The Republican. [volume] (Oakland, Md.) 1877-current, 1910-06-09


Cured, while restricted consumption of
many articles is working for readjust-
ment in other directions Cotton and
grain have been under manipulative
control for nearly two years. The
manner in which speculation has been
conducted therein has been an adverse
| influence on general trade as well as
impelling growers to retard marketing
in the hope of securing the high prices
predicted by those instrumental in the
manipulation. Farm reserves are con-
coded to be larger than commonly sup
posed and the decline in wheat, corn,
cotton and food animals has resulted in
bringing out larger movement to pri
mary markets. The evils of cornering
commodities and of over-speculation IN
stocks are clearly recognized, but no
progress worth mentioning has yet
been made towards correction. Stock
and investment markets just now are
almost stagnant and railroads have
been obliged to resort to foreign none
| tary centerS to raise funds for corpor-
ate purposes. This was not because of
lack of capital at home, but rather
to tlmldity. There are too many I'M
certainties in the outlook over the next
six months and too much of a feeling
that some impending danger is at hand.
The investor, beset with a smaller
| purchasing power from a fixed income
than five and ten years ago, demands
and is securing a higher rate of inter-
est. Economists differ as to the likeli-
hood of a permanent basis Of high costs
or an ultimate readjustment to a lower
level Needless to state, capital will
insist on a return commensurate with
prevailing conditions The continued
prosperity of this country depends
greatly on its ability to compete in
agricultural products in the worlds
markets and the present state of our
foreign trade is mainly due to the fact
that domestic prices of wheat, corn,
meats and cotton have been out of line.
Instead of exporting such commodities
in anything like the usual volume we
have been sending gold to iiquidate
London's Indebtedness to Argentine,
India and Russia for food stutfs. If
May and June show the same ratio Of
increase in imports and exports as the
previous ten months the result of the
fiscal years movements should be an
excess OF exports amounting to Sl65,-
10000 This would compare with
1851, l73, 600 in 1900; S666, 43l. 600 in
1905, and a yearly average of $500, 0O0,-
600 since 1891. The necessity for a
change is conclusive; we believe that it
is under way.
Imitation progressed with little inter
ruption for twelve years; dehation un-
der ordinary circumstances would be
looked for naturally, though it, too,
must require time. 1t was only partial
in 1908, as the powerful financial and
speculative groups in New York. with
huge resources, released from the or
binary channels of business because of
depression, and aided by the prosperity
of the western agricultural regions,
were able to force one Of the most ex-
traordinary advances in the history of
stock market operations. In previous
periods of recession, liquidation was
generally permitted to run its course
and recuperation started from a secure
basis. A new experiment was tried
two years ago. Holders of securities
suffered severely in the panic of 1907
and the vendors of merchandise in 1905.
Labor was little affected, except from
irregular employment. Wall Street
and those who guide its destines evil
IDENTIFY believed that sharp rebound in
security values and the optimism that
nowadays so closely follows such move
ments would not only demonstrate that
proSperitY's return was predicated on
the end of the Roosevelt regime and
the Inauguration of business admin
istration,' but would inevitably i'm
press party leaders with the conviction
that nothing must interfere with the
plans and schemes of the captains of
industry. Trade did expand vigorously
for few months last year and produc-
ton in different lines reached new rec
ord totals. Meanwhile, the public at
large became deeply exercised over the
apparent return of corporation control
and the alleged sidetracking of policies
which had been accepted as vitality es-
sential to the general welfare. A quick
revision of ideas suddenly developed in
Washington and those who had antc-
pated a period of noninterference i'm
mediately changed many of their plans
by reason thereof. The result was an
abrupt termination of the forward
movement in the stock market and Sc
we're liquidation, subsequently followed
by speculative and investment inertia.
Wall Street has intimate knowledge
of the sentiment of the country on
matters of public import, as well as the
general opinion regarding Mr. Roose-