The Birmingham age-herald., 1910-02-14
More Cheerful View

More Cheerful View
 Henry Clews in his Saturdays review of Wall street says in party:
 It is a source of gratihcation to once more be able to take q more cheerful view of the broad financial outlook. Fluc- tuations in prices of securities from day to day may, it is true, still continue err ratio; accidents may still happen; but there are distinct indications that the storm is clearing. Indeed, the weight of uncertainty and dread has already meas urably frightened and the more general disposition in usually conservative circles now is to appraise the controlling fac- tors of the security market in a calm, a sane, manner.
 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. Threatened legislation, having been the pretext for numerous concerted drives against a highly nervous market, is now being ap- praised at its real value; and it is found that apprehensions have had slight tan gible basis. The real influence behind the recent rapid and serious break in the stock market was the fact that impor- tant interests had forced the price level up to a point not justified by dividend returns, either present or in prospect-a fact that was well known to these in- terests. Amidst artificial enthusiasm they were successful in distributing large part of their securities among weaker holders, who have since been compelled to take pretty severe losses, which they should charge off to experience account and profit thereby; their enforced liquida- ton created a situation that at times fell little short of demoralization.
 Ut is a safe assertion that when the administration measures are finally en- acted they will spell increased value and solidity for the higher class of securities that are traded in on the New York stock exchange. President Taft's federal incorporation bill will, in my opinion. be as drastically changed in its prov- sions before it gets through Congress as it is drastic in it's original form. and when the sting is eradicated it will be perfectly harmless to the stock market, but beneficial to the securities dealt in at the New York stock exchange.
 And we are justified also in taking an equally broad and liberal view of the re- suit of the litigation soon to be finally decided by the supreme court of the United States. What will be the net rS suit if the decisions of the lower courts are sustained? What will be the "worstN if the Standard oil company and the American Tobacco company are informed they have been operating on illegal lines? We already have the answers in the decision of the Northern Securities case, in which the court merely required the affairs must be put In proper legal or der; property was not confiscated and stockholders were not in any important degree losers. Affairs were quickly ad- justed in legal way and tho roads con tinued to do business and make money for their many owners. There is no log ical reason to expect a different result in the cases now pending, even If, as already noted, the worst happens. On the other hand, these approaching deci- SlODS VIII dHN tNCht iidNc tiic SOibpSi- satory benefits that they will provide an interpretation by the highest tribunal of the land on the highly controversial ques- ton of what the Sherman antitrust law does in fact forbid. When the decisions that, as alleged, have been causing such nervousness are finally rendered, other corporations will in any event know whether they are controverting the law, and if so will have ample opportunity in an orderly manner to effect necessary organization that shall be perfectly legal. The ultimate result of all this agitation cannot fail to rebound to the soundness of securities as investments.'