The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-11-18
|sDN's ACTION
PUTS 'EM At REST
91unsrANTIAL BUSINESS INTERESTS
PLEASED Ar SPECIAL
SESSION.
TIM ETC RADIUS T
gaNsEsToRs WILL DESERT SECURE
TIES AFFECTED BY THE
TARIFF AND SEEK
SOME OTHERS.
TIM E TO READJUS ]
~.,x THOMAS G. sHoTwEI.L.

NEW YORK. NOV. l1'~~bS an
nouncing that he will call a speciai
session Of congress early next year
I President Elect Wilson has pleased
the substantial business interests. The
Republican party has been pledged
III tariff reform and monetary reform
for years. but has done nothing TO
gafISfy the public. The radical Gle
nents Of both old parties went over
70 the se-calls.d progressive party, ana
\ the Democratic party rs now saiets
cane end conservative BY his prompt
acsien in this important particular
president Wilson has established him
aelf and his" administration in the
good graces of even those who voted
against him through ancient fears 'of
the Democracy.
That the stock market viii not no
broken by tariff reform was made
clear on SATURDAY, WREN sharp re-
/ royery followed a break in the mar
ket caused by raiders, This special
session has been expected for weeks,
and IL is no reason for selling stocks.
! Even admitting that the big people
are ,aisr,leased at tariff reform, self
Interest would compel them to sup
port the stock market throughout
1 the winter The stock market ls the
mother of all productive business, II
ii were to waiver because ot tarlft
reform. consumers throughout the
world would instantly jump to the
conclusion that tariff reform would
1 break prices Of commodities. and the
food If orders now coming to the
great manufacturing concerns would
\ he rut off The big people in the
stock market are the same persons
that own control Of the big manu-
Y featuring plants, and thus their ordi-
nary business Judgment VIII compel
them to protect the market from any
raid
Time To slip Out.
Al the same time II win he just as
well for the public To begin readjust-
ing investments, slipping out Of those
Il stocks that are largely dependent on
high tariff and reinFesting in those
( that will not he affected by reduc-
/ ton of the tariff.
Much difference Of epinlon Exists
az 10 how this classification of stocks
should he made Nearly everybody
would Immediately put the Steel esri
poration shares in the list OF those
/ to be liquidatej. but the Steel cor
Il poratIon already sells oHe-tlfth of III
PRODUCTION abroad in direct compe-
tifiun with foreign manufacturers.
poras1on will not be hurt by tariff
reform. because II manufactures 50
much cheaper than the Independent
sseei companies that these indepen-
dents will he hurt. and their bust
mess will fail To the big company
which viii thus have an enormous
& Increase In the volume OF it's bust
4 ness that will counteract any possible
reduction in net profits per ton.
Among smaller companies. how
ever the line in more clearly drawn
& President Charles VI. Schwab of the
Bethlehem Steel company, has an
4 nounced that he will close his mills IL
\ the proposed reduction of steel tariffs
Ii made. Such being the case. il
I might be we'll to take Mr.. Schwat
at his word, and sell his stock. Stocks
that viii be helped by tariff reform
arc represented by American Can
4 which will find its raw material re.
ducei in price Stocks like the United
Il States Rubber will not be affected
either adversely or faVorably. because
that company has such Il large foreign
business that it Is not important ~ ha'
4 tariff rates are charged since none
Of the foreign companies can com
pete with IT, even in their own ter
ritory.
Still Awaiting Decisions.
Tomorrow Wall Street will worr,
again over the Supreme court de
cisions. The anthracite decision. i
rendered, cannot hurt the market
but may help 1t by forcing distribu
Il ton of the assets of the Readin,
! company. The Union Pacific decisior
should not have much influence elthe
way. The Minnesota rate case, how
ever. Is of extreme Importance, 70
Z on that decision depends the questio,
as TO the right OF the State railroa,
commission To interfere with inter
81. state rates. and the right to the rail
roads 10 earn enough to pay dividend
and make proper improvements an;
extensions.
Decision is expected this week b.
the arbitration commission, in tn
matter of advancing the wages of 10
Ne connective or gIneeTS, IT has been I'm
4 derstood for more than a week /,
Wall Street that the commission ha'
81 decided 10 permit slight advance
Il Fundamentals Of business were neve
no strong as now in this country. Tn
Ieinand for money for crop moviu
NJ purposes is beyond all precedent. TIL
banks are carrying the peak load o
NJ loans because actual cash is bein
handed out 10 farmers for their pro
dnce. This cash will soon find ii
BIZ way back into the banks and Will
hieher money rates may be expecte
u before the end Of the year IL VIII b
H Found that stock frices Will advanc
II along with the price of money,