Evening star., 1912-01-21
H0LD LDs MARKET IN CHECK
Bonds Must Be Unloaded Before
Stocks Can Move.
THEN IT Is A Toss-uP
Security Values May Be Doomed or
Bears May Be Allowed to Raid
the Market,
BY W. q. NICHOLAS.
Special Correspondence Of 1ns Star.

NEW YORK. January 20. 1912.
The problem Of the most vital interes
to spectators In Wall street may be com
pressed into the query. ''Wlll the stocl
market boom or bust. after the banking
combinations and syndicates work OF tn.
great crop Of new bond issues now beinf
harvested?''
It is q very delicate and uncertain prop
osftfon tho speculators are trying to solve
to their own satisfaction. A very grea,
difference OF opinion is found in trying tt
get an answer to the question. Sentiment
among the rank and file Of traders is al
most overwhelmingly bearish, and were
it not for the attitude of the banking in
terests there would be tremendous short
selling and possibly much lower prices.
AS 1t is, the representatives and mouth
pieces Of the banking and underwriting
element lift a warning finger and suggest
that speculators would be serving theil
own interests best by keeping hands OF
until the new bond issues are all brought
out and distributed. Already more thar
800. 900. 900 in new bonds and short tern
notes have been issued since the begin.
ming of the year. and enough more are
known to be on the way to swell the tota
up to almost II not quite $3.50. .O0O, 900. This
great mass of stuff Is due to come on the
L
Meantime, If conditions remain. as they
are, and as the bankers want them to
remain. the stock market is likely to con-
tinue dull and narrow, and without I'M
portant price changes. After that, 1t is
an open question whether prices go tc
pieces or soar.
At this writing the attention of the
powers that be Is directed chiefly to max
ing things easy for the manufacturers
and statesmen Of bonds. The bond market
is active and from what is heard at the
banking Offices and read in the inspired
columns of the financial newspapers. the
public has q gluttonous appetite for all
kinds Of goods OF that description which
bear the right trade mark.
Outsiders who try to float new bond is
sues meet with no success whatever.
They cannot break in. One branch of
what Representative Lindbergh describes
as the money trust" has that feature of
the situation completely in control-bot-
tied up and corked. No outsiders or in
terlopers are permitted to put anything
across" in Wall street that Is worth
having. This is a sad but undeniable
fact. The brand and trade mark must
be on everything that reaches the public
through Wall street channels. All goods
that do not have the right 20. K" blown
into the bottle are thrown ANONYMOUSLY
into the discard.
ing for a chance to get after the Wall
street money trust will have great trou-
BILE in locating responsibility. but the
trust Is there just the same. It 1s In
tangible to the touch, but its heavy hand
Is upon the situation. and Is never lifted.
The Wall street money trust Is merci-
less, infiexible and ravenous tyrant. yet
elusive as q Specter. When the Congress
committee tries to put its hand on the
monster 1t will not be there. There will
| I,- t%,,td Foo nd he Of n 0a
feeling OF an overshadowing presence.
That's where Representative Lndbergh
and his associates will land. The trust
will be doing business at the same old
stand.
Opposes Bear Campaign.
That is the influence which is at this
moment seemingly averse to bear cam
paigning in the stock market. But for
It's interest in hugo pending bond quota
tons 1t would not care a rap II stocks
were to break twenty points. Indeed,
there Is more than a shrewd sus icion
that the bulk Of the bankers and finan-
ciers are not giving expression at this
time to their true feelings-at east not
for publication. Many OF them admit in
private conversation that they do mt like
the business outlook, and that ey do
not look for real Improvement in industry
or commerce until after the president al
election. or at least not until aftei the
nominating conventions give the people
q better idea Of what to expect. The
are now talking to the pubic, howe or.
with the single view Of inducing capital
to find lodgment for some Of their bond ).
The money is piled up in great accumu a
tons, and 1t had better go into bonds
than remain dormant Is their reasoning.
petite for bonds satisfied, then it may be
decided to encourage speculation in
stocks. or directly the opposite course
may be adopted. All depends on the polit-
ical and general business outlook.
In the inner circles Of Wall Street there
is tenaciously held theory that the
great field marshals and generals Of high
finance are intensely against another
Taft administration The gossip is heard
and believed that the senior Rockefeller
at the right time he will contribute power
fully to the discontinue of Mr.. Taft-a
work in which he will be earnestly as
sisted by the personal and associated in
fluence Of j. p. Morgan. The Rocke eller
ill-feeling is said to have its founda ion
retirement Of the founder OF Standard
Oil from its utular presidency.
omce Dear to Him.
Mr.. Rockefeller had come to regard
that Office as his dearest treasure-an
honor that was to him beyond price.
worth In fact moro than all his millions.
For him to lose that exalted honor is
with him an ever present and deep sor-
row. It is with him in his sleeping and
waking hours. He is said to bring the
matter up continuously in his private
conversations. and to hold the White
House incumbent wholly responsible for
his humiliation and misfortune Mr..
Rockefeller Is supposed never to forget
or forgive what he considers to be a
wrong inflicted upon him. fact which
lends an air of possibility to the gossip
about his intentions to oppose by every
means In his power q continuance OF the
Taft regime
Union Pacific has been under steady
pressure for weeks, and the street is
said to be full Of long stock. Liquidation
is generally believed to nave been for
account Of insiders and heavy holders,
who see a year or two OF hard times
ahead Of the property-in fact OF all the
Pacific coast lines. originating In the
Mississippi valley. Being spread out
! over more territory than any OF the
other transmissisappi lines. Union Pa
cific is in a position to be hurt worse
than its rivals. Union Pacific has been
under the hammer for q year, and has
suffered from the desertion OF quite a
number Of rich men, who were personal
intimates OF the late Mr.. Hartman. and
iovaI sunporters Of his policies. Appar-
/. - tho vvie60r1 <,f Fol-