The Washington times., 1911-03-12
MARKET CONDITIONS
ARE UNQUESTIONABLY IMPROVED
Unfavora Ordinarily
Even Seriously Considered Look Have Way Cleared
Soon for Market.
By JOHN GRANT DATER,
Special Finanelal

NEW YORK, March 12.-In the unset
Ting news of the week there was suf
icient provQcation for a sharp reaction
In the security market, but nothing OF
the kind took place, and the stability
Of prices when subjected to an unusu
ally severe test, extending over three
successive weeks, has demonstrated
quite clearly that the fundamental con-
ditions are sound, and that the tech
nicaI Wall Street position IS one of un-
usual strength.
No other conclusion than this is pos
sible from the fact that instead OF
forcing liquidation the only effects,
practically, OF such developments as the
mobilization of a considerable portion
of the nations military and naval forces
! along the Mexican frontier and in the
| adjacent waters, the reduction of the
| New York Central dividend, and other
adverse factors was to intensity pre-
| vailing dullness.
| Stocks were somewhat irregular.
| which was natural enough under the
circumstances, but after sundry back
| ings and filings. for which professional
traders were wholly responsible. prices
left off not far from where they started
on Monday morning last This certainly
speaks volumes for the intrinsic situa-
ton, for the disturbing news of the
week follows hard upon such features
as the call for a special session of Con-
gress and the adverse decisions in the
matter of freight rate advances, all of
which are developments of a character
calculated to upset any market unless
structurally strong
Remarkable Resisting Power.
Attention has been directed in this col
umn on numerous occasions recently to
the remarkable reserve force displayed
by the security market and this was
illustrated in still another direction dur
ing the week. If there is one thing more
than another that the financial district
abhors 1t is a surprise. The manner in
which the Government acted in rushing
troops and battleships in the direction
Of Mexico, making no clear statement of
the purposes OF the maneuver. but act
ing as though to invade n foreign land
or to repel an armed incursion, was
wholly unexpected, and presented many
features calculated to alarm a sensi-
tive market.
But Wall Street withstood this sud-
den call to arms. for it was made to
appear as such in the first exaggerated
reports and wild conjectureS, and
showed thereby that ii has become
''shock-prOnf." I.cndcn and Paris were
much more seriously affected than New
York by the incident, and one having n
ten or dozen years experience III Wall
Street can recall countless instances
violence upon rumOrs and developments
which are aS inconSeQuential trifeS
wnen compared with the masSinS OF A
BODY OF troops. the second largest that
has been under arms in nearly fifty
years in this country, to preserve the
neutrality of the border.
The Mexican Situation.
In view of the official statements
made both by the Federal Administra-
tion and the Mexican authorities, there
appears to be no ground for serious ap-
prehension concerning the mobilzing OF
troops in the Southwest. The maneuver
ought to accomplish It's purpose in serv-
ing notice upon Mexican revolutionary
sympathizers in this country that they
cannot levy war within our territory
upon friendly state, and in serving
notice also upon the Mexican bandits
that, in conducting their lnsurreCtiOn, .
they had best refrain from molesting
citizens and interfering with
American property; and it ought to, and
probably will, induce the Mexican au- +,
thorities to move more vigorously for
the suppression Of the revolution.
VI course, 1t Is always possible to /
magnify an occurrence of this kind, and .
there Is a ltmitless field for rumor and ,
conjecture and SenSationalism growing
out of the unusual situation. One al |
ready notes II in the reports of Presi- !
dent Diaz's precarious state of health;
In the suggestion of possible American
Intervention in the Mexican trouble; in
the assertion that Germany is seeking
a coaling station in Yucatan, or else
where; and in the rumor that Japan is
asking for the cession of Magdalena
bay. All these reports are denied, but
for time yet new ones are likely to
crop up. The financial district, how
ever. has certainly accepted the eX-
planation of the Administration. and
though all hands would be better
pleased If the troops on this side of the
Rio Grande were in their customary
barracks, and those on the other side
were safe in their respective homes,
banking interests are evipcing no alarm
over the situation.
Correcting Mistake.
The reduction of the New York Cen
trail annual dividend rate from to 5
per cent occasioned no great surprise in
financial circles, and, in fact, it was an
icipated in the price OF the stock, even
before the Interstate Commerce Com
mission denied the application of the
'oads to advance freight rates. With
,ut in any way rejecting upon this i'm
1ortant property or its management, it
nay be said that from the Wall Street
point of view the per cent dividend
ate of the Central road has always
oeen viewed with suspicion. and the
more so, because at the very time the
dividend was advanced to per cent the
executive officers were taking the lead
n the agitation for freight rate ad-
rances, and they were loudest among
group of railroad officials who were ]
disasters unless the carriers
,ould put the higher traffic schedules
nto operation.
That the dividend was not earned
rom the operation of the road and was
made possible only by forcing the leas-
d and controlled lines to swell their
was clearly demonstrated
~ annual statements, and that the
ate was advanced to aid the road in
elling securities was admitted at the
Commerce Commissions inquiry. That !
his was a mistake in the policy is
hown by the results. The dividend
las. been reduced and instead of ar
angling for permanent financing the G
-. ~, to =