New-York tribune., 1910-02-27
AIJ.AWAY'S REVIEW

This is sequel TO genera in 'i'S'"
throughout the earlier part OF the week
and for the final declines there Is no
more satisfactory explanation than there
was for forerunning strength
we have a variety of news develop
rnents during the week OF size eHough
70 exert influence upon the course OF
,,arLst nrices. and the professional eie-
ment ON the stock Exchange has made
much ado over every development that
has had ~. it any indication OF disturb
ance. In chief howeveT-it may De SAID.
indeed. in virtually every inStance-sucn
adverse influence as shows against the
market is traceabIe to exaggeration upon
the part Of Stock Exchange speculative
interests: for measured by any standard
Of actual loss or actual FISK there -
nothing disclosed that can be fairly con-
str,1ed as disconcerting in any important
degree.
It may be that current market recess
sions have the result of influencing im-
portant financiers and their followers 70
show market antagonism, TO be inciinea
to take gruesome views. TO sell rather
than buy to find agreeabIeness IN
market upset But theorizing like this
is only theorizing; Mr.. Armour MI
Swift and the Messrs. Morris are not
children hurrying into hysteria. any
stock market procedure they undertake
will not be Of sudden spiteful. spit-hery
sort; they are men OF affairs Of long
and large experience-there is nothing
hystericaI about them. Yet it pleasss
,,.aI-sa no ret
bets that security quotations are going
to be depressed by reason Of liquidation
following bearish onslaught from the
Beef Trust quarter-thOugh what chiefly
may result from this is a very substsn-
tial extension in short interest already
waterlogged.
Present market conditions reflect the
uncertainties generated since the first Of
the year by series of unforseeable Un-
toward happenings (chief among which
the Paris f1oods) and by adverse senti-
ment excited by apprehension OF Iegis-
Iation at Washington and Albany mimi
cal to corporate interests Wall Street
has harped upon this latter feature 10
utterly unwarranted extent-dnd II -hs
utterances heard from day to day were
worthy of credence there would be dan
ger signals of alarming character But
it is certain that all such talk is in the
main argumentative effort of an aggreS-
sive bear party to fortify its position
Actually. it is not conceivable that ma
tfonal or state legislators are committed
to a crusade Of confiscation-
Meantime, the course of the security
market shows swerving from the real
equilibrium of quotations and values
No matter how good a security may BE-
no matter how valid may be the asset
and earning power behind it. u Is at
tackled with innuendo and hints In COM
pIete disregard of facts-a conspicuous
illustration being afforded by Steel COM
mon Subjected to this campaign of aouse
and MISREPRESENTATION. tirnid stockhold-
ers have been frightened into l1qida-
ton. Beyond doubt, much real hqu1oa-
ton has been brought about, nor IS there
cessation of this at the present moment
But compared to the body OF Stockholm
ers liquidation of this character Is insfs
nifcant: the great mass of shareoWne's
cIinging to their possessions with tenac-
ity-conffdent of the actual existence or
a national prosperity which can and VIII
overwhelm temporary disturbances
Stock after stock can be analyzed-
both in the railroad and industrial lists
disclosing earning power-dividend
having power-far in excess of the
parity of ruling quotations Such con-
dition cannot be lasting Asset ana
earning poyer-and vaIue-must in the
nature of things find ultimate reflection
in security market quotations This IL
an axiom of financial economics which
is -incontrovertible-
Apart from all the hurlyburly swas-
gerings OF the bear coterie-distiuct from
the daily happenings of narrow rnarkst
movement affected by the operations OF
professional specuIators-stand out tne
sreat dominant facts which cannot De
ignored bv conscientious students OF con-
ditions. Agricultural wealth-constantly
increasing wea1th-is demonstrated
certainty. And that large section of our
nation which produces the fruits OF the
earth enjoys unprecedented prosperity
in confirmation of which 1T is but neces-
sary TO examine the current quotations
of the grain and cotton markets Agr1-
cultural prosperity compels industrial
and commercial good times-effect must
follow cause. So, to the impartial oo-
server. it becomes evident that whatever
may be the immediate course OF Wall
Street fuctuation equilibrium between
value and quotation is an inevitable nut
ure certainty All of this has nothing TO
do with those daily operations on the
floor of the Stock Exchange which rep
resent momentary whins and impulses
of professional traders-but Ii has every
thing TO do with final results IL Steel
common Is earning Is per cent. dividends
and paying but per cent.-which is the
fact-it il sure that the price of the
stock must sooner or later register facts
1t can be raided time and again by
short" enthusiasts. but it cannot be kept
down for any great length of time-nor
can its possessors be rushed into liqufda--
ton while the stock is at price yielding
full per cent. revenue This by way
of Illustration. Many other stocks couIu
be quoted in emphasis Of the arsuhls"s
presented.
1t is not improbable that during the
coming week-and. indeed. throughout
will h.N Str