The Washington herald., 1910-09-19

- tstA4 - JtoIo DdCk ana IAlleQ 10 md
time when the stock market advanced
as It did on Tuesday on the news OF a
Democratic victory. ne could have
delved into the records for q longer
period and failed 10 ind a time when
business and politics were more closely
inter-related, or at least, when the inu-
mats relation OF business and politics
was moro clearly cOmprehended by the
counlry's business men and finaneiers.
since the pronouneement OF the new ma
uonaiism, politics has assumed an i'm
pertanee in comparison with which other
factors are not greatly considered.
The country's crops are quite certain
to be bountiful. but the gratifying pro-
gress or the crops toward maturity has
been reflected very little if at ALL in
stock market operations or in general
business Money developments are en-
tirely satisfactory. but easy money has
entirely failed 20 stimulate speculation
in securities or new business enterprises.
II rs the trend of politics that is every
where considered of utmost Importance.
and IL is in accordance with the changes
in the political situation that the stock
market will probably swing when the
time comes that permits a reasonable
consensus as to the acceptance or re-
lection OF the new nationalism.
Little Change in Prices.
Stocks closed at about the same aver
age level as at the close OF the preceding
week and prices were very close to those
on the day after the new nationalism
was uttered. AS far as the stock market
reflected an opinion on the vogue OF the
new nationalism, II again showed either
an even division OF sentiment or more
probably a reluctance 10 undertake new
commitments until political prospects be-
come clearer.
II was remarked early last summer
that Wall street had detected cyelene
clouds and had run for the storm cellar.
The clouds then gave portent OF extraor-
binary damage TO he crops and of severe
monetary stringency. These fears were
dissipated. damage in wheat being more
than compensated by improvement in
other crops and money difficulties being
surmounted. But it IL fortunate that an
orderly liquidation and readjustment were
induced by the early apprehensions. for
they left the financial district OF the
city and country In g condition greatly
strengthened, and as II has turned out
up 10 the present abundantly able to
withstand the threat OF temporary dis
aster' prophesied by Col. Roosevelt in
his opening speech on the new nation
alism.
IN many departments or trade and In
dustry preparations had been made for a |
revival of business that is normal in the
late summer and early fall. Retailers,
jobbers. wholesale houses, and manufac-
turers were closely watching the devel-
opment OF the crops and the improving
conditions in money in order TO appraise
requirements of the fall, winter and
spring trade, and it is an important CO.
incidence that at Just about the time
when satisfactory assurance OF good crops
and easy money was o5tainable the new
nationalism broke out.
Hesitancy In Business.
The result is best told in the trade
papers OF last week. Said the Iron Age:
with some exceptions contracting for
far forward business will be avoided
for the present"
The other authoritative publication of
the iron and steel trade, the Iron Trade
Review, declared that there lis now little
life in the market, as business generally
Is inclined to await developments in /
the political world" Dun's weekly re-
view OF retail trade expressed the opln-
ton, based on advices from thousands
OF infOrmants, that the domestic COM
merce of the country is stu retarded
by the impairment OF confidence as a |
result OF the political uncertainties"
In the railroad business political de-
velopments emphasized even further the
desirability of policy of retrenchment |
Some satisfaction was derived from the
forceful and seemingly conclusive pres
entation of the case OF the Eastern rail-
roads in their applications for higher
rates. but Gov. Stubbs Of Kansas. called
a convention of Western governors and
mayors 10 devise plans for combating
Increases in rates in the West and West
ern insurgents acclaimed against the rail-
roads more loudly than ever since the
Granger movement Of the '70s The
natural result was that railroad economy
was practised as rigidly as in any other
week of the year.
Economy is necessary In many other
departments than In railroading if a. |
substantial readjustment OF unfavorable
factors is TO be brought about In the
FIRST eight months of 1908. when effects
OF the 1907 panic were grievously felt. |
the country's exports exceeded imports
by $Ssi. 100000. IN the first eight months
OF the current year imports exceeded
exports by about s.. O00.OOO, and the coun-
try was shown 10 have been a debtor
nation for the first time in any eorre-
spending period since 1885
Fewer LuxurIes Purchased.
Exports We're high in August, and 1t is
certain that the free outward movement |
in cotton and the current high prices for |
this staple. the somewhat lower prices
for grain and other commodities. AMI |
reductions in prices OF various manu- |
featured products will produce a better |
export showing in the remaining four |
months OF the year. But the years |
known balance OF trade can not be con. /
siderably in this countrys favor IN de- |
fault Of drastic curtailMent in expendi- /
lures for luxuries. In the last two |
months there have been many indications |
Of such curtailment, but the August /
trade reports failed TO confirm these IN
dicatlons, and il may be that such /
economy as must be generally practlcsd |
after every period of business reaction 1
will be more than normally delayed. In |
domestic trade current reports show
sharp and unusual contrast with foreign
trade figures. Both exports and imports
in August and exports and imports COM
bined were of greater value than ever
before in a corresponding month, but
bank clearipgs last week ware less h,, o. !