Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-08-04
LOOK FOR ACTIVITY
Increase in Business Expected
in Stock Market.
CONFIDENCE Is GROWING
Development Throughout Country
Being Felt Among Traders.
INDUSTRIES ALSO IMPROVED
Reports From Most of Them Show
Conditions to Be Favorable
and Increasing.
CONFIDENCE IS GROWING
INDUSTRIES ALSO IMPROVED
BY w. G. NICHOLAS.

BY w. G. NICHOLAS.
| NEW YORK, August Embarrassing and
broadening activity is the feature of the
stock market. The improving business
conditions and the growing confidence
which have been developing throughout
the country at large at last make their
effect felt in Wall street. The stock mar
ket has been very slow to respond to the
favorable conditions elsewhere, but Wall
street is usually slow. contrary to the
commonly accepted theories In this
spect the market is extremely deceptive
1t takes long while for the great bank
ing interests and the powers that con-
centrate around them to come to a de-
cision to what the future holds out
for them and the country at large. and
, these long periods which are taken for
| consideration OF the grave problems at
Issue are not infrequently msconstrued
| by t..e public to mean hesitancy pessi-
| mism. After srch time is given for the
weighing of conditions and tendencies a
position is slowly taken, and then when
] the decision is finally reached very sharp
action In the stock market often follows
| 1t is then that a bear movement or bull
movement starts in real earnest Months,
and sometimes a year or more. are con-
| Sumed in making up the mind OF Wall
| street what is the proper course to pur-
sue for long campaign.
| In the present instance Wall street and
| the stock market have been apparently
at a standstill for many weeks. As
matter of fact, the seeming hesitation
was merely time taken for thoughtful
consideration Of the Importance of con-
ditions which looked almost too favorable
1 to be believed-Or. at least. to be ac-
cepted without looking carefully at the
situation from all angles. The verdict
| has been that the period has arrived
/ hon will hn Cpfn a 70 10
a forward movement with confidence in
! the future. All through the month of
July the market was stagnant Impa-
tient SPECTATORS and wearied brokers
talked as though they thought Wall street
was dead and only awaiting burial.
These dull seasons are periodic with
! every summer, but this year the apathy
had deeper meaning than the absence
| of leading operators and the desire for
rest through the hot weather. Under the
| surface great forces were quietly organ
| izing. Every day witnessed the develop
ment of some encouraging condition in
| every branch Of industry. The movement
proved to be widespread, and to fortify
| the growing desire for large activity
came assurances of bumper crops. From
all indications the United States will be
able TO say this year that 1T has broken
all records in the abundance and value
of farm productions. This was the one
thing that was waited for with keenest
| interest by the great powers behind the
/
is eventuating. Prospects could not well
| be better.
Advance Is Tendency.
All these good things are at last begin
| ming to be reflected in the stock market.
| AS yet there has been no sensational
| advance in prices, but the tendency is
| unmistakable. The ground beneath the
| feet pulsates with energy. and the air Is
| becoming electric with the impulse to
| start something and do something. 1t
| is one of those sensations which every
| body feels and understands, and for
which many explanations are given The
| fact is the country has had long rest.
| 1t has been economizing and saving more
money and was never SO full of resources
| as now. The situation is dead ripe for
action, and the stock market is begin
| ming to reflect living conditions. 1t is
burying the past depression and is turn
| ing hopefully toward a bright future. Po-
htical developments have also contributed
| to confidence. This has been more marked
during the last day or tWo-since it has
| become known fairly well what the presl-
| dental candidates will say in their let
| ters of acceptance on many of the i'm
portant issues 1t has become known
definitely that there will be no wide
| divergence of opinion on the tariff ques-
ton. All hands want revision, the only
| apparent difference being the road to be
| Travelled and how far to go. The sug-
gestion advanced by Gov. Wilson that the
| most satisfactory way will he a reduc-
ton IN duties OH graduated plan
| seems to meet approval. although 1t is
certain to be confronted with strong
| objections from many quarters. The
theory is not new one, and there are
those who contend that the better plan
| is to cut the eats tail off at one ampu-
tation than to reduce it by inches-an
| inch a year. However, in these days of
| cocaine and other pain-killing drugs, the
| horrors of surgery are greatly softened
However that may be, the feeling for
| the moment is that of satisfaction that
| there is to be chance of radical re-
| vision-no rough-housing, nothing that
business cannot adjust to with a min
| imum Of disturbance.
| Spectators have been INDUCING in a
good deal of thought and discussion as to
whether the big bull movement which
most people seem to think reasonably
certain to take form. will begin from
around the present levels, or after a
break from present prices. AS a rule,
bull campaign are organized and taken
in hand by great plungers or by power
full syndicates with headquarters in
strong banking houses In most such
cases it is the desire of the prime movers
to accumulate great lines of stocks at
| low prices. To do this, it was the GUS
tomary thing to raid the market, bring
about a grand shake-out of poorly mar
| gined holdings, and buy in the sacrificed
property. BY this device the leaders or
| the play were enabled to start in on IA
vorable terms. Generally speaking, ma
npulators do not like too much COM
rany'' at the outset. They do not want
| to be obliged to stand in the gap and pay
| the profits of multitude OF little fellows
| who unload at high prices. The time the
big fellows want company is when they
| have put the price up and are ready to
unload. The purpose of all bull manipu
| la ton is to make high market for Sc
| curities and property bought at lower
| figure. To that end the public is invited
| to participate when the stage is about
| to be reached for the huge profit-taking
| by the insiders.
No Banking Leadership.
On this occasion. however. there does
not appear to be syndicate or banking
| leadership. in the accepted sense Of the
| term. The great banking institutions are
connected up with scores of underwriting
combinations which have on hand ma sses