Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-11-05
CHANGE IN MARKET
Bouyancy Follows Depression
in Stock List.
PRICES BOUND FORWARD
Most Noticeable Gain of Week Is
Made in United States Steel.
LEADER COMES TO THE FRONT
Bernard M. Baruch, Junior Lieuten-
ant Of j. Pierpont Morgan,
Gives Bulls Confidence.
LEADER COMES TO THE FRONT
BY H. ALLOWAY.

| the efforts In evidence are bit crude.
! Some OF the optimistic machinery creaks
, a lot.
| Just when everything seemed to be at
| the worst a week ago. when steel shares
| were dragging drearily at SO. aggressive
| litigation by the government coming Co
| incident with Generalization for trust
! products-just as regiments OF trembling
| prophets were sure that steel was bound
| for 20 or less-something happened. In
stead Of 80 being a starting point down
ward. 1t became the actual bottom. And
| all this week. though there have been
| 0iscouraging developments abundant.
market quotations have been not merely
hrm. but in so far as touches steel COM
mon-pivotal stock-actual buoyancy has
ruled. From 81 it rallies stralgnt away
| to ~. giving emphasis to the suggestion
| specifically uroed in this review that al
any time When everything should seem
hopeless for steel there would be iound
! sure profit in its purchase. nat COUNSEL
! is aS drranteu now as hitherto, though
| ne must ue sptInoy enthusiast VINO al
ire top buys on amy sucn RAPID squirt as
mas u.ade TINS week nlarhet RECORD
! notable ct what mas come TO pass WITH
| d rush Is JusttAeG amply Dy especial de-
/ VeiopinenlS having 10 40 with tie steel
| corporation ltselI, tor just as tnInss
| We're at their very worst and protesSlona.
! W all street was croahing over danger OF
dividend suspension the STEEL coIpui dtIou
| officially issued Data Wulcn disposed OF
| mucn massed misrepresentation; the
reg ular dividend was Declared not only,
out along with that announcement " as
published the record OF the current quar-
| ter earnings, mounting over slVUu,vNU
oeyond What was the record Tor the
quarter preceding.
Wall street had been listening to dole
r,,f ,..<xb.,
would be unuer S2..OOUvUO, the actual
| figures pass -ng S2yvuo.vUu Pundlts OF the
| curb were unpIepared for such IactS and
| hgures. They had committed themselves
| on tremendous scale to snort sales
| sa. es Of stock which they did not own
| which they borrowed for future delivery
! expecting to be able to buy back at fur
/ Their severe declines. Then started d
| stock exchange merry-go-round. Bear
| spectators who had contracted to de-
liver what they did not hold hurried N a
scramble to bid against one another to
| get what they were bound to produce tc
| keep their credit good. Stock sold blithe-
| somely in magnitude under 81 was found
ent buying feature came into the mar
ket. The upward range day after day
was pronounced. advance following ad-
| vance with hardly a reaction till ter
points Of difference came to be registered
| against those who had rammed and jam
med and damned SO vocFferouSly at the
/ bottom
| Those who led in the campaign. re-
| sponsible for this swift swing upward
! have reaped a pretty profit. Inc dentally
| wieldy, has been reduced; and technical
| ly. in that regard, the market is no,
helped.
For the splendid rally, achieved with
such celebrity and so smoothly, there mas
4 hatt DIR "a n In
of business conditions than hitherto has
prevailed. When fundamentals are meas.
ured there Is no excuse anywhere Tor
theories that the United States has come
into hard times. AS bearing upon the
market course of security values, almost
all elemental things are upon the health
| full side. Money is cheap, money is in
the hands Of lenders in volume beyond
| record known in recent years-thiS IN
despite of the fact that the United States
has been making loans at practically
every European capital upon scale un-
| precedented. Further fortifying this
phase of the situation Is the phenomenal
growth of the balance in our favor IN
4 International trade, mainly due to ship
ments of cotton and merchandise exports.
/ This establishes credits which make the
/ financial position of this country impreg-
nable in its relation abroad. Scant ap-
probation has been given to the develop
ment of our export business save in its
/ totsls-though even casual study of sta
tistics will disclose that extraordinary
things progress There is significance
when press dispatches make announce
ment like this: Sixty cars loaded with
| automobiles have today left one Detroit
factory for New York for foreign ship
ment."
! Wall street has not been contemptu
I GUS of progress like this. Wall street
has just merely been ignorant of the
| facts-has had no commensurate no.
ton of what goes on In developments
at every live internal point; for Wall
i streets horizon is so narrow that II
| commands vision of little beyond To-
cal boundaries. AS has insistenly been
urged in this review. the business in
terests of the United States are not al
/ all in the benumbed state which pro-
! fessional spectators upon the New
York Stock Exchange affect to believe
Instead of bad times we have good
times-certified in every community. ir
| every branch of trade-no boom. quiet
ude 1t may be. but assertive. whole
some commercial and industrial con-
ditions. With business Fundamentally
all right. Wall street gloominess has
been all wrong. The speculative situa-
tion abnormally misconstrued. was al
the beginning Of this week just plead
ing for an aggressive squirt OF com.
mon sense.
BY way OF summary nothing could
be more conclusive than expressions
from such an authority as James G
Cannon. president of the Fourth Ma
t,onal Bank. who this week in dis
GUESSING Business and the Financial
| Outlook" says:
, Money is still so plentiful that New
York banks are in large measure financ-
ing the markets Of Europe where discount
rates continue to rule materially above the
level OF Wall street quotations for such
accommodation. The estimate has beer
made by foreign bankers that the volume
Of our temporary loans outstanding in Eu-
rope stands In the neighborhood of $12O.-
600, 600 Taking this amount in connec-
ton with the $500, 900 coo international
trade balance as represented by the ex-
cess of exports over imports for the nine
completed months ending with September
the aggregate Indebtedness to the United
States by foreign markets apparently
stands at something like $4,000 600. This
| Advices received from mercantile centers
show that the country is doing fan
business but that the volume is moi
nearly as large nor the transactions as
| lucrative as they were at this time In
| 1909, or in any other year of high pros
perity. There are indications that the
iron and steel industry is becoming more
active and that consumers generally are
beginning to buy upon larger scale than
was seen a few weeks ago"
But Wall street at no time in recen
months has been in mood disposed to re
gard agreeably any argument" with
| cheerfulnesS in II. 1t was needed tha
when crises came-as crises a week age
did come-that some vigorous personality