The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-01-31

New York Jan. S0.-COnditiOnS that
have been long maturing. but which only
in the present month changed from
merely potential into active forces. were
again last week vigorously displayed in
the stock market. During the week the
floods In Paris. perhaps, influenced Sc
curity prices TO some extent, and yet it
is doubtful whether IL the market had
not been in a discouraged mood for other
reasons. the event would have been con-
sidered a factor Of any moment. OF
course. the only way in which the affair
could affect values here adversely is that
the expenditure Of money in France to
repair the damage done there would
strengthen money rates In France. and
so possibly Induce gold shipments from
this side. Experience proves that the
financial losses OF such disasters are
always greatly exaggerated at the time
OF the trouble and, although the blow
has been heavy. it seems pr, per to put
it in the same class with the San Fran
cisco earthquake.
Early in the week the directors Of the
Steel Corporation settled the question
that had long been a cause OF agitation
in the financial district Of the dividend
rate on the corporations common stock
for the quarter The action taken by
the directors in declaring an extra divi-
dend Of three-quarters Of per cent on
the stock. making UP TO the share
holders full 4 per cent distribution for
1903. was universally approved. but here
again the Respondent attitude of Wall
street was such that the general com
ment made In speculative circles was to
the effect that the extra distribution had
already been discounted in the price OF
the Steel shares.
No Effect on British Election.
The daily reports OF the voting at the
English elections We're little needed, in
asmuch as the English security market
appeared TO be itself Indifferent as 70
what was going on. Another general
election is looked upon as likely at
reasonably near date, and whether this is
or IS not a good thing from a financial
point Of view is q matter upon which
opinion appears to differ. At any rate
il has thus far cut small figure in the
American stock market
The real feature Of the American stock
market last week was what seemed to
be its inherent weakness. The market
was plainly not receiving the support OF
the larger financial interests. except In
a temporary and desultOry manner. On
very weak days q certain amount Of buy
ing Of stocks was noticed. but the stocks
thus bought were generally for sale as
soon as the market rallied. Spectators
for the decline were apparently allowed
to have full sway over affairs. and con-
sequent bear attacks with quickly fol-
lowing retreats, were the order OF the
day.
II there was any one stock whose
fluctuations excited particular attention
It was Union Pacific common stock. This
IS stock that has long been the leading
Issue in the railroad list. and its per-
sistent heaviness did as much 10 un-
settle the entire market from a strictly
speculative point Of view as any other
one thing. 1t is now very evident that
large liquidation Of Union Pacific com
mon for sO-called inside interests went
on steadily for several months last year
after the price OF the stock was rushed
up to S218 share In August on rumors
Of a segregation" OF the company's
assets.
No doubt hestancy in the stock market
has been and must continue TO be caused
by financial anxiety over the character
Of the decision OF the Supreme Court in
the American Tobacco case that will be
handed down probably some time in the
course Of the next two or three months.
Whatever sound reason there is for dis
satisfaction with the present status and
operation OF the antitrust law, the PresI-
dent has said nothing OF done nothing
on the subject recently of novel or start
ling character. He has announced no
policy other than that which he has
steadfastly adhered 10 ever since he took
the Presidential chair and which was
clearly outlined in the Republican nation
al platform.
The real powerful and truthful cause
Of the decline in the stock market that
has gone on so rapidly since the first of
the year is. first, the enormous amount
OF liquidation dextrously and quietly con-
Quoted by large holders OF stocks in the
closing months OF 1909, consequent Upon
the discovery that the security market
had gone stale" and, secondly, the pro-
found apprehension Of thoughtful people
regarding the results OF financial and
economic nature that may follow from
the present. high cost of living IN the
United States.
More and more, as the davs go or.
the gravity Of the situation in this re-
spect has impressed itself upon serious
attention, and this has gone so far as 10
present the issue squarely whether in
the face OF existing conditions. not TO
speak Of those that are threatened. the
eastern part Of the United States at least
can be said 10 be in a state of prosperitv
as compared with that OF former years.
Some signs Of reaction from this high
cost are already apparent The price of
cotton has declined to a more reasonable
level and there has been a subsistence OF
speculative operations for the rise in
many commodities whose consumption is
essential 10 human life.
on the other hand. those best Informed
seem to think that taking the range of
foodstuffs altogether, no very notable de-
cline in their price is likely to be perma-
nent for long time yet in the future.
Pork products, II IS said may fall in value
when the disastrous effects OF the recent
hog cholera have passed away: but the
consensus is among the best judges that
the price of meat is likely to hold near
where It is. largely because the free gov
eminent ranges OF cattle land no longer
exist. and cattle now have 10 be raised at
greater private expense than formerly.
THE
Washington tailoring and Pressing ca