The Washington times., 1910-02-20
MARKET CONDITIONS
MORE PROMISING
Easy Money, Delay in Ad-
ministration Program, and
Foreign Buying Features.
BY I. l.. FLEMING.

an upward movement in values for
the continuation Of the movement that
started two weeks ago. It is also evil
dent that the recent recovery has been
attended by fewer professional trailers
than has any previous advance for many
months.
In the way Of actual Improvement, the
developments have not been numerous.
The wiping out of weak pools and trans
fer Of weakly held stock has helped.
The rehabilitation of holdings of pTomi-
nent operators, sold out IN January apd
even in December, has been effective ia
aiding the advance. The chance Of post
pom ement of Administration measures
has been important. in that any post
pOnement would bring them back to
Congress after the fall elections, when
reelected representatives might not feel
so friendly 10 their enactment.
The recovery has been very cleVerly~
manipulated The stock acquired has
been largely from short sellers. Opera
tors were encouraged to take the short
side by reason Of well-advertised tips
10 the effect that the Standard OIL and
other important and leading interests
did not like the market rumor that
I kept a large professional element from
! trailing and set it to watching the ticker
for the sign of an expected slump that
did not develop It also suggested the
question o. the actual value Of a tip"
Reading the Favorite.
| Moreover, this movement has been ac-
| complished without lifting the whole
| market in equal proportion, the leading
| active stools being The old-timers. the
/ Harrimars', Reading, St. Paul, Rock
/ Island. Hawley's. New York fractions.
| Copper, Smelling. Steel. and some Of
/ the equipment stocks. There Las been
ad yances elsewhere, but Of less impor-
/ tance. Reading has been the real IA
/ vorite and the only one that has entirely
recovered its position before the begin
ming Of the January drive. The action
/ Of Reading creates the opinion that
! there's something coming and the Street
! Is convinced that there win be an an
| nOunCement before long.
| Close observers Of the Government
| case against the alliance between the
| Union Pacific and the Southern Pacific
/ have declared that the allies most ably
defended their position, and that signs
/ Of defeat were found I'm the loss OF
| temper by the Government prosecutor
! The defense has been classy, and IL the
| victory rests with the roads il will
matter what Interpretation is given on
/ the Sherman law
Easy money has been a factor in the
| betteTment of conditions. a big actual
| loan Increase in the statement yester-
| day, SlS,44S,0qQ, reflects heavy borrowings
! 10 meet large installment on account
OF the Ehics go-Great Western reOrEanf-
zation. This operation was put through
| n fur 4 IA
! furnished by the large banks. But
| money Is plentiful both here and abroad
I Foreigners have been good buyers Of
American n securities all week, the low
I rates Of money ana the high dividends
| being appreciated by investors on the
Continent and in England. They have
| operated even more confidently than the
/ home talent outside OF the leaders.
Sttel Common Strong.
| The incre Used strength in Steel com
mon has leiped the situation. in that II
/ is no longer drag The company is
doing a good business, increasing ton
| mage orders daily, and operating TO near
/ full capacity. The better demand for
/ bonds has given railroad companies
| necessary funds for the purchase or
rails and equipment, and the Industrial
corporations have been able TO keep
( busy. This has led to the absorption OF
equipment stocks during the past week
and a material advance has beer estab-
/ lished in the leaders of this group.
| The Iron Age IS authority Tor the
/ statement that there has been no iet-up
no cancellations Of orders in the iron
and steel business.
| Elsewhere will be found an interview
with Judge Gary, chairman Of the bOird
/ Of directors of the Steel Corporation. in
which he talks hopefully of the future.
/ This but confirms the story Of Charles
| Schwab. Of the condition Of the steel
/ trade, and surely two such judges as
\ these are zpt to be fooled by conditions
4 that are not really what they seem
! James }. HiH comes back with the as
! sertion that he has seen no evidences
| of business being on the wane, in reply
| 10 the much quoted assertion by Presi-
/ dent Earring that merchants in the
! West are cspceling orders %
| Pre5ideLt Reynolds, Of the Continental
| National of Chicago, a conservative
/ were indications Of reaction in the
| Northwest, bus il has not gone far, and
| there is nothing whatever to cause
| alarm notice a tendency TO await de-
velopments before making new commit
ments."
A Reason For 1t.
With che stock market nervous. pan
| icky, and sick-very sick-with the large
/ financial interests Of the East calling
loudly to the West to sell stocks and
helping along the movement In every
way possible-partially as a lesson 10
| Congress, partially in making millions
| on a slump, Il was but natural that
| business should hesitate-probably this
/ very fact WAS brought home TO the
| bosses Of Wall Street in such a man
ner that they feared for the result and
changed their position. and turned their
forces tc accommodating stocks once
| more.
! Signed interviews for publication are
more nearly right than word Of mouth
! stories.
Traders should not throw of conser-
| NatiSm by anN means Trading. shn1t1d