The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-03-07

New York. March 6-It was very plain
throughout last week that the strong.
instructive desire Of Wall street was TO
look at matters a good deal more opti-
misticaIIy than it recently has been do
ing. 1t developed. moreover, that sim
liar temper was manifesting itself in
London and in nearly all the great inter-
national financial centers. Scare talk
was petering out For six months or
more the security markets have been
declining here and in Europe on fears
and apprehensions. which, however log
zeal and entertained by conservative and
thoughtful people. were still continually
unrealized.
Both the friends and opponents of free
trade in Great Britain have respectively
been filling the air with their predictions
OF dire results to the business of the
country If the policy urged by either
side was decided upon. and all classes
IN England have been for months under
q species OF midnight alarm over the
prospect of a German invasion.
English financial markets are assuming
a more cheerful aspect than they have
for year back and in all the foreign
markets. especially in England. there is
at present great demand for American
bonds and investment securities.
In our own land there is a dawning
discovery, after five months of a declin-
ing stock market that business is in
pretty good shape after all. large
batch of yearly, monthly, and weekly re-
ports OF railroad earnings came to hand
last week, which were Of such distinctly
encouraging tenor that their favorable
import could not be denied in any quar-
ter
Decrease at Less Ratio.
The character OF some of these state
ments was unexpected, because the gen
eral impression had been that the storms
and weather adversities through the
month of January would serve to de-
crease railway revenues for this month
even more than they did in December,
when similar conditions prevailed. But
In general. although increases in railway
net earnings for January were still con-
siderably less than the increases shown
in gross. yet the ratio OF decrease was
less than it was in December.
There were numerous evidences, TOO.
as to the sound, satisfactory. and profit
able state Of business affairs in the mass.
II is admitted that there has been some
thing of a lull in business since the first
of the year. but this let-up has been con-
siderable in no quarter, and now the
signs are that business is again picking
ri Ra
companies. the managers OF these con-
zcerns are once more coming into the mar
set IN really large way for equipment
nd new materials. and in every place in |
Fhe railroad world where people speak
With authority it is said that II the un- |
Certainly were out Of the way Of a def /
mite construction of the antitrust law the |
volume Of these railway orders would be |
greater than ever known before in the
|country's history
From this the deduction is not at all un-
Reasonable. and the speculative world was
quick 10 make it that, If actual. under !
Tying busiaess conditions really are of
sfhis nature. all the probabilities favor the |
S act that they will sooner or later assert
4 themselves, doubt as to the Sherman law
Notwithstanding. Moreover. from the
CLOSE point Of view Of the stock market
he impression made by continual dis
1 losures of the liquidated and sold-out /
condition Of the market is beginning TO |
exert its usual influence
Commission Houses Run Light.
The universal report was that commits |
sion houses were carrying comparatively |
few stocks, and II was a matter OF COM
mon observation that the great bulk of |
professional operators and traders were
bearish.' II almost invariably happens /
IN such occasions that the technical con-
dition OF the stock market, as proved nv
the event 10 be much stronger than was
popularity supposed.
decline In the market that has run
Tor months, and has been caused not by
unsound business condi-
lions. but by the crumbling of mere ton
heavy speculation. almost always runs 10
6 great lengths as did the previous ad-
vance, so that when the recovery SETS in
II, in its turn, displays more vitality than
lie majority of financial observers usu-
" calculated upon.
What especially gave TO the security
q -rket firmer undertone last week than
las been shown at any time since the
hrst OF January was the disclosure OF a
decided scarcity Of stocks. and ALI this
was emphasized by direct statements as
10 the increase in the number OF share
FOLDERS Of the leading railway and in
llustrial companies in this period.
OF course, at the higher levels touched
in Thursday realizing sales made their
3 appearance; but all through the week
sfore this time. and. for that matter for
/ ne last fortnight, the daily DEVELOPMENT
Il the market was that stocks "cama
ut" with reluctance. No one seemed
axious TO sell stocks. new railway bond
sues as they are brought out were
s. gerly absorbed, and it began to Iool,
. ~ much as If the market had really