New-York tribune., 1910-09-11
ALLAWAY'S REVIEW

profit Optinists talk OF new interests
simists talk Of distressing circumstances
which make disaster sure. From neither
the one side nor the other comes any a.
sured Indication OF what Is going TO
come to pass. All is milky guesswork-
nothing pronounced, progressive. Ger
tain.
Under conditions Ike these prevailing
there might be expected active and az
gressive conflict between traders FOR tha
rise and traders for the faIl-but there
is no earnestness. no sensibility. upon
either side. Wall Street at present IL
passive-and not merely passive, but
numb
In exposition Of this unhappy situation
netting nothing to anybody-take the
Stock Exchange record OF the past week.
Day by day there has been almost a
standstil1 speculation. Within a list OF
half a dozen stocks there has been cir
cumscribed activity. One or two have
advanced. One or two have declined A
change OF as much as a whole point has
come to be regarded as extraordinary.
Somewhere there must be significance
in this And what Significance can there
be more than that the public Is not
merely continuing TO hold aloof. but has
the feeling that Wall Streets registered
quotations are quotations TO be lowered?
In q word. the public position seems to
be that if it chooses to buy stocks 1t VIII
be accommodated at lower prices. Il
NAV be that there is not reasOnabis
basis for this public estimation But
the public view seems TO be the view
which does not waver- If there Is TO De
public participation in the market-ir
there Is to be activity based upon new
public entrance into the security mar
ket-there must be disclosures OF dtT1-
dend productiveness beyond what as
present is anywhere evident
Tt is pleasing TO a group OF philo5o-
phers-speculattve philosophe--to pro-
claim that chilled activity presages an
end to Stock Exchange vitality. The ab-
surdity Of this appears az once upon re-
view of the national speculative field.
There is violent enthusiasm in the com
modify markets Grain, cotton. oil, all
show public participation in great vol
ume. Speculation there is as rampant
as ever; but II is not depIoying itself IN
Wall Street Doubtless one inportant
reason for this is the unintermittent dis
repute flung upon Wall Street By politi-
cal orators and sociaI-ecOnOmic writers
The Stock Exchange is made the scape-
goat of every evil thing which comes 20
the surface, but that there must be re-
vulsion from such empiricism is certain
for the Stock Exchange is and EUst
always be the final registrar Of business
and financial conditions
That there may be market quotation
declines is not merely possible, but prob g,
able during the coming week There
has been much loud talk Of an extended
short interest There is no such thing.
Immediately after the close Of the mar
ket yesterday the report Of the United
States Steel Corporation on untitled ton
mage appeared. 1t showed a decrease OF
433, sos tons. comparing with the same
period two months ago This is about
an IL Per cent decrease, which is not
surprising in view OF the general con-
traction in manufacturing business L:
is. indeed. d remarkably good exhibit
That through all the stress and storm
of recent times the business Of this pre-
mier corporation should show such slight
contraction Is cheering sign. Further
more, il is well known that the present
productive capacity of the corporations
plants has been brought to so high i
point OF physical excellence that upon
any turn in the tide, upon any sudden in
crease OF new orders. fresh business can
be instantly accommodated
Again is demonstrated the wise pOIic-
OF the Steel Corporation in dealing with
the public on 4 frank basis. Nothing IS
concealed nothing withheld Every III
vestor in Steel stocks has the same IL
formation at his command as the most
favored insider And to come 10 the
question Of current quotations fer Steel (
common-it is paying > per cent ant
earning q good deal more than tWies
that amount. Now, assuming that this
present reduction in orders should con
highly improb&bie-ii I.
is perfectly clear that there Is nos TO 3
slightest menace 10 the present dividend. T
Per contra, it is quite plain that II tts &
company thinks it wise SO TO 90 the ex-
ira distribution OF extra profits TO which
the corporation pledged itself when max
ing it's last dividend report is by 60
means an impToba hility in the near tut
Ure. Accepting the steel business IS
barOmetric the contraction revealed Il
Saturdays report actually IS of Uull-
pCrtant character If other lines ar
business are suffering no more than .
the steel business there IS no cause TO-
Worriment-nOthing more than ordinary
normal recession.
While the theorists ~ the Street are
hobnohGing and debating and diSputins
a To what the early future of the stock
market may be- there are considerations
pressing not to be ignored. Scrne 81
these considerations have to do with
sugge stions actually sensational
The 81. Paul Railroad figures rs one OK
these. st. Paul is paying dividends i
does not earn-as weeks ago was in TINS
review recorded St Paul stock is 'oo
high on any fair measurement. On tAS
disclosure of the deceit practised u
maintain it's present dividend St PSU
stock belongs ut a much lower figure l.
may not 30 down there now-tcr aSser+
IKE financial interests are loaded WIZ
the stock and can by their own inSls-'