The Washington herald., 1911-10-16
WALL STREET NEWS

| New York, Oct. l5.-The feature of
stock exchange transactions last week
was tendency toward contraction in
the volume of dealings and toward stead
mess in the movement of prices. The
J comparative equilibrium thus experienced
was. however, an equilibrium accom-
panied with strength. Oftentimes when
stock market becomes quiet it is quiet
in such way as to convey the idea that
| it rests on no very firm foundation.
| The general market may hold within
narrow range, but there are many indi-
vidual instances of recession and exhi-
| bltions of what Wall street traders call
sOftneSs. Now, on the present occasion
q distinct characteristic of the market
has been a firm maintenance of prices
| as a whole, but with an upward ten
dency showing itself in many places.
The rise in some of these places may
probably be for particular reasons or be-
cause pools and spectators find that the
| floating supply Of the issues concerned
has become so small that comparatively
| large advances in their prices can be
easily engineered. Still the indications
| thus afforded are worth attention, par
ticularly when they are accompanied.
as they are just now, with some signs
for bonds and for investment securities
proper
Market, as n Whole, Stable.
Also. from a strictly speculative point
of view, Wall street was quite inclined
last week to pay some heed to the fact
that while one OF the three most promi-
nent trading stocks on the list, namely,
Reading common, was depressed, IL did
not weaken the general market at all.
The inference was that whether this de-
cline was due to mere speculative attack
on was due to the possible liquidation of
a block of stock it was not of nature
to justify sympathetic selling in other
directions: and there were those who
argued from this that the stock mar
ket had really turned its face toward
better things
The only explanation for the decline
in Reading that was offered in the finan-
Cial district was that it was because
the government in its current attack upon
the anthracite mining interests had done
so under the antitrust law: but IL will
be remembered that the government has
been beaten on this issue in the lower
courts just as it was beaten in its at
tempt TO enforce against the coal roads
the commodities clause" of the Hep
burn law: and II is the consensus among
=
Surpeme Court will reverse the decision
Of the Circuit Court against the gov
ernment that has already been pro-
nOunCed. However this may turn out. il
it impor ;ant to note at the immediate
juncture that the fall in so active
stock as Reading did not affect other
stocks. This is the first time since June
that such an observation of the stock
marke, could be made, and it seems to
indicate some fundamental change. even
If but mOmentary, in the financial
temper
Whatever Improvement in the bond
market has come about and in the de-
mand for high-grade investment stocks
ls in no way great. At the same time
there is no doubt that sooner or later the
market for securities will begin 10 be
affected by what may be styled the un-
easiness Of money. Despite the active
movement of the crops to market. money
is piled up idle in large sums in every
bank and place Of deposit in the coun-
try. Within few weeks these sums
will he increased by the return Of funds
to the financial Ccnters for the annual
crop moving. Now. experience teaches
that unless the forcboding of national
calamity becomes ovrrpowcfIng. idle
money like this will. after a time. be-
gin 10 flow into investment channels.
Just as il is already flowing from this
country to Europe. where bids for it's
uSe are being made. Probably this Is at
the bottom of the better feeling exhibit
cd in the bond and investment stock
market.
Europe Feels More Easy.
The Moroccan affair has ceased TO be
any factor whatever in the financial
markets, and the influence of the Turko-
italian war, which was small at most,
has now become reduced to practically
nothing. The financial strain is over in
tn" foreign capitals. even if money still
commands higher price there than it
does in our own country. With liquida-
tion completed here, with ease in money
coming to he a steadily increasing force,
with the results of the seasons harvests
known. and with extraordinarily light
stocks of merchandise on hand, an up
ward movement in business and finance
might theoretically occur at any time
An element in the situation of the ut
most Importance is the great cotton crop
OF the year, which II almost certainly |
seems will be the largest in the country's |
history, and whose promise of abun- |
dance has already caused so great a de- |
cline in the price of cotton as to bring !
immense relief 20 the cotton manufactur- |
ing trade.
For the time being however, the specu- |
Iaio-S seem 10 nave no desire to buy |
stocks in anticipation of an upward |
movement. and their usual course under |
such circumstances is to wait for some |
occurrence or striking development which |
1t can be reasonably argued will provoke |
public enthusiasm on the buying side. |
1t is to be admitted tnat as yet there has |
been no such occurrence. and it must |
also be conceded that any prospect of |
such enthusiasm is heavily CIouded by |
the attitude toward business and cor
pOratiOns assumed by the administration.
There are many business men who say |
they would be willing to go ahead with
things with a fair amount OF energy If !
they really knew what Mr.. Taft's "atti-
tude" was.
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