The Washington herald., 1911-02-17

New York, Feb. 16.-A clamorous de-
mand for a reaction in stocks that has
been heard for two weeks past from a
large body of spectators, both great
and small, was at last effective to-day
in producing the most considerable de-
cline in the market seen in any one stock
exchange session since the beginning of
the present year. 1t must be admitted
that from the technical standards set up
by speculative Wall street, this demand
was justified, and it is highly probable
that it will be found later on that the
concession made TO it to-day served a
useful purpose. During this period the
market has enjoyed a large advance and
lately has been called upon to absorb
great quantity of stocks sold by specula-
tors in the way of profit taking.
That it should finally yield moderately
to this pressure is no way remark
able, and. in fact, by generating new
buying, as it undoubtedly will, will be
helpful rather than otherwise. That the
market was in a mood to decline to-day
was plainly shown from the outset of
business, when several announcements
that were unquestionably in the nature
of good news" did not stimulate puc-
Chases. -
Railway War Settled.
Pre-eminent among these, of course.
was the final settlement of the weeks
shOrt-lved controversy over the control
Of the Missouri Pacific Railroad Com
pany. AS the result thereof this great
railroad company, which has the max
ings in it of one of the most successful
and prosperous railroad organizations of
the United States, is now at last on the
way to fulfill the destiny that nature
and common sense have marked out for
it. The developments in this regard haze
really been most favorable from every
stock market and business point of view
that Wall street has witnessed since jan
uary l. and in due time their Importance
will be realized.
Further, the speculative financial COM
munity was blind to-day to the ex
traOrdinarily gratifying character OF the
full January foreign trade statement
showing an increase in the total volume
of our exports for the month Of $66,TT7,O0O
as compared with so. 790, 900 the export
excess Of January a year ago.
The state of affairs last year at this
time was that for several months the
Country's foreign trade balance had been
steadily declining. so that in the second
Of imports was reported.
Export Excess Grows.
But the fall months last year witnessed
an export excess rising by leaps and
bounds which is being carried over into
the present year. as tc-day's statement
proves. 1t may be, as is stated. that this
Improvement is largely due to our in
creased exports of cotton. but it is also
due in material degree to the enlarge !
ment of our exports of manufactured |
products as distinguished from those Of
agriculture.
In the seven months of the calendar
year thus far, the export balance in our
favor is 1856, 100000 as against S193, 900 900
in the same period year ago Again.
the reduction in the Bank of England dis
count rate from to 81 per cent attract
ed no attention whatever in speculative
circles, although its meaning was not at
all lost among bankers.
Pursuant to its usual custom Wall
street attributed the break in the market
to-day to various absurd stories. The
truth is that the stock market to-day was
ripe for a decline, and that this was
accomplished in consequence of a bold !
and we'll planned raid by professional !
operators The essential facts of the |
present financial situation stand out no |
less clearly than they did before and |
they favor with substantial unanimity |
the constructive side of the stock market |
1t is these facts and not the varying sales |
or purchases of speCUlatCrs that in the |
long run make values.