial.
There is no doubt that halt was ne
cessary in the upward movement of
commodities. The consumer had al
ready been pushed to the point of ex-
haustion and discomfort was spread
ing, threatening a widespread labor
agitation. The latter is still dis
turbing possibility and will continue
to be so for some time to come. In
all probability the differences be-
tween labor and employers will be set
tied by lower prices for many staples,
: which will diminish the cost of liv-
ing, and by moderate concessions in
the matter of wages. The index fig
ures for January should show de-
crease, since many articles have de-
oIinad in Drioa during the naSt month