The Washington herald., 1912-05-20
WALL STREET NEWS
Year of Big Things Predicted in
Wall Street-Steel Industry e..
Enjoying Boom Business.
By THOMAS c. sHOTWELL.


New York. May ls-This is going to be
year Of big things. and Wall Street is
preparing 10 do its share. The greatest
bull market in the history of the country
is planned. The foundations are laid
deep in undisputable fact The structure
is being reared slowly but with such
deadly certainty that the most confirmed
pessimists are being converted one by
one as the spring progresses The public
Is taking but little interest IN the market
yet, but the public never cares to buy
stocks until they are so high that money
is pretty sure to be lost. Only specu-
lators and other reckless persons who
looks a few months into the future ever
buy stocks when they are worth buying.
The crops this year promise TO break all
records. with abe single exception Of win
ter wheat But the destruction OF 5000
600 acres OF winter wheat has been
turned to a bull argument because that
land may be planted In corn oats, and
other crops more valuable than wheat.
The acreage of winter wheat that is
left is to be a record-breaker in point of
acreage yield. Conditions could not be
better for spring wheat. and that is a
big factor when one considers that for
two years the spring wheat crop has
been a failure. The railroads are buy
ing equipment as rapidly as possible, but
the mills are crowded to capacity, and
are unable to turn it out as fast as it
will be needed.
Therefore, an addition to other big
things this year. next autumn will see
the biggest congestion Of freight that
this country has ever experienced. All
this, Of course, is based on the assump-
ton that summer will come and go about
as usual
Big Steel Business.
Another big factor is that the Steel
Corporation is doing the biggest business
in its history, with millions of tons OF
new business crowding for execution.
This fact is made all the more important
because this tremendous tonnage Of bust
ness Is being transacted at the lowest
prices in ten years. Even with the low
prices, the Steel Corporation is able to
earn its dividends. With the increase OF
from 81 to 81 a ton that will be made as
the year progresses, there will be some
thing left for surplus after the dividends
are paid.
But more important than the dividends
of the Steel Trust, is the fact that the
railroads are buying this immense ton
mage OF steel at such low prices as to
make It the equivalent OF an increase
OF freight rates. Freight cars that cost
N.1o0 and $500 q year ago are being
purchased now for about 800. This heavy
tonnage Of steel is important also be-
cause the price Is so low that the most
drastic tariff reform proposed even by
the Democrats could not reduce the
price OF steel
Do Not Fear Roosevelt.
Another big fact in favor of an ad-
vancing market Is the confidence that
the high fnanciers have in Roosevelrs
ability to make the people believe be-
fore election that he intends to do things
that he knows perfectly well he has no
idea Of doing after election. Wall Street
Views the possible election of Roosevelt
with equanimity, knowing that he never
hurt anybody while In once.
There is a distinct understanding IN
Wall Street that Perkins, Munsey, the
McCormicks, and other fnanciers know
exactly what they are doing when they
stand for Roosevelt. But the political
has become such that II would
be impossible for anything worse to de-
velop.
Another big fact is the establishment
Of peace in the labor world. The an
thracite miners have agreed to make q
treaty lasting four years. The railway
locomotive engineers and firemen will
get but slight advance In wages and
will settle their troubles for a long
period These labor troubles never were
really bad. although the pessimlsts mag
nifed them beyond reason.
The high cost OF living Is worrying
good many patriots, who bIindly seek
for some one to blame. The Methodist
bishops In convention have blamed the
trusts, and that is q sample of the I'M
reasoning criticism that has been In
dulged In In the last few years. The trusts
are to blame to some extent, no doubt,
but Providence b the chie1 offender this
year. because II the crops had not been
destroyed last year in all parts OF the
world, food would have been very. ma
terialIy cheaper. The Republican party
gets all the credit for big crops ana the
trusts get all the blame for crop fall