Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-04-07
REFUSE TO DECLINE
Stocks Establish High Levels
and Maintain Them.
EXPECT GREATER ADVANCE
Leading Bankers Declare Movement
Has Hardly Begun.
GOOD BUSINESS THE CAUSE
Return Of Broad and Wholesome
Prosperity Thought to Be the
Real Factor.
EXPECT GREATER ADVANCE
GOOD BUSINESS THE CAUSE
BY w. G. NICHOLAS.

NEW YORK. April cit Is nothing new
to put stocks up and they resolutely
refuse to go to smash, although majority
sentiment in Wall street is pronouncedly
on the side Of lower prices. Appar emily,
however, something more than majority
Is required to cause a break from the
high levels established on the six-week
advance. Indeed record prices on many
stocks were made on Thursdays sudden
bulge. There has occurred an occasional
reaction Of minor importance and at
times 1t looked as though the market
would topple. but nothing serious eventu-
ated. The street is genuinely puzzled
over the situation. To the unprejudiced,
1t appears that whatever favorable de-
velopments there may have been are dis
counted by the advance already estab-
lished, but many of the leading bankers
and spectators earnestly preach the COS
pei of still higher prices. and hold to
the opinion that the bull movement has
hardly commenced. They base this be-
lief on the theory that the country has
been quietly building up and getting
itself in shape for a grand industrial and
commercial revival, and that we are on
the eve Of a sensational boom. which will
infect every line Of activity. They treat
with disdain the widespread theory that
presidential years are necessarily periods
ness. and their statisticians have dug into
history to bring to light the fact that in
only one presidential year out of eleven
was there q bear market-that year being
1896. when the battle for the gold stand
ard was fought and won.
Whatever may be the deep-down and
controlling powers, the fact remains that
it has been found impossible for the bears
to get up a scare Of sufficient size to
brighten holders into letting go of their
stocks in large enough volume tn GO
severe break In prices. Spectres Of
war with Japan. the actual presence of
anthracite and bitumnous coal strikes.
the imminent possibility Of real trouble
between the eastern railroads and their
engineers. devastating floods in the Mis-
sissippi valley. strong likelihood Of
railroad congestion. owing to insufficient
equipment, some disappointment because
steel industry and acrimonious out
breaks among the political factions. are
some Of the reasons urged for calling a
halt in the stock market and consenting
to setback in prices. None OF these
factors. taken sinsly. nor all Of them
taken collectively seem to have the de-
sired effect. Holders stubbornly hold on
to what they have. and with strange In
difference to warnings go ahead and
buy more on the soft spots.
Agree Business Is Good.
odhhCio Oh O. 10 n AuACs AHOi o IL
This class of men are in close touch
with every phase and development Of
the business situation from one end of
the country to the other, and their view
point Is impartial. They are always on
the lookout for facts. for 1t is by this
knowledge that they are able to steer
their own course safely. In great ma
jority Of cases bankers agree that the
general business conditions Of the coun-
try are improving, and have been i'm
proving for some time. 1t is noted that
demands upon banks by producers and
manufacturers In all lines are increas-
ing; that there is greater activity in the
production of all kinds and varieties OF
goods that go to make up the merchants
evidence OF enlarged life and renewed
energy, beginning from the ground up.
From this development bankers argue
that their funds which have long been
idle will find increased and permanent
employment. and that the country Is in
for broad and wholesome return OF
prosperity. As noted previously in these
letters. this is really at the bottom of
has been the chief driving force for
weeks. Whether or not the advance has
been carried far enough as a prelim-
mary acknowledgment and recognition
of the good times ahead is the main
The stock market has been singularly
free from sensations. 1t settled into
| something of a rut, although dealings
continued to be on q large scale. The
bearish contingent made incessant effort
to break through what it looked upon as
| a thin crust, but always found solid
ground just under the surface instead
of empty space. as hoped for. AS q re-
| suit Of frequent failures to smash things
the bear leaders became cautious. al
though in no manner changing their
opinions. II anything. the short inter-
est Is now larger than 1t has been In
weeks. Should prices 60 higher this will
be an added element Of technical
strength. but in the event of a real
weakness 1t would add to the pressure
and materially help to bring about a
range Of lower prices.
Copper Market Strong.