The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-12-22
Followed by Free Selling by
Spectators, Who Think
Rise Too Rapid.
ARGUMENTS ARE BULLIsH
ION Every Side Are Signs OF
Good Times and Ad-
vancing Prices.
Especial to The Times-Dispatch.l

of what was considered 10 be a prac-
ticai settlement OF thu dispute between
Austria and Servia growing out OF me
Balkan war, with it's implication that
the peace settlement itself OF the war
would be satisfactorily arranged 3nd
the foreign markets buoyant. to-day
caused sharp advance during the early
part of business In prices here. TINS
was followed b. free selling or stochs
by spectators upon the ground tha'
the general recovery il. the market
during the week had been much 100
rapid. There was also a good deal OF
pressure brought to bear upon the
market by a party OF operators VINO
had conceived a certain theory as u
the outcome Of the controversy De
tween the government and the bhl"h
Pacific Company regarding the disso-
luton of the latter company's refa-
ton. with the Southern Pacific. Their
theory was that the government wouio
order a forced sale OF the southern
Pacific stock owned by the Union "a
cihc. the proceeds TO go. or course
into the Union Pacific treasury. Ihe
rcsult of this would be. because Of the
Southern Pacific and an advances In
Union Pacific preferred. because the
preferred stockholders OF the Union
Pacific would be entitled to share IN
the Southern Pacific distribution il
this distribution was made in cash
rather than in stock. For the same
reason the distribution would De less
10 the Union Pacific common stock
holders than IL they shared In IL eN-
clusively. and therefore Union Pacihc
common should decline. II Will De
highly interesting 10 observe just how
far this fnely-spun contention is borne
out by the event
The weekly bank statement inol-
Gated an increase in the averag sur
Mus OF y20s4,20 and in the actual
surplus Of sss.45o. In both statements
there was an increase shown In bank
cash and a decrease lin bank loans
although the increase in cash was not
I'D to estimates.
Financial apprehension. bear seIIins
and the whole array Of speculative
forces that had been at work for the
decline In prices for two months past
touched their zenith in the hrst hour
OF Stock Exchange business on Mondas'
and from that time on through the
week. the stock market showed in
creasing strength. Most of the news
through the week was OF Kind cal
cula,ed 10 induce optimism, out NOT
all of II was maintained, for the oppo-
sition presented TO the plan Of the
dis,rIbution of the Southern Pacific
stock among the Union Pacihc share
holders was unexpected. and as
seemed to the greater number OF peo-
ple In Wall Street extremely unjusu-
fed. Nevertheless, in this did not stop
the most favorable opinion. and II IS
tine prevailing belief that Mr.. Wicker
sham's views Will not prevail with
the Supreme Court. which Is 10 speak
the final word, regarding the matter.
OF course, the great deelopment OF
:he week was the continual growth
OF strong indications that the foreign
diplomatic and financial situation was
composing itself. With the formal
announcement to-day that all the pow
ers OF Europe. Russia included. hao
agreed upon a method OF adjustHien nj
Of the Austro-Servia difficulty. there
remains only to be settled the terms
of peace Of the Balkan war itself; and
the reasons for believing that peace
will result are sufficiently obvious
Then after the turn OF the year. there
ought to be some decided relaxation
in rates for the use OF money abroad.
although This Will be retarded no
doubt by borrowing OF money BY the
nations concerned in the recent war
TO make good the expenditures neces-
STATED by the affair As for our
country. signs are already pronounced
in favor Of a return OF money TO the
financial centres from the agricultural
sections.
The feeling that there might be an
acute financial stringency at tho end
Of the year. which was the only just
reason that existed at all for the de-
cline in the market valuations In ne
last sixty days, has therefore disap-
peared-
The decision of the Supreme Court
in the anthracite coal cases, which
was almost wholly IN favor OF the
anthracite railroads; the action OF the
Reading directors in raising the divi-
dend of the companyS common stock
from 6 to s per cent: the course fol-
lowed ny the directors OF the Bank
OF England on Thursday IN keeping
the banks discount rate down TO
per cent. and the enormous and pro-
ftable character Of our trade revealed
in Fridays statement issued by the
government bureau OF statistics, show
ing an increase In the value OF ex-
ports over imports for the month OF
sf25. 900. eoo-all these matters contri-
buted in no small degree. and very
properly. TO the improvement in fDan-
cisl sentiment. and the general state
ment seems fair that throughout the
financial district since October both
holders OF stocks and spectators in
securities have been taking counsel
Of alarms rather than sound judg-
ment and common sense
The testimony OF Mr.. Morgan be-
fore the money trust investigation
came like a breath Of fresh air into an
overhested room II r. true that the
tone Of the lawyer for the .nvestieat-
ing committee who questioned Mr..
Morgan. was softened very consider
ably, and the explanation OF the wit
ness was mostly upon eenerai.sies. cut
Nr Norzan's answers we're 50 spon-
faneous and candid. his strsightfor-
wardncss and honesty were 80 con-
spicuous and the Importance contri-
outcd BY him 90 personal character as
the FIRST requisite Of business man
arement and success was 80 pro-
nounced. that the whole result OF his
examination was 70 make deep and
favorable impression. not only upon
49, r~~-g-~~- -ro~fS n~sf uron The roo-