The Washington times., 1910-10-16


persons there seemed an air Of unre-
ality about the weeks performance in
Wall Street.
On all sides one heard the comment
that stocks were improving without any
| news to explain the advance, all Of
which is true. in part, but IL has been
| made so clearly apparent in recent
weeks that liquidation had run its
course, and that stocks would not
| decline on bad news, that a movement
in the other direction even though the
horizons are still obscure, does not APP
pear illogical to persons familiar with
the vagaTies OF speculative markets.
That the general security list received
| inspiration from some influential quar-
: tiers cannot be doubted. There was no
mistaking this in the increased activity.
the distinctly strong undertone. and the
| broadening tendency, but commission
| houses complained Of the dullness Of
| business. and the meagernes of pubic
participation In the market and the ma
| Jority of persons inclined 10 the belief
that the advancing tendency was large
ly the result OF short covering, the out
come of a well planned and admirably
executed professional movement
Permanently of improvement
OF course. the question which chiefly
interests the rank and file in the Street,
assuming that its diagnosis is correct,
| concerns the permanency of the i'm
provement. VIII movement apparent
| " professional in its inception, and de-
pending for support unon short cover iug,
merge into broad public market? Upon
| -, ~ =
! There is no question that the technical
position Is strong. and that the long
| period of inactivity and low prices has
| resulted. as It always does, in an alb
/ sorption OF stock by strong interests,
/ who would not be averse 10 seeing
higher prices. provided that can be ac-
! compIished without compncaung affairs
| In the money market
That the market bears unmistakable
evidences Of manipulation at this stage,
| does not IN the slightest concern the
main proposition Stocks will not move
/ Of themselves. and all speculative bull
! campaigns owe their inception 70 a
| certain amount Of professional effort.
| The continuance Of the movements de-
| penis upon other thlngs-the attitude OF
/ the public. the tirneliness OF the move
nnent, general conditions and the posi-
! BILE course Of future events, and Of
| course, the money market. II used to
be held that two conditions were essen
tial for the maintenance of bull move
/ ment-abundant supplies OF money AZ
| low rates and confidence. Whether
Wal STREET possesses either OF these re-
! QUirements 10 a degree sufficient 70
long sustain q bull market r. the ques-
ton to be determined.
Some Aversed Troubles.
Confidence is a plant of slow growth
II has been rather seriously disturbed Of
late. but UnQuestionaby sentiment Is
improving. For one thing, few IL any
/ OF the disasters which were predicted
for the security market last spring have
Z materialized. To be sure, the operation
Of some factors, such as the determine
ton Of freight rate advances, the out
come If the industrial trust cases, and
the ike. have been reiegated to the
remote future, but fears OF acute none
7 tary stringency and Of possible panic or
crisis have passed away, the harvests
are sEured, and they are abundant. and
/ all fear of trouble arising out OF the
( political situation seems to have spent
l its force
auQlLl0n
have gone bankrupt, a catastrophe
[ which leading officials freely predicted
I n freight rates were not advanced, and
[ no very important railway or indus
trial corporation has omitted or reduced
its dividends. which also was freely
( predicted.
Increased operating cost has. 20 be
I sure. reduced net railway earnings. but
gross earnings are well sustained, show
! ing, as a rule, increases as compared
~. - 81
dant crop give assurance of sustained
general business, and sustained traffic
receipts. Even If the volume Of general
I business be not as great as in soEle
/ other years. there is surely nothing in
the fundamental situation which be
tokens disaster.
Crops and Future Problems.
There are problems in the future,
| many problems, and some of them are
| vexatious enough, but surely many
/ things which seemed porteutous last
1 spring have failed to materiallze, and
when one recalls them II appears clear
that Wall Street is in error when Il
says prices are improving without any
| thing to explain the advances
There is much to explain the recovery;
much that affords a basis for encour-
agement and that serves as a founda-
ton upon which professional market
! builders may lay the first courses of a
/ speculative structure. An advance in
prices works marvelS in the Way OF
Wall Street sentiment. and IL Is by that
process that confidence returns to a
security market. There is an axiom in
Wall Street which bluntly expressed has
ii IF you want stocks UP. you've got to
buy EN-" That appears to be the
genesis Of the present movements
campaign to change sentiment and re-
! store confidence BY advancing prices.
Neither the Government crop report
for October or the statement Of agTi-
cultural exports for September figured
to any extent I'm Wall Streets discus
sion OF the week stock market: in fact,
as already stated, NEWS developments
were not cited in connection with the
both developments p'ere Of primary i'm
portance- The CROP showing was dis
Itinctly favorable, particularly as TO corn,
Z which showed an Improvement OF p per
cent in September, thus adding in one
imonth more than 100000 bushels to
1.-THE years harvests. The indicated
yield Of corn, 3,O46,W6OO0 bushels is
much the largest in the countTys entire
history. So is the yield of oats,
], 096, OO0. 900 bushels. while the combined
yield Of spring and winter wheat. 691.-
$4,000 bushels, converts that crop,
which only few weeks ago was report
ed as ruined beyond repair, into the
third largest in ten years.
Commodity Exports Larger.
In fact there is no serious shortage