New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-11-18
REVIEW AND DIGEST
Stock Market Irregular in Its
MOvements-The Tariff and
the European Situation.

Following the course or the sIoCh
market during the last week, nothing
Is indicated but daily uncertainty. Ac-
tivity and stagnation have alternateo'
and strength and weakness nave
shared IN keeping traders and ooserV-
ers in a wavering position regarding
the outlook for better or for worse
Generally il was accepted as 1ore-
gone conclusion that. with faVorapie
settlement Of the European situation
in sight and renewed purchasing Oh
American securities by foreigners, TINS
market would give a quick response
and prices would soar for time at
least. 1t was therefore Disappointing
on Thursday and Friday, when the
news from the Balkans was so en-
couraging and when London was a I'D
eral buver Of American securities, that
the New York stock market ignored
| foreign sentiment and assistance. MOI
/ only did this market fail 10 respond
| but it repudiated foreign influence by
selling off. In an attempt to account
| for its action the theory Of possible
money strain due to heavy December
requirements was used as an excuse
by market reviewers. But il is doubtful
If the money question has had more
! than passing effect on the movement
Of stock prices recently. The call
money market has ranged between Az
and 8 per cent, which scale of prices has
prevailed for most Of the time during
the last month. Only during one week
was the range higher. There has been
a constant interior demand on New
York banks, due to commercial and
crop requirements, but there seems to
be no cause for apprehension regard
ing a high fight of money rates. Loans
were called and considerable shifting
Of loans was necessary this last week.
but that is not unusual, as such action
has been necessary for quite a period.
The plain Interpretation seems to be
that for some reason the banks are not
encouraging a bull market, and the
pools and larger professional operators
are trading in and out in an endeavor
TO make small profits rather than bring
on a vigorous bull market in an en-
deavor to get public patronage. While
little has been said Of the effect Of
politics on the present market, 1t may
be as we'll to consider that view as 1t
is now presented. President-elect VIII
son has relieved all uncertainty in the
minds of the American people by com
ing out with a positive statement that
he will call an extra session Of Con-
gress in April to act on the tariff ques-
ton. He has made 1t plain that the
pledges of his party will be met, and in
consequence the country is facing an
exact rather than theoretical disturb
ance Of trade conditions during next
year. 1t will require time TO arrive at
an agreement in both houses Of Con-
gress on revision Of the tariff, and
the final preparation Of q measure
which will be passed and signed by the
President. During this period Of tariff
discussion the retail merchants Of this
country will hesitate about purchasing
goods, except on the hand to mouth
policy, on which the tariff is liable to
be reduced, until after the measure has
become law and the affected articles
have reflected the new order In a re-
duction Of prices. Manufacturers very
probably will find the volume of their
business curtailed, and the larger in
dustries, which now in a measure are
dependent on the tariff for their pres
ent scale of prices, will feel the check
which must be given TO this country's
progress for the time being. If the
Democrats act quickly and the new
order of affairs is put into execution
without tedious debate and delay, the
harm may be less serious, but only time
will tell that story. What the stock
market may do in the mean time is a
guess, which also must await develop
ments. AS 1t is said that history re-
peats itself, the action Of the stock
market after the defeat OF the Repub-
licans by the Democrats in 1856 when
James Buchanan, Democrat, was
elected instead Of John c. Fremont, the
Republican candidate, will afford some
interesting comparisons. In those days
the chief figure in stock market move
ments was Jacob Little, who really was
the first plunger in Wall Street. specu-
lation was in high state of action
after the election, and the nation was
filed with a speculative fever, while
the country was supposed to be pros
porous. The activity continued until on
December of that year Jacob Little
failed, with commitments estimated at
S10,000000 and actual LOSSES Of ST.
100000 The country continued its
speculative fever, however, and Wall
Street was soon in a recovered state
Of speculative activity, which made
rapid progress on the bull side. On
August n, 1857, the failure of the Ohio
Life Insurance and Trust Company,
which in its period was one of the
gigantic institutions of America,
brought a crisis in this country and
initiated the panic Of 1857. The pros
perity which was generally thought to
eYict was found Ia he resting on AN