Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-01-29
Conform to Conditions.

able to adjust themselves to known con
ditons, and to established rules and lines
of policy.
Conform to Conditions.
If the railroads and Industrial COM
panies find they cannot get what they
want or that they will dc obliged to
take fraction of a loaf instead of a
whole loaf. they will not be long in com
plying with the hard facts and ascertained
conditions and going ahead. 1t is not in
the nature of the American people to sit
still when it is once shown to them in
what direction they can move with safety
ana with assurance of permanency and
| stability. 1t is the doubt and uncertainty
as to the construction OF laws govern
ing business that confuses and hats en-
terprise. Many of these doubts and I'M
certalntieS are about to be removed and
with such action speedy restoration of
prosperity IS looked forward to with con-
fidence by those who are largely con-
cerned in the direction and management
OF the big business of the nation.
Ihe stock market very accurately re-
meets popular sentiment with regard
TO the great business problems. There
has been a gradual growth of conf
dence in the outcome, coupled with q
sense of relief that the stage of rn-
certainty is coming to an end. Tho i'm
proved tone to the market has not been
q regular. even movement, but is ac-
companied by more or less nervousness
1t is not exactly the nervousness of
fear or special doubt, but rather a ease
of nerveS'-One OF the features of a
long wait. 1t represents the effects of
a strain. The tape registers day by
day the ebb and flow Of this minor
nervousness or tremor. Price changes
these days arc made more by the
operation of room traders, who find it
impossible to keep still They are ever
under the curse of restlessness. They
must be doing something, even if moth
ing more than matching pennies or
gambling on trivialties. The back
ground of the market is solid, a fact
which is discovered every time any
organized effort is made to break prices.
Attack on Market Failed.
One attempt to smash the market was
made the day Mr.. Morgan sailed for
Europe. Prices were depressed point
or two. and then waiting mass of
buying orders was encountered. Steel
was made the center Of attack. 1t was
sold enormously. and quite possibly
some long stock was dislodged, but
there seemed to be no end to the
Willingness and ability Of the bull party
in that speciality to absorb offerings
The result was immense enlargement
of an already unwieldy short interest.
Steel has been a favorite stock for
the bears to concentrate upon. Now
and then they are allowed an inning,
and get away with small profits, which
they do not seem able to keep. They
play their winnings right back into the
market again. Experts on the stock ex-
change say that any move to cover
shorts on large scale would put the
price up to 10 points, and this re-
CARELESS of the condition of the steel
and iron industry itself.
AS for the latter 1T may be said that
those best acquainted with the real
hot f,irth m
provement is taking place-not enough
as yet to arouse wild enthusiasm, but
sufficient to give genuine encourage
ment to those who keep their fingers
continuously on the pulse of trade. The
demand is >unlues tionably picking up in
structural steel, tin plate, wire products
and rails. Except in tin there has been
no advance in prices, nor does any seem
products are still slow and dragging,
| but on the whole the outlook is more
encouraging than it has been for year.
| These are the facts which are widely
known to the leaders OF the formidable
bull party which has been specializing
on the steel issues for good while
past, and which is now more strongly
| intrenched than ever. Steel common
| reached the highest point that has been
made on this movement only two or
three days ago.
Importance of Cheap Money.
| The reduction in the Bank Of England
| discount rate was a bullish ancident
whose importance is not moderated by
| the leaders in the stock market. 1t har-
monies with the local conditions. and 1t
| is the common belief that we are going
! into a period of abundant surplus cap
| itaEwhich the same will not be allowed
| to remain idle. Plans are being pushed
| forward rapidly for the fiotation of new
issues of bonds and stock for railroad
and industrial expansion. and these plans
/ interstate commerce commission, Su
prerle Court or legislation, state and
national. Friendly action in political
and judicial quarters will accelerate. but
nothing that is likely to- happen can
cause more than halt in the program
as mapped out. Active use Will be
| found for all the dollars that are piling
up in this and other centers, both at
home and abroad. Furthermore, it is
| certain to command good interest Call
money may be cheap at times, but for
long periods rates are to be maintained.
The successful fiotation of the sixty
million-dollar issue of New York city Az
per cent bonds (stock) was not a start
/ ling stinulant to stock speculation or
| investment. The result was about what
| had been expected, but 1t seemed to have
been discounted on the exchanges. Trad
on the news instead of buying it up.
| although the disturbance seemed to be
| only skin deep Now the money lenders
are ready for new things.
Trunk Line to Baltimore.