The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-01-03
WALL STREET NEWS
New Year Turns Country
Into Brighter Hopes.
PROSPERITY is ON INCREASE
FOretOId by Big Crops, Increasing
Wealth. and Prospective Legisla-
ffOn-Causes of High Prices Ex-
planned by Reflection Upon the
Past Year of Development.

New York, Jan. At VIII be disputed
by few people at all conversant with the
STOCK market and with the course OF
general business that the history OF these
affairs In the calendar year just ended
forms one OF the most remarkable chap
ters in the business records OF the United
States.
Two years aEo a financial panic swept
over the country that was obviously to
be rated as among the major sort OF
such disasters. A practically universal
suspension Of cash payments by the
banks took place, and the length or time
through which this suspension was car
red was longer than It has been on
various similar occasions IN the past.
In a short time business recovery set
in on an unexampled scale. The real
commencement Of this was on February
Is. last year. when the United States
Steel Corporation announced large re-
duction in its formal list prices for nearly
all classes OF its manufactured products
and in fact established an open market
for these articles. Soon new orders be-
gan TO flow in for iron and steel goods
at the low prices quoted, and from then
on throughout last year the upward
march OF business went on IN rapid
and unbroken way.
So lar as the immediate present is con-
cerned business is stu splendid over the
land and money is comparatively easy
With these two great factors at work
and remembering that the sanguine tenn
per OF the American people and especially
OF the American Spectator Is ever IN
elined to optimism, the prevailing optn-
ION seems TO DO that the highest reach
OF business prosperity and the highest
prices Of stocks have not yet been seen
in the course OF the upward movement
Of values which began eight months ago.
The belief is certainly reasonable that
the present wave OF prosperity ~ the
country has an impetus that VIII carry
# farther before It stops. The popula-
ton OF the nation is increasing by leaps
and bounds and an immense development
Of business and industry TO an extent
undreamed Of by those who have not
actually seen It is going on In the West
and South.
Crops and Politics Fine
Political conditions are certainly not
1t the moment threatening. and the crop
prospect for next season so far as Il
has unfolded Is excellent. The high prices
received for the leading staples in lSV6
viii obviously cause an enlarged planting
IN 1910. A great increase in acreage has
already occurred in the case or winter
wheat, and this along with high condi-
ton Of grain already recorded affords
a preliminary promise OF the largest
winter wheat crop ever gathered.
Again. the foreign trade OF the country
does not stand Just now in satisfactory
shape and gives no immediate promise OF
undergoing Improvement For the eleven
months OF the last calendar year for which
statistics have been Afforded the excess
value Of our exports over imports was
coo less than II was IN the proceed
FMS. year, and this was due, as inspection
shows. not so much to the fact that oul
exports were notably less-although they
Nrers still relatively diminished-as tina
our imports enormously increased I
may be truly said that only one construc
ton is placed upon this by sober and care
full thinkers upon economic subjects, and
that Is that the country, taken as a whole
Is living extravagantly The number o.
automobiles in being and ordered for mex
years delivery is put as being in exces
OF 151o00
An average cost OF $1,000 for each ma
chine would not. probably, be an exag
geration. When to this initial expendi
ture OF E50,OOO.000 for this one article o
luxury alone, and that OF recent origin
is added the yearly cost OF operating TIL
automobiles. the volume Of national ex
penditure in the matter becomes startling
other proofs Of the same tendency mus
occur to every one, and the question 1
recurring with more and more emphasis
What is likely to be the end o
the matter? or. to converge the issu
upon one point only. How will tn
country eventually settle the advers
trade balance that is piling up agains
It If affairs continue 10 90 on Il
the same fashion? 1t is q matter o
record that many staple articles, such a
leather and Of all the various hog prod
ucts. are selling at higher prices thai
have been seen since the civil war. an
that IN general It costs much more now Z
live in the United States than It did eve1
as recently as ten years ago IS eoncede
by every one.
Money Going West.
As a result Il Is very doubtful II tn
savings OF the country in proportion I
the population are increasing; and as re
CARDS one thing at least evidence is wei
nigh conclusive and that is that IN
accumulated capital OF the manufacturin
population in the Eastern part of tn
country is being drawn upon to sustat
life and is being diverted 10 the pocket
books Of The Western farmers.
The increased production Of gold ha
doubtless something TO do with the mat
ter. There are those who trace the ger
eral cause back TO the fact, as alleged
OF unduly high standards OF persona
comfort that have been set up.
Il appears to be true that the hig
prices OF pork and lard are due in cor
siderable degree to the presence OF no
cholera in the last few years, which Ia
reduced the supply Of hogs, and in 5
far as this factor is concerned II
plainly matter of temporary character
But II is not so clear that the difficult
as regards meat production IS Of the sam
fleeing sort, inasmuch as the chief trou
BE here seems TO be the curtaIlment {
the cattle ranges. many of these ofte
being upon government land and thu
free over which the cattle I'D TO sho,
time ago roamed upon the Wester
plains.
Tariff Eject on Prices.