The Washington herald., 1912-05-27
WALL STREET NEWS
Politics Will Play Important Part
in Financial Affairs This Sum-
mer Despite Other Assertions.
By THoNIAs G. sHoTwELL.

New York. May 26.-Although the lead
ing financial interests have dismissed pol
itice as a bearish influence on the stock
market. they have not by any means
discounted the possible political develop
ments on the other side. II is well for
the public TO bear in mind the fact that
politics can exercise a powerful influence
for higher prices, and that the chances
are Il will do so before the end Of sum-
mer Therefore. in eliminating politics
the campaigners for higher prices are
taking no chances, but are simply hold
ing one big thing in reserve.
Too much stress cannot be laid upon
the reasons outside Of politics for the
strength Of the market. These reasons
have grown stronger in the past week,
for crop conditions have improved ma
terially. In addition to the crops there
is the record tonnage of steel at the low
est prices in ten years. Money is cheap
in all parts OF the world, and is freely
offered for all kinds Of business enter
prises. Peace has been established in the
labor world in so far as IL can a1ect
business in a big way.
4 new Influence has come Unexpectedly
from Washington. The Canadian lobby
almost succeeded in having ships owned
Panama Canal but at the last moment
common sense has prevailed and these
ships will be admitted.
Means Advantage to People.
The result will be the building OF sew
eral important liners by American rail-
road companies to the great advantage
Of the railroads and the people Of the
United States. The ships must not enter
into cOnspiraCies TO hold up freight rates.
but as they had no intention OF doing so.
the restriction is not important. II is
one cheerful sign that the politicians
should have admitted that the owners
Of the American railroads are not anX-
ious to destroy their own business.
Settlement of this Panama dispute.
together with other favorable factors.
opens the way TO some railroad deals OF
the first magnitude. The SeabOard Air
Line deal has already progressed so far
that an official announcement should
come almost any day. Frank Gould Will
figure Nlargely In the new management,
but actual control will be in the hands
Of new interests that have been Induced
to go into the property by Mr.. Gould
The political situation Is such that II Is
impossible to take a fair view Of the
financial situation without a clear un-
derstanding Of what the politicians may
do Roosevelts attitude is much more
| important than net earnings just now.
T., r. to Issue Manifesto.
one Of his intimate friends and po-
Ttical advisers made the statement yes
| terday that Roosevelt intended to issue
a manifesto in the near future embody-
ing in his platform the views that have
been persistently reiterated In this col
umn for several years to the effect that
the government is equally guilty with
the trusts in what has been done In
the way Of big combinations, and that
there should be an amnesty proclamation
and a fresh start
II this view is really taken by RoOse-
welt. and his friends say that George
W. Perkins and Frank Munsey are sup
porting him because Of his positive prom
ise TO follow this line Of action. then
even Roosevelt will be hailed with re-
ioIcing by the business world. Business
men fear him because he is an extreme
radical They forget that Roosevelt has
had four years TO digest public Ques-
tions, and that his digestion has been
helped by social ostracism in his favorite
clubs Standing aside from the battle,
Citizen Roosevelt has been able to see
the mistakes made by President ROose-
welt. and being a clever politician has
apparently decided to take advantage OF
them.