Evening star., 1912-09-15
POLITICS NO FACTOR.
Wall Street Ignores Condi-
tionS Out of Its Line.
BUSINESS NEWS IS GOOD
Security Market Tendencies Do Not
Change Materially.
VIEWS OF GEN. T. L. WATSON
Conservative Financier Says Re-
markably Favorable Natural
Conditions Exist.
BUSINESS NEWS Is GOOD
VIEWS OF GEN. T. L. WATSON
BY 81. ALLoNAY.

BY n. ALLOWAY.
NEW YORK, September Insecurity
market tendencies do net change ma
terially. Each successive day brings it's
quota of good business news; but Wall
street quotations stay unreflective. About
the only Way in which the stock exchange
is maintaining consistency is in contin-
ulnS to ignore politics, this attitude being
unchanged from the start of the cam
paign. One sentimental influence seems
somewhat to be figuring, however, in this
regard-for there appears to be developing
disposition upon the part Of various
important financiers to emphasize the
view that business has become SO
thoroughly divorced from politics that no
matter what political thing happens be-
twixt this and November there Is going
to be no disturbance of the commercial
or industrial world. This expression is
intended, of course, to be reassuring-but
there uniformly attends it a postscript
which proceeds to declare that under or
dinary circumstances the situation would
be otherwise-that, in a word a presiden-
tial campaign is normally disturbing
element. Laying so much stress upon
this as an exceptional season in such re-
gard rather tends to challenge cOnserva-
tive opinion-for while up to this time
the expressed theory has we'll proved
itself there can be heard here and there
emphasis laid upon the criticism that the
campaign has yet a good many weeks to
run-with possibilities that the country
can become exercised over at least two
International matters.
Still, when some quotations yielded
rather abruptly in the midweek there
was no attempt in any quarter to at
tribute the recesSionS to any other cause
than tightening money market. just
why any ybody should affect to grow nerv-
any broad way, is difficult to compre-
hend-the banks of the United States
being in stronger position now than has
been their good fortune at this time OF
the year for long time past. There
will be tremendous demand for money
supplies wherewith to harvest and mar
ket the years phenomenal crops. but no
fnancier of national status can be 1ound
who has any doubt as to the entire COM
potency of the banks to meet every re-
quirement with readiness and without
any touch of embarrassment. Europe
is likely to return vast volume OF funds
due here Gold imports are probable
and they may extend to large volume.
Uncomfortable Developments.
1t happens that two OF three uncom-
Portable financial developments are being
recorded-extravagantl capitalized In
dustrial corporations coming to grief.
Identified with these enterprises are the
names of rather long list of eminent
CAPITALISTS, too Oversanguine antici-
pations of profit would seem to have
permitted lax methods OF management,
and at least two conspicuous instances
of receiverships bid fair to expose con-
ditions which may be disconcerting to
investors who bought these particular
t1,1 hot
they had exceptional banking con-
uections. This opens up. of course, the
opportunity for much pessimstic utter
ance. some critics making bitter on
slaughts. Yet even in these extreme
cases it is probable that much worse is
now being said than the ultimate dis
closure of facts will warrant.
AS to the industrial world as a whole
it is undoubtedly in healthful condition.
Apropos of what the situation develops
cogency in specific expression like the
following. which I make free to quote
from Gen. Thomas l.. Watson, a Wall
street financier of conservatism:
First we have unprecedentedly favor
able crops as a whole for corn is making
such progress that bumper yield is as
sured, while cotton has advanced so far
that estimates of the output range from
L.. 100000 to 13,OOO.OOO bales. These agri-
cultural products will be marketed at fair
IL
of the soil promises to produce new
wealth to the extent Of from nine billion
TO ten billion dollars. There Is enough to
warrant genuine and prolonged business
revival. But of late tie strength OF the
position has been increased by heavy
harvest damage in Europe from excessive
moisture. Therefore we are assured of
a large foreign demand for our food
stuffs and certain customer for our sur
plus cotton. We may. therefore, feel Sc
cure of the prospect of long continued
favorable balance of trade. Such condl-
tions have in the past invariably inspired
American prosperity and expansion. Their
stimulating effects will be felt in home
markets bare of goods, and that have
been going through a period of liquida-
ton and economy of two three years
in fact, with occasional Interruptions, since
1907. The ousburts of activity in iron and
steel-in which industry capacity is being
worked to its possible maximum. and in
which for many lines of manufacture no
more orders for this year can be taken
is due to the foregoing influences. A like
condition exists in electrical manufac-
ture, equipment companies are filed with
orders for months ahead, textile manu-
features are bettering, and in nearly all
directions trade reports indicate the pow
erful working of the remarkably favor
able natural conditions that exist
Elements of influence.
Epitome such as Gen. Watson thus
presents crystallizes what eventually must
prove elements Of potent influence in the
security market, just as in all other parts
OF the business world; but it has to be
realized by attentive observers that for
the immediate present at least Wall
street is like to stand apart from the
rest of the country-for instead of dis
counting expanding prosperity the stock
exchange is devoted to playing the wait
ing role. There is even basis, l appre-
hend for the belief that some of the most
Influential of our financiefs are, in
deed, inclined to help along discourage
ment, and to work even for substantial
decline In market values-having the
opinion that plans of buoyancy can be-
come much more effective, broader and
bigger Il the market be held in check
for yet awhile. till final election results
are known. till there be no opposition to
the upbuilding campaign based upon
widespread national prosperity.
If meantime there be raids which may
temporarily force current quotations
downward it will, beyond preadventure.
be the part of wisdom to buy standard
stocks whatsoever they seem most
friendless.