The Washington times., 1911-05-21
WALL STREET IS JOYFUL AGAIN
DUE TO THE LIGHT OF REASON
Long Resumption Activity Followed Understanding the
Pupt Oil DecionIhe Interesting Story of Com
Reversal
ny JOHN GRANT DATER,
Reuresentatfye of the Munsey Publication
specfnI Financial Rel


, enthusiasm over the favorable features
of the decision, implied by the broad
construction OF the act, instead OF the
narrow construction as applied In
earlier cases, the Street In general be-
gan to take a somewhat more judicial
view Of the question. Such was Its att-
tude at the weeks end, when the Gov
eTnment suit was filed against the So
called Lumber trust. In the commence
ment of this new action some ex-
tremists of course, saw recrudescence
of an alleged malevolent purpose OF At
torney General Wickersham to upset
things, as he was charged with oolng IN
the past; while others, and, doubtless,
saner minds may see in the new litlga-
ton a counter move to threatened ad-
verse legislation
Genuine Improvement
Aside from this as a possible consid-
Grafton in instituting proceedings
against the Lumber trust. it ought to be
apparent to every one that the courts
decision in the Standard Oil case applies
only to the Standard Oil Company, and
that the Supreme Court. while laying
down light of reason" as a guide,
grants no immunity TO corporations Vio,
lating the laws. They are TO be judged
upon their merits in each case, and the
''reasonableness'' of the restraint can
be pleaded in each instance, and the
principle of the broad construction OF
the statute, as laid down by Chief Jus
tice White in the case just decided. VIII
without question play an important part
with the lower court. The Union Pa
cific interests, for instance, DelieVe that
II has already won the merger case
for them. 1t may be regarded also as
desirable to test at the outset the oues-
ton of undue" and ''unreaSonaDle re-
straint of trade on which matter Presl-
dent Taft has expressed some dennite
opinions
The Improvement in sentiment en-
Rendered by the Standard Oil decision
was genuine. One cannot question
that, nor Is confirmation OF the fact
confined alone in the sharp adVance
ing to note in this connection that
the effect of the trust cases was pre-
cisely that which some very impor,
tant banking interests had predlcteu
as far back as February. whlch was
that they would be interpreted faN-
orably in the market, whatever the
outcome. In addition to the immeol-
ate response in the market, however
there has come a note of encourage
ment from many OF the leading mer-
chants of the country as to the bene-
fetal influence which must follow the
elimination OF these special restraints
upon industry.
Better Industrial Tone.
Sentiment plays a very important
part in the concerns and operations OF
commerce and sentiment has undoubt-
edIy been favorably impressed by the
court cases. This Is noted already
by the leading trade authorities. For
instance, Dun's Review, in its issue
today says: Its influence (the court
decision) is felt to a moderate extent
in the leading trades and Industries
For the first time in many weeks the
reports from the leading trade centers
are more buoyant in tone, though it
would NOT appear that the actual
gain in the volume of transactions
has been much. If any. This improve
ment in business sentiment appears
in the reports from the iron and steel
trade where, in spite of continued
contraction and price concession in
pig iron, a better feeling Is noted
with some increased orders from the
railroads. 1t also appears to limit
ed degree in the textile market which
reports some improvement notwith-
standing the continued curtailment
due to high cost of production and
the conservative purchases by con-
sumers-"
so entirely taken up with the trust
cases and the improving market that
the other developments of the week
whether favorable or otherwise at
tracted little or no attention. or the
far as fundamentals are concerned,
predominated. For instance. the re-
ports from the growing crops were
generally satisfactory, and this, at
the weeks end. was true OF cotton as
we'll as of winter wheat and the vari-
GUS spring-sown cereal crops. May
and July cotton. to be sure, has sold
up to the highest prices for this sea-
son in thirty-six years, spot touching
1915 cents on Friday: but this is
oil ~ nf a
ring, and one who realizes how little
such advances benefit the Southern
planter and how much they disturb
the textile manufacturer and cotton
operatives. can only hope that the
new adventurer may fare as did the
celebrated Sul1y.
Trade Balance and Government Bonds.
In the matter of foreign commerce
1t may be noted that the complete
statement for April made public dur
ing the week bore out the earlier pre-
dictions of extensive exports. AS
matter of fact the total shipments for
the month, s15s, ZIG, are the largest
for April in the country's history. I'm
ports fell off, as was to be expected,
and the excess Of exports amounted
to $37, 7,s76,o94. This contrasts with ex-
cess imports for the corresponding
month last year or Soll,Soc: Inc coun-
try's credit balance abroad Is steadily
mounting. For ten months OF the fiscal
year to date the excess of exports
amounts to ;47s S3s, ,ss8, which compares
with excess exports of but $167, Ola
for the same period last year. 1t is
interesting to note that the excess of
exports for the above period this year
has been exceeded only three times In
the countrys history.
The outcome Of the Government offer |
ing of $4,000 900 Panama Canal per
cent bonds, lacking the circulation
privilege, announcement of which was
made during the week, is awaited with |