New-York tribune., 1911-01-01
ALLAWAY'S REVIEW

II is a common place habit at the end
Of one year, at the beginning OF anothes
year, to discuss what has been and what
is likely to be. Under present circum>
stances only triflng and foolish people
will make prophetic attempt. The old
year ends with dulness; the new yesl
has no assurance Of anything else. Mar
ket quotations fell at the end of 1910
for no especially quotable reasons; at
the beginning OF 1911 they are not likely
much to change.
In large measure--for this majority Of
issues listed upon the New York Stock
Exchange-market quotations are below
what intrinsic value warrants. This Is
the natural result OF more aggressive
ness upon tho bear than the bull side Of
the market. u is not that the actual
owners Of stocks have been desirous OF
selling, max ng sacrifices, and havs
therefore forced prices down, but tho
fact is that Quotations decline because
at no time and from no source has there
| recently come any consequential sup
port, any responsible maintaining bids.
| In any fair measure OF what goea
on in the market, II will be found
that there has been really littls
tangible activity-any activity upon
the part of real sellers or real buyers.
what We have been treated 10,
what has been the controlling ele-
ment, what has seemed to represent ths
markets condition, has been delusive.
Not the owners Of stocks. but traders
with picayune interests. have been able
to becloud the situation. They have
offered trifllng amount with hurrahs,
suggesting that they add unlimited sup
plies forthwith 10 their offerings And
against this manner OF tactics there has
| been no Offset whatsoever Nobody
owning stocks has shown any conh-
dence, any resolute opposition. to the
dragooning campaign. And the net re-
suit is-natural enough-discouraging.
Yet In the business world II Is difficult
to find any real reason for being dis
couraged Throughout the business
world there is conservatism. hesitancy.
even distrust. But IN actual business
measurement current volume is far
ness in the country. There is profit in
this business. And what Is Of conse-
quence incomparable-what may be OF
dominating consequence-is that tho
country has this year harvests unprece-
dented-no such money yield for agri-
cultural producers ever before has been
recorded 1t Is against this bulwark
that the professional spectators of Wall
Street go fitting. They lose-they must
lose. There never was condition equal.
never condition worthy OF relative men
ton. And what must be the sequel.
what forever has been in times past the
record, when the country's crops have
had such overmastering Importance?
Years ago We had enormous crops
worthy even TO be mentioned compare
lively with those OF the present, but
there Is this vital difference 10 be re-
garded-there was lesser market then.
there was no overdemand then, there
was overproduction then-while now for
every bushel Of grain or pound OF cotton
that this country can produce there is
immediate. urgent, profitable market de-
mand-home demand and foreign de-
mand competing. II is not so many years
ago when the American agriculturist
was the jest Of the business world-ths
national debtor. To-day the record Is
that he who was the debtor has become
the creditor-that he who was Pauper
now is Prince.
Among current developments we have
a bank scandal, embezzlernent, losses
tremendous, the depositing public ex-
plotted. Soothing explanation may be
forthcoming-but the fact Is that bank
conditions, banking supervision and the
banking situation generally has for rea-
sons Of this week sensational incident
to answer 10 criticisms that recently
have not been ggressiye-though when
Mr.. Morse and others were plunging and
failing there were exciting indictments
which now reappear.
Still in the midst Of prevailing discus
sion OF what are, justly O. unjustly. coll
sidered the rash and dangerous methods
of business pursued by some prominent
interests, we are apt 10 lose sight OF the
wis conservatism OF the great body OF
our financial and commercial establish
enthusiastically maintained not only In
the great fields of competitive effort but,
happily for the genera. welfare, in al.
most every quarter Of financial energy.
Convincing Xamples abound. AS an in
stance, / have i'm n''n4 a banking instl-
tulOn situated In i small town less
than a hundred miles from New York,
which towing wholly 10 diligent enter
prise and direct personal management
has accumulated a very large unds-
closed surplus-coincident with it's abiI-
ty not only to provide literally for the
necessities OF its own ncighborhood
under all the varying conditions OF bust
ness. but in periods of stress TO extend
liberal aid TO localities entirely beyond
the sphere of its accustomed operations.
It's situation is analogous to that dis
closed some years ago by the First Ma
tional Bank Of this city, which had. from
time to time, charged to profit and loss
out Of surplus earnings some millions OF
dollars, so that when tremendous loss
was suddenly encountered IL was able
to present balance sheet exhibiting
actually an increased instead of di-
minished reserve. This smaller instltu-
ton in proportion Co its opportunities
has not been less vigilant or less sue
cessful. Cases OF this character serye
inspiritingly 10 show how well founded
Is the prosperity Of the country. and how
little reason there is TO be apprehensiye
of those difficulties and disturbance
against which intelligent activity and