The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-03-28

The four days of Stock Exchange bush
ness last week. considered strictly IN and
by themselves. developed nothing of any
great interest. Particular weakness man
ifested itself in one or two groups OF
stocks. principally in the metal shares,
and the course OF the market as whole
became more or less ragged All this was
due beyond any question to a growing
feeling that the general financial and
business outlook was not as rosy as it
had been previously. There was plenty
that could be said in favor of the security
market.
Money was still easy, whatever appre-
tensions might be felt as to its course al
a later period. Business over the coun-
try. if spotted and irregular, was still
good in the main. and such considerations
as could be urged against values were
general in their nature rather than acute
or pressing. Such liquidation as occurred
therefore. was in no way urgent or vIo-
lent and in no quarter did there seem to
be serious anticipation that a great de-
cline was imminent
Transactions in stocks were almost en-
tirely professional. and the market proper
was really deserving OF little comment.
It was undeniable, on the other hand,
that the tendency OF affairs was again
such as to bring more emphaucally than
ever to the attention of people in the
financial district the fact that certain
great economic problems must he solved
or be obviously in the way of solution be-
fore there can be a solid and substantial
basis laid for a prolonged and permanent
advance in values.
1t will be conceded that the one occur
renee of interest last week of financial
bearing as the quite unexpected result
Of by-election held in prominent Con-
gTessionaI district i'm Massachusetts. where
Republican majority of l4250 at the
previous election was converted into a
Democratic majority of 500.
Significance of Election.
The light there was made squarely
upon the issue of high cost of living,
reciprocity with Canada, ard general dis
sits elton with the existing Payne-AId
rich tariff bill, The district in question
clusively given over 20 manufacturing
industries, and in which a demand for
free raw materials was more forcibly
expressed in the recent tariff discussion
than in any other quarter in the country.
The Upshot Of this election. following
upon an unmistakable sweep of Demo
Clatic victories IN town and city cleo
tioEs over the northern part Of the
country last week. and coupled with
other indlCia that are matters Of com
mon knowledge, was almost universally
taken in Wall street as an indication
that the tariff question was once more
likely 10 become a stock market factor,
and that there might be a Democratic
majority in the national House of Rep
resentatives TO be chosen this fall.
People in Wall street are Of all shades
of political belief. and likewise entertain
widely varying opinions upon tariff mat
ters- Consideration Of these topics from
ordinary economic and political points of
view are therefore beyond the scope Of a
financial article. Wall street is very
much interested. however. in the general
probability that a tariff debate that was
put 10 sleep. as was thought uenv
months ago is once more TO be revived
as topic in the likelihood. or seeming
likelihood, that the power in the popular
branch OF the national law making body
may pass from the hands Of the party
that has so long been in control there
and rest for considerable time 20 come
at tasI with the party in opposition.
Little Demand for Securities.
Last weeks sale of 100000 4l-4 per
cent city OF New York bonds went off as
satisfactorily as could have been eX-
pected, all things considered, but the
price obtained by the city for its bonds
was relatively away below that received
at the offering OF 4 per cents in Deem
Der and was such as to plainly suggest
GOODNESS and apathy in the current de-
mand for investment securities.
There is a consensus among those bav-
ing an opportunity to be well informed
that the inquiry for our railway and
municipal issues from Europe is nucb
less than it was; but a better Indication
than either of these is the fact that rora
than one large railway system and in
dustrial company has recently resorted
TO the expedient Of raising money hv
short-teTm note issues rather than bv the
sale Of long-term bonds Of the CUSTOMARY
sort
Whether by reason Of the high cost of
living or by the influence of whatever
other cause people are asking higher
return upon the securities bought h,,
them than they formerly did. and bond
and investment houses are finding this
out to their sorrow. AS regards the
money situation specifically. no very
great rise in rates seems to be antici-
pated in the near future, but a higher
trend for money is universally predicted
by bankers. We are still enormously IN
the debt of England and the continent
OF Europe through an adverse FOREIGN
trade balance which continually presses
down the financial scales against US
Up to the present time heavy exnort G
of gold 10 Europe have only been avoided
by the large buying of securities bv
Europeans earlier in the year and by the
fact that our creditors have not asked
owing to monetary ease in their own
countries. for the payment of our obIj-
cations. But the plain indications are
that this easy-going policy will no longer
be continued by England at least.
Couldn't Lose Him.