Evening star., 1912-07-21
INTEREST |NMORGAN
Wall Street Wonders Why Fl
nanoier Is Returning Home.
NAY HELP BULL MOVEMENT
Believed He Will at Least Give In.
dorsement to an Upward Market.
CONDITIONS GROWING BETTER
Business In General Shows More I'M
provement Than It Has Any
Time This Year.
NAY HELP BULL MOVEMENT
CONDITIONS GROWING BETTER
BY w. q. NICHOLAS.

NEW YORK, July 2O.-Wall Street at.
taches Importance to the return of J.
Pierpont Morgan, who is scheduled tc
| arrive here the early part of the coming
week. Announcement Of his departure
from the other side took the street by
surprise. as it had been announced only
| Few days ago that he would prolone
his stay In Europe until September
What brings him here?" brokers are in.
quiring. Mr.. Morgan has not taken an
| active part in business affairs for at leas,
two years, and that he should now find
It necessary to come home strikes one as
| being at least unusual and entitled to
comment and some surprise. Mr.. Morgan
| has been hearing great deal lately abou,
the improved conditions in America,
| and has been urged to give at least his
| market movement Naturally q bull on
| America, Mr.. Morgan, it is said. has
given friendly ear to this suggestion, but
deemed 1T only the part Of prudence to
Ing decision. It is understood that he
| Is not entirely satisfied with the bond
| market, and would like to see the mass
of undigested new issues reduced some
what before giving his unqualified ap-
proval to q campaign in the stock
| market.
The stock market is in unQuestioned
need of leadership. Professional senti-
ment is chronically bearish. except dur
Ing the actual progress Of whirlwind bull
campaigns It has talked and acted bear.
ish for several weeks. and q reaction of
to 10 points in prices from the high fig
ures of early June was a result. There
was a big general. although scattered,
liquidation of weakly margined and timid
accounts. 1t could not be ascertained
fnn IN
terests had parted with stocks to any
very great amount. although profit taking
by some of the big plungers was in EVIL
dence. Several of the acknowledged
nLal vacations. For the most part, how
ever. the same people. left undisturbed
their principal holdings.
The market bumped on solid ground
early in the week. 1t was proof against
bearish assault, and the discovery was
made that stocks had been "oversold"-
that the bears had gone too far and cre-
ated a dangerously extended short inter-
est That gave the bull party decided
technical advantage, and a rally was the
natural consequence Sentiment had be-
come altogether too unanimous on the
down side. 1t almost invariably happens
that when everybody in the street thinks
and talks one way it is time for q, change
Many of the veterans in the street make
money automatically by betting against
for long time and then gets dull.
Actual Conditions Better.
Actual conditions that underlie the
stock market and business in general are
better than they have been any time this
year. Factors that entered into the cal
culations of the big buyers few months
ago are no longer speculative. for the
~ no P1r
is meeting the most hopeful estimate Of
early summer and late spring. It ts now
plain to be seen that unless something
entirely untoward happens, farm pro-
duction will beat all records. Prospects
are that the tiller of the soil will realize
at least $1,OOO,O0O,OOO more than last
year. a gain of more than 10 per cent.
The money situation is good as could
be desired. There will be plenty Of capi-
tai available for the moving of the crops,
and In all probability something left
over to finance the stock market. Some
of the banking institutions may be
cramped by inability to work of bond
issues they have underwritten, but moth
ing very serious is looked for in that
quarter. The undigested portion of these
bonds is slowly finding its way into the
strong boxes Of investors 1t Is q good
thing the market is heavy in that quarter,
else voluninous new issues might be put
out to really enrbarrass the situation
later on.
Railroads are making heroic efforts to
meet the traffic pinch certain to be en-
countered two or three months hence
There is actual danger of a blockade
during the autumn and winter months.
Most Of the stronger roads have provided
themselves with rolling stock, but the
supply of cars will inevitably be insuffi-
cient to meet anywhere near the press
ure railroads will be subjected to. Car
equipment companies are being rushed
IN nvn I~,,A
that there is going to be a car famine
IN many quarters.
The investigation now going on in this
city for settlement Of the demands
OF eastern locomotive engineers for in
creased wages is giving the public a line
Of enlightenment on the railroad situ-
atfOnAOf which 1t was very much in need
1t is bringing out for the public eve and
ear the illuminating fact that railroads
cannot buy cars and maintain their lines
10 meet requirements unless allowed to
raise rates. The hearings may be said
to be the first large volley In the cam
paign OF education for the benefit Of the
carriers. Before the inquiry is finished
q great mass of hitherto ignored facts
OF great interest to the public will be
added to the total of human KNOWLEDGE
Some of 1t may reach the ears and pene-
trate the skulls OF statesmen in Washing
ton and state capitals.
May Mean Trade War.
The question of the $500, 600 600 Chinese
loan is too big to interest the multitude
1t Is something for the international
banking houses and financiers. The fact
which obtrudes itself most plainly into
view is that the money lenders are
scheming the best way they know how
to grab of advantages tantamount TO
usury, and that the crafty Celestials are
seeking to protect themselves and at the
same time get the cash. This great loan
Is not to the advantage of the peoples
0i Europe or the western hemispheres
In the long run 1t will promote oriental
industries and bring the countless hordes
OF cheap Chinese laborers into competi-
tlon with the high-priced labor Of Amer
lea and the mOdern-priced labor of Eu-
rope. There are those who look to see
relentless trade warfare between the
orient and the civilized countries of the
western hemisphere, within the next
tous than any seen in the worlds history.
Politics excite only mild interest in
wall street at this writing The feeling
grows stronger that Gov Wilson will be
elected, and some betting has been in
dulged in with decided odds on New
Jerseys governor Bets Of 5000 to s.. 600
have been reported. Some speculation is
heard as to the possibilities of an extra
session of Congress to revise the tariff
In the event Of the election of a demo-
cratic President and the control of both
branches OF Congress by the democrats.
Gov. Wilson has thus far refrained from
giving any indication of such a plan
OF the tariff issue be lodged with him and
his friends.
The bare chance that Congress will en-
act law for the abolition Of cotton