The Washington times., 1911-10-22

timent appeared somewhat more cheer
fully inclined during Wall Streets busi-
ness week, chiefly az q result OF the
resistance whichh the market offered to
aggressive bear selling. and this general
characterization was not modified to any
great extent by the reaction in today's
market. Prices. to be sure, were highly
irregular, and dealings we're largely OF
. professional character, with activity
converging upon q limited group Of is
sues, but observant brokers insisted
there was some buying Of excellent char
acter on the declines, and the ease and
rapidity with which conspicuous issues
recovered when selling pressure relaxed
went Q long wey toward confirming this
opinion.
It must be admitted that so far as
banking interests are concerned one
finds little, II any, modification Of views
recently expressed concerning the gen.
eral situation. The source and charac-
ter Of the disturbing and restraining
influences are such that the banking
element does not look for confident op-
erations upon an extensive scale in any
direction for some time to come, and in
consequence banking interests do not
encourage the hope or belief Of a gen.
eral or long-sustained Improvement at
this time. But the banker Is consider
Ing the broad. general situation and the
stock broker 10 looking at an Mediate
market position, which he appears to
think II favorable for an upturn In
prices.
Strong Technical Position.
1t would appear as though the inn
provement In sentiment. which was
really quite pronounced at times during
the week, was due more to technical
conditions than to actual developments.
While the news was by no means who'll
ly unfavorable. the features which at
tracted the most attention. namely. the
active opposition which has sprung up
against the American Tobacco Company
plan and the contemplated abrogation
OF the Great Northern Ore lease by the
United States Steel Corporation. would.
under usual circumstances. have been
80 regarded. As a matter Of fact neither
development had any lasting influence
on the market. AS for the intention
Of the Steel trust to unscramble it's egg,
SO far a. the Ore contract is concerned,
1t was actually interpreted in some
quarters as a bullish argument
That the technical market position Is
very strong. indeed. admits OF no argu-
ment, Tor that was clearly demonstrated
by the inability OF the bear party to
impression on the general list, despite
their continual hammering. Whether
outstanding short interest is as large as
would appear from the borrowing de-
question. So far as concerns the ele-
mont OF strength which such an opera
ton imparts to a market. however. 1t
shares are borrowed against actual
snort sales or against deferred deliveries
Of long stock. for the results are identi-
cal. With very many persons the belief
! come to pass. but 1t is scarcely neces-
sary to say that the driving in OF the
shorts will not Of itself create a bull
movement.
The Restraining Influence.
Conditions must be favorable and
fresh buyers must come into the market
to sustain any advance. which origi-
mates In short-coverins movements. and
It does not seem likely at a time when
confidence Is so seriously disturbed that
speculative Wall Street can look for
much outside support. 1t Is probably
not 50 much disturbed over the attitude
Of the Government toward the Industrial
corporations as are fnanciers who have
been in the thick Of the fight for all
men ana manufacturers have political un.
certainties and the assurance OF the
agitation for tariff reform to consider
and neither is conducive Of confident
operations; On nth, the contrary they make m
never made a speculative bull stock
market. It 10 q condition not unfavor-
able to strict investment operations,
however, and in that there Is saving
| element.
AS was fully expected by persons who
knew the circumstances, the enthusiasm
with which speculative Wall Street
greeted the plan for the dissolution OF
vance Of announcement oozed out as
soon as the details were published. 1t is
| difficult to understand where speculative
as announced the plan would 60 into
effect. affording a pattern for the guild
ance Of all other Industrial trusts. yet q
very large number Of persons did hold
that opinion, and they were sorely dis,
the scheme for subdividing the company
lacked the approval, as yet, of the
Department Of Justice. and that the
entire matter would have to ,t be thrashed
before any assurance could be obtained
Of its approval.
The Tobacco Plan.
But II speculative Wall Street hac
any excuse for not knowing the method
Of procedure through the courts In the
matter of the company's dissolution
plan. 1t certainly had every reason tc
know that opposition to the scheme OF
dissolution was to be expected from
the independent tobacco concerns and
affiliated bodies. From the day tina
the first rumors were circulated tina
the trust planned to resolve itself into
three or four companies, II was an
nounced that tobacco growers woult
oppose such a scheme on the grount
that 1t would not restore full compeu
tive conditions. Now the opposition
to the plan has reached large proper
tions. including the States of Nortl
and South Carolina and Virginia, Al
well as very many Independent tobscc,
companies, growers. and associations
and II would seem as though thi
might defeat the proposed plan entirel,
or force an extensive modification of tn,
dissolution scheme,
The important banking interests O
the city, as is well known, are deepl.
concerned In having the Industrial trus
situation definitely settled. and the,
have been hoping for a plan In connec
ton with the tobacco company which
would serve as a model for other cor
| porations which are, or which NAV be