The Washington herald., 1911-02-13
UPWARD TENDENCY
rs SEEN IN STOCKS
Trend of Prices Generally Oh
the Advance.
PEsSIMISTS HAVE DONE GOOD
Attitude of Spectators and Some
Business Men Has Aided in Spread
of Economy Over Country-Com-
modify Prices DeclininE-FOreign
Trade Improvement Gratifying.

Ne" 1OTk, feO- LII CHdIdCler VI
the stock market and the state of busl-
Eess unit remains unchanged.
The situation is one whose face IS
turned toward better things. Where de-
velopments have been continuously IA
vorable from the point of view of one
who looks for broad, substantial, and
progressive improvement in conditions as
distinguished from that of the mere
speculator for a turn" in stocks, and
where even as concerns the speculative
stock market itself, highly satisfactory
answer has just been made to a pretty
severe test of the markets underlying
strength and stability.
There was through last week and part
of the week preceding a very consider
Eabae liquidation of speculative holdings
OF securities. Many of those making
these sales professed themselves con-
vinced, and with undoubted sincerity,
that the general tendency of the market
was upward, and that decidedly higher
prices for stocks would be seen before
the year was out: but they declared
themselves unable to resist the tempta-
ton tc take profits on their ventures,
and sold their stocks in the hope that
something would turn up to enable them
Pessimism Has Prevailed.
Not only many SPECTATORS, but many
business men, have been persstently
pessimistic in their market and financial
views ever since the decline in the stock
market came to an end in midsummer
Of last year
Along with the serious. honest and
earnest doubt entertained by a good
many people regarding business and
financial conditions, as they appeared
some time since, there has been a species
of dishonest, manufactured, and artificial
pessimism.
Now, it is undeniable that to a certain
extent policies like these. even if pushed
tc eXtravagant lengths in some in
stances, have fulfilled a useful public
service. They have aided in the spread
o. economy over the country. in the
curtailment of speculation in commodi-
ties that a short time since was one of
the greatest fundamental evils of the
situation. and have generally helped to
bring the minds of people down once
more to sane and thoughtful level.
But in this great, rich, energetic, and
forward country of ours ideas like these
cannot maintain a hold upon the con-
duct OF business affairs an hour longer
Time Money Easy.
Coming down to actual conditions at |
the moment It can be said that there has |
not been a single occurrence lately to
.-hange the favorable prognosis made by |
discerning bankers and economists about |
three months ago Although business
Is enlarging everywhere money on time |
can be secured at easy rates, and nobody, |
not even the worst stock exchange |
bear" talks of a possible money strin- |
gency.
a healthful and gratifying decline in |
commodity prices started some months |
since with the collapse of the specu-
1ation for the decline in grain. and this |
has now embraced every one of the lead |
ing staple articles and has latterly been !
conspicuously effective in the case of cot |
ton, coffee, silver, tin, eggs butter. and |
other prime necessities of life. with the |
result of releasing money for legitimate |
business us and lowering the cost of |
raw materials needed in manufacture.
Although the national and international |
investment market has since the begin
ming of the year been called upon to alb |
Sorb an exceedingly large amount of new
security issues, TIE prices for these suCur-
flies are still advancing, and there is
visible return on the part of people to the
other low interest-bearing but high-grade
investments instead of the higher inter
est-bearing but more speculative secur-
ities favored short time since. The
true meaning of this development may
be more apparent a few months from
now than it is at present
Foreign Trade Improving.
This meaning is of course that rail-
way. Industrial, and other companies that
have for long time past been unable
To raise money for business purposes
are now finding II comparatively easy
tc do so: and the inevitable consequence
must be m due time increased activity
IN the general manufacturing world. The
iron and steel trade is improving daily,
not in a hasty, speculative, and I'M
natural way, but slowly and conttn--
uousIy, as it should The OUTLOOK
for the years crops is highly prom
ising, so far as it can be seen; and
the general observation still has to be
made as to the business condition of
the country that no great or long depres-
sion in it can take place while the
largest business of the country-that OF
agriculture-remains as prosperous as
It has been in the last two years.
Meantime. contrary to the expectations
of many people, the country's foreign
trade is keeping up at an amazing rate
In the last four months of last year
our exports began to enlarge decidedly,
and this increase, coupled with a con-
falling off in the volume of (
imports, changed a trade balance which
was against US in the summer months I
TO one heavily in our favor for the year
as a whole. A fear all along has been
that in the present year our exports (
would again tend to decline and our i'm
ports to increase. This, as will be re- {
membered. was the experience of the [
earlier months of 1910. But from the data
how at hand it strongly looks as If the
magnificent record Of last November and
December is about TO be repeated.
TTTFn nv TDuANT