The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-12-09
SANE DECLINE IN
EVERY DECEMBER
ARRIVE WITH MACHIyE-LIKE RE
GuLAHrTY. FOLLOWED nv
SHARP RALLIES.
AWAITING DECISION
MINNESOTA RATE CASE Is EX-
PECTED To BE SETTLED BY
SUPREME COURT FAVOR
ABLE TO ROAD
gy THOMAS C. sHoTwELL.

NEW YORK, Dec S.--If it were not
for the fact that the stock market
has a sharp decline every Decembe
the situation in Wall Street might be
considered somewhat dark. But these
declines come with machine-iike reg
ularity every December, and are al
ways followed by sharp rallies. They
come in bun markets and in bear
markets and are useless as indica-
lions Of general movements. 1t Is BY
M, means certain. therefore, thar the
ssafslpaign for higher prices has ocen
perfrfanoutIy interrupted, however un-
happy the margin traders may be.
Decision by the supreme court N
the Minnesota rate case Is expected
tomorrow. and THAI may furnish light
enough 10 decide which direction the
market Is travelling.
J4s-ti@sr- P3ts4--s4. the Supreme
court H. the only justice who has not
In some cases decided The principle
involved in the Minnesota rate case
! Decisions by the eight other judges
are surprislngly uniform. and unie2s
the Judges revers" themselves they
must decide the Minnesota case in Ia
4or u the railroad such decision
Ii also naturally expected, because tn"
Supreme court has IN all its recent
decisions arrayed itself squarely on
the side of honest business deals.
Chaos Would Result.
Should the supreme court decide
against the railro Dads in the Minne-
sofa rate case. a chaotic condition
would result that would justify liqul-
dalton of investment stocks. But such
a decision liz inconceivab bic, In view Oh
she past record Of the court, and SUCH
a contingency. therefore, Seems hard
Nv worth providing against Sach 8
decision would start attacks on IN"
railroads in every state in the Union.
and would upset business 10 such an
extent that tho war in Europe ano
proposed reform Of the tariff would
be matters 81 little consequence py
comparison,
has been due almost entirely 10 ac-
tixfty Of professional operators. some
Il f.laII;1F arr tlrers WHO held stocks nave
1,quidated through fear Of tariff re-
form. and a few big people have ap-
parentiv gotten out Of the market. tN-
peeting Just such liquidation mere
Is an evidence. however mat lho
strong interests who usually daHaln'st"
stock market movements and assume
leadership Oh important occasions
have changed their views. THESE peo-
ole expect to see IN the near future
higher prizes for stocks than any that
have prevailed IN 1919. They have
been surprised at the extent OF the
DECLINE. The optimistic views OK
pressed in this column have not been
altogether fulfilled, but there is no rea-
ean for withdrawing amy or them
T,hev are based on the big crops. on
ssa known sanity Of the supreme
court Of the United States. and on
belief that the war in Europe would
aaickly become a matter of history.
The reby enabling the United States 70
draw gold freely for import ms
mistake seems to have been made IN
expecting quicker action IMAM mas
been taken The trouble has been
caused by della and NOS by any
change for the verse,
stocks Are Cheap.
Judged by ali the standards %
value. and giving fun consideration
fo the European war, the money
market and th. Tear cI tariff ref orm.
gtacks are cheap. end many or them
ahsurt5lv chcap ono OF the big In
stirance companies has quit buying Sc
sarittes simply because II has pickcd
up so many bargains that all its eaRn
is exhausted, and all those securities
seized ar bargains can now be bought
cheaper than the company bought
thenl---but not OF the company. for
IL has full confidence in the genuine
ness of the bargains obtained at high
er prices AS for trading on margin
that is another proposition, for no
human being can tell when the stock
market has reached exact bottom.
But should the Supreme court de
eide the Minnesota rate case againsf
the railroads. as the professional trad
ers say will toe done, then everything
said here will have to be retracted-
for If the Supreme court joins IN tho
nopnlar crusade against business and
denounces men and enterprise simply
because they are successful then 1t Is
time To lose faith in American securi-
ties.