New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-07-03
ALLAWAY'S REVIEW


snecial stocks have had especially bad
breaks. In some quarters hquidarion has
nressed In volume. But In few instances
has this been other than orderly. though
.bosa who are among the very adroitsst
NJ Stock Exchange operators nave con-
trfbuted short selling activity. Not ths
rnanfnuIator or the bear trader has been
tho rorcefui eIsrnent-the Influence os
chief consequence. continuing almost IN
rsrnittingly, has had directly to DO WITH
the sales Of investment hoIdin8s Tor
there has been throughout the week
vivid verffcation Of what n this review
was weeks ago forecast-the sweep OF 40
actual wave Of Hquidatton-Whose mere
suggestion then was IN some quarte-s
criticised with bitterness.
In the snoothness Of this liquidation.
mounting beyond yet possible eo1nDre-
hengion, dominates the mastery OF Wan
Streets premier market Haker-James
r. Keene-
One curious phase OF the Wall Street.
nature comes upon parade whenever
such speculative reyulsions az the pres
emit are disturbing. Perhaps It Is IN
dicatfve OF tender natUre-perhaps It
is Just numb foolishness-but the Stock
Exchange ever In such crisis is besoughs
TO affect a calm certainty that a panacea
for everything IS right az hand This
Is easier than accepting the issues, fac
ing the facts, but what II accOmplishss
does not one thing except TO add e.
fectiveness to bear campaigning Over
and over again IN recent disturbing
weeks the milk sopping policy has come
ambling In There was no reason 70
worry, nothing was really bad every
than ever.
Now, twaddIe ought not to have
market value Yet IL Is TO be recorded
as If IN the minutes Of sanitar1un-
that such palaver has been actually q
conspicuous market element
Thus. for a long time past. It has been
the Wall Street fashion to discredit any
record which might seem TO include dis
turbing elements. It has been popular
to hail every qualifying news item as a
speculative canard- In multitude, OF
course. Wall Street is overrun with false
hoods bred for stock jobbery attack; but
there can be no excuse for thus classify
ing evident facts; and penalties ara
right now being paid for that mistaken
policy.
When early in the crop season there
came from ordinary news sources inror-
nation Of drouth and damage to spring
wheat there went up at once the Wall
Street chorus OF dispute First the re-
ports were false wholly, then they were
exaggerated, then If damage was extern
sive It could be entirely repaired b. re-
planting. At last. what? The actual
record worse than originally forecast.
It being disclosed that Western fnan-
ciaI conditions were strained, the same
denunciatory chorus sounded. First the
tale was false; It had stock juggling
motives, and Western bankers were false
witnesses Now what? The facts as
originally stated were mildly stated.
When in Washington il became evi-
dent to everybody outside OF Wall Street
that the railroads would have TO aban-
don arbitrary policies and make rate ad-
vances. il at all. only by governmental
approval, Wall Street chOrUsed that the
railroads could do Just as they pleased,
just as they always had The present
exhibit Is whst7 Not merely surrender,
but nneekness upon the part OF man
ayers" who were chief among qUOndam
fire eaters.
Such instances are merely illustrative.
There have been many more like them
having to do, for example, with the
ia Ied European market for new Amer1-
can issues; with the announced placing
of bonds in large blocks which are now
found still In first hands, pledged. not
sold; with a general trade recession
every day from virtually every Wall
Street quarter proclaimed not merely
untrue but impossible,
Very largely by reason OF It's Cradl-
tionaI ostrichism, hiding its head in the
sand. Wall Street finds its present LOT
apparently much worse than IL really is
Some important crops are damaged Sc
riousIy. Talk OF national disaster is bur
petty pretence and is ridiculous. In net
dollars and cents corn prospects are bet
tered more than spring wheat has been
hurt.
The Western farmer. despite auIonO-
bile extravagances and real estate wild
eating, is far from being in desperate
straits-what is worst IN his expanded
situation IS that instead OF making good
the boast OF moving his own crops this
fall, the East will again have to be de-
pended upon for financial assistance
just as always.
And as TO the railway status, the ult1-
mate outcome Of recent legislation and
current judicial determinations all tend
toward the making OF stability. ths
elimination OF traffic Determinations. en-
forcing railway standards OF intelligence
and fairness. This doesn't asSall capital
does not put investments at risS-aS this
very week has been certified in TWO md
ings by the Interstate Commerce Com
mission, one an annulment or unfair
high rates in the West. one the advances
OF rates unfairly low in the East.
To the extent which exorbitant rates
may have induced high dividend dis
bursements. there must. OF course, bs
an accounting which will finally ind dis
coura ging reflection IN market values
II Union Pacific pays 10 per cent through
imposing upon shippers. and the shippers
are no longer 10 be imposed upon. the 10.
per cent dividend may be expected Ittls
longer TO linger. It is unfortunate that
Union Pacific is not IN q class by Itself
Dividend poIicies-suddenly lsvish-have
In too many instances seemed indeed to