Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-05-21

business sense in years. II gives fnsur-
ance to enterprise that there will be no
further harassment or persecution. 1t is
notice by highest authority to every
business man that he can go ahead with
his plans with safety, provided he con-
forms to the everyday homely rules and
ethics of fair play and square deal The
law and the courts are supposed always
to teach honesty, but there is really
something tremendously impressive in this
last proclamation from the Supreme
Court of the United States. 1t tends to
popularize the homely virtue and may
put the fear OF God into the hearts of the
hitherto unholy rich.
Wall street is quick to adjust itself to
new conditions. and is already preparing
to turn from the law to the crops and to
other things which may be factors mar
ketwise. 1t is only a short step from
profound legal discussions to the diges-
ton of reports about the growing crops.
The official statement by the census bu-
reau that last years crops had a value of
$Ho,OOD.oOO is given special emphasis by
the oft repeated prophesy that this year $
farm production will be recordbreaker
both as to quantity and value. This,
after all, is the ever recurring foundation
source OF national wealth. It is from the
soil that we must all base our prosperity.
and the soil this year Is unusually full of
brightest promise. 1t is this thought
which fills the hearts Of every bull
SPECTATOR. and, generally speaking, of
the business world, increasing popular
faith and courage. This may sound like
a sermon instead OF a market letter but
1t is none the less tangible and clearly
definable feature in the present situa-
ton.
Shorts Were Overextended.
The sudden change in the market
front which followed the handing
down of the trust decision found the
shorts heavily oyerextended, and there
ensued a great scramble to get out of
the danger zone. The shorts were the
biggest and most urgent buyers. II
has been truly said that nobody can
get as panic-stricken as bear that
has been caught selling goods he
didn't have. The bears can run faster
and climb higher when they are
frightened than any animals known to
man. They have been making the
highest prices this week. although in
fullest truth they have not been alone
in supplying buying power. The quick
witted and nimble-acting professionals
and semi-professionals who had been
sitting on the fence, patiently await
ing the action of the Supreme Court.
were conspicuous in the heat of the
play. They filled large part of the
market place and were eager bidders
for securities. They took the hint and
to avoid the rush and get their lines as
cheaply as possible
The public also took hold. but It has
not been quite SO quick to feel the
moving bullish impulse as those who
are in closer touch with the actual
trading. The public may be expected
to work up about the time the big bull
movement is through its first stages
and ready for a reaction. There has
already been considerable profit-taking
but only by the in-and-out traders, who
rarely have the patience or the conf
dence to sit tight on purchases and
hold for full profits. They had rather
take small profits and get back in the
game again on the reactions. The pre-
yailing opinion is that the average of
prices will work very much higher
during the next few months. but there
will be immense surprise IL the ad-
vance Is not punctuated by important
reactions It is rare indeed that a
market advance goes right ahead In
perpendicular ascent.