The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-03-28
rHE FINANCIAL SITUATION.

ness last week. considered strictly IN and
by themselves. developed nothing OF any
great interest. Prices Of securities were
firm and almost strong In the fore part
of tho week. but were distinctly inclined
to heavinsss later. Particular weakness
manifested itself In one or two grOups
81 stocks. principally In the metal shares.
and the course ol the market a. . whole
became more or leas ragged. All this
was duo beyond any question 70 a grow
ing feeling that tho general financial and
business outlook was not a. rosy a. u
had been previously. There was plenty
that could be said in favor Of the security
market. Money was still easy. whatever
apprehensions might 10 felt a. to In
coursO ut a later period. Business over
the country IL spotted and irregular was
still good in the main. and such oonsider-
atoms as could be urged against values
were general in their nature rather than
acute or pressing such liquidation as
occurred was in no way urgent or violent.
and IA no quarter did there seem 20 be
serious anticipation that q great decline
was imminent Transactions In stocks
were almost entirely professional and the
market proper was really deserving Of
little comment. II was undeniable. on
tho other hand. that the tendency Of
Affairs was again such - to bring more
emphaiically than ever TO the attention
IL people in the financial district the
fact that certain great economic problems
must 10 solved or 10 obviously in the way
Of solution before there can be n sold and
substantial basis laid for a prolonged and
in hSa
conceded that the ono occurrence % inter-
est last week Of financial bearing was the
quite unexpected RESULT of an election
held in a prominent Congress district
in Massachusetts,, where a Republican
majority 81 i4.2SO at the previous election
was converted into a Democratic majority
~ SOD The fight there was made
squarely upon the issue % high cost OF
living. reciprocity with Canada and gen
eTal dissatisfaction with the existing
Payne Aldrich tariff bill. The district In
question il one in which business IL al
most exclusively given over 20 manu-
featuring industries and In which a de-
mand for free raw materials was more
forcibly expressed in the recent tariff
discussion than in any other quarter in
the country. The result II this election.
following upon an unmistakable sweep
Of Democratic victories in town and city
elections over the northern part Of the
country last week and coupled with other
indicia that are matters Of common
knowledge. was almost universally taken
in Wall Street a. an indication that the
tariff question was once moro likely 70
become a stock market factor and that
there might he a Democratic majority
in the national House Of Representatives
70 he chosen this fall.
Now IL is no part Of tho function 81 this
column 90 discuss the question whether
a high tariff or low tariff or no tariff nj
all Is the he-t thing for the country and
whether any one or any mixture of the
different policies specified IL more ad-
vantageols than some other alternative
that might be suggested a. regards q
favorable effect upon security prices.
People in Wall Street are 81 all shades
81 political belief and likewise entertain
widely varying opinions upon tariff
matters. Consideration Of these topics
from ordinary economic and political
points % view are therefore beyond the
scope Of a financial article. Wall Street
Is very much interested. however. In the
general probability that n tariff debate
that was put IN sleep. as was thought.
many months ago Is once more % he
revived as a topic ~ excited popular
discussion and also in the likelihood or
seeming likelihood that the power in the
popular branch Of the national lawmak-
ing body may pass from the hands Of
the party that has so long been in control
there ard rest for a considerable time 20
come AZ least with the party now in opDo-
sitiun. Such an outcome spells unsettle-
mer' in the stock market and comes de-
CIdedlv within the range % financial dis
c,lsslon. II may IN argued 81 course.
and u - argued. that the election result
ia Massachusetts, was accompanied by
such special circumstances az 20 make
~, meaning less decisive than IL appears
20 t,e on It's face. and IL Is also rernembered
that then. - a natural reaction in every
mid Presidential term from the wave 81
popular feeling that manifested itself two
years hefore. II II all very we'll also 90
argue that in condemning the Payne
Aldr1ch tarif bill a. 50 many sections Of
the country now seem 20 be doing the
people in thcs" SEC, ions. or most 81 them.
Ar, acting with strange and extraordinary
inCpn-lstenCy. Processing to discuss tho
tar,n a. a national l-sIe, people hardly
without any exception treat II in fact a. a
sectional. local or an individual issue
The same voters IA Massachusetts who
voted heedlong for a Democrat last Tues
day because they were strenuous IN their
d,'sirs for the admI-sio on into tho country
fro " duty 81 raw materials desired IN
their business ar" just a. strenuous in
their demands that the duties upon the
manufactured products turned out bv
them shall not he lowered IN the sli ghtest
dagrss. In many other districts a voices
Il protest against free raw materials and
reciprocity with Canada IN raised Just
a. urgently a. the cry in favor ~ such
proportions was heard by Mr. Fos-'s
constituents; nor ~ there any probability
that a Congress elected in seeming direct
orr0Sition TO the terms - the Payne
Aldrirn tariT would have any less diff
Guilty IA making a new tariff than did
the Cpngr"s- which met last year. I,