The Washington times., 1911-10-08

NEW YORK, Oct S.-The recovering
movement which set in with the issu-
ance Of the statement by Mr.. Morgan
and Judge Gary concerning the status
of the United States Steel Corporation.
in relation to the Sherman antitrust
act, came to a halt on Monday. There
after prices were highly irregular, and.
although the general list experienced
no pronounced unsettlement or violent
declines such as characterized the trad
ing of the recent past, the market was
regarded as a disappointing affair. This
view gained ascendency as the week
progressed, and at last 1t appeared to
dominate the entire financial district de-
spite some upbidding Of specialties.
What contributed more than anything
else to the depression of speculation
sentiment was the curtailment of ac-
tivity on the price improvement. Trans
actions fell off nearly two-thirds from
the total of the preceding week, and 1t
was made clearly apparent very early
in the session that the general public
was not following up the advance. In
fact. 1t was freely admitted by commits
sion houses that the response from out
side sources was a negligible guam
tity. and as a result a number of pro-
fessional traders, who had shifted their
positions and had gone long of the stock
for a turn a week ago. closed out their
long lines and worked for reactions, and
the market lapsed into a professional
performance.
Searching for a Way Out.
Although, in view of many disturbing
features both at home and abroad, very
little was to have been expected of the
security market, it is none the less
highly disconcerting for the commission
brokers to have the fact forced home
upon them time and again, recently.
that the public seems to have deserted
Wall Street Certainly not within the
present generation of stock brokers has
there been a condition quite like the
present, for the public has shown no
disposition to buy on the decline and
no disposition 10 buy on the advance,
and that, despite the fact that there
have been no defaults. that dividends
have been maintained and that stocks
generally are on an attractive basis, as
measured by interest yield.
Wherever brokers congregate now
you are apt to have this question dis
cussed to the subordina ton. IL not to
the exclusion Of other topics. In other
words the disturbed condition of affairs,
the loss of public confidence. 10 fully
recognized and admitted: and acknowl-
edging this to be the case. men are ask
ing one another how long this con-
dition can last, how we can work out
Of 1t. and when? AS one broker put II,
in the Stock Exchange Lunch Club the
al AAWr lOva l.
the tariff and the trusts and the rail-
roads and the unrest OF labor and all
the other things. I know all about
them, and l know what effect they
have had on my customers, and upon
my business, and upon business gen
orally What want to know is, how
are We going to get out of it, and
Studying the Problem
In seeking a solution for this problem
men have been searching the records
of the past intervals of depression and
the manner in which the markets have
finally thrown off their dependency
They find no exact parallel with the
present situation, either in the recovery
from the long drawn out period of
hard times" which followed the panic
of 1878, or in the later agonizing period
which followed the panic of 1853, and
continued until Mr.. Bryan's defeat in
the Presidential election of 1895. In
one particular the present situation is
better than either of the foregoing, for
then countless railways and other cor
porations were in default whereas at
present there are practically none. Our
constructive investment at the present
time seems remarkably sound.
What clouds the problem just now is
the fact that, men at this time cannot
see wherein the outcome of the Presi-
DENTAL campaign can bring immediate
relief. Wall Street has always been
Republican in national elections, and
has heretofore regarded that as the
constructive party. The financial dis
trict conceived violent antipathy to-
ward President Roosevelt for his ac-
tivities in curbing and regulating cor
porations, but It did not waver in its
alIegiance to the party. 1t argued that
the attitude was personal with Mr..
Roosevelt; it expected different things