Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-10-19
MARKET
DISAPPOINTMENT
BuIges and Breaks Leave
Prices on Dead Level of
Slight Recovery.
SHREWD ONES HEDGE
WHEN ASKED OPINION
Year So Far Very Improbable for
Investments Safety More Vital
Than High Interest.
BY W. q. NICHOLAS.
dependence OF The star.

Special Correspondence OF The star
NEW YORK. October Is, 1913
Traders are still growing and gnawing
their teeth over stock market conditions
Every bill of fare is full of disappoint-
ments and trouble. Bull spectators re-
frain from buying until prices nearly
reach the top. and then they plunge on
the buying side, only to get stuck and un-
dergo the stereotyped discipline.
No traders ever take punishment with
more grievous lamentation than the earn
est and fearless 1913 bulls. who make a
practice Of buying at the top and selling
at the abyss of loss. The process Is al
most automatic in sacrificial results. The
chart shows a broad surface decorated
with the gruesome remains of luckless
victims Bulgar battle scenes were never
more merciless in spirit. The why's and
wherefores afford excuse for endless DIS
cussion among the survivors, and every
debate leaves the vital issues undecided.
1t is like tearing up duplicated leaves Of
reading matter to rrolong the dialogue.
The several noticeable recent hulses and
breaks have left quotations about on the
dead level of a slight recovery from the
bottom.
Measured from a strictly mathematic
standard. the year has been improbable
as an investment proposition. Stocks and
bonds classed as safe are not now con.
sidered desirable unless they. can be
bought on a basis of full 51a to 8 per
cent, and the supply at these terms seems
to be ineXhaustible. Stalwart holders OF
securities OF the interest and dividend
class will not sell at quoted prices, and
=; H. a.
safe investments at recognized bargain
prices. The market in its present mood
spells disappointment
Conservative bankers and business men
Of judgment and ripe experience usually
hedge when asked for an opinion. On
the long recovery from the low prices Of
midsummer a sentiment that was quite
bullish developed and the bulk Of talk
was for protracted further Improvement.
Everybody with half a head could see
prolorkation of good times. All the posi-
bic serious features of free trade were
discounted, the crop outlook was favor
able Excepting corn and cotton); Indus
raj production was only a shade less
than the previous high record: month by
month the freight tonnage registered In,
creasing totals.
Banks were neither mserly nor liberal.
Conversationally the men Of high stand
ing In the field of finance were cheerful.
In practical business intercourse with
outsiders prophecy was bright and adj
vice pregnant with courage and hope.
Ard then what really happened? ,Ad-
verse weather set back corn, cotton. po-
tatoes- and some Of the minor crops. and
a period of agricultural depression devel-
oped.- Discussion of the tariff bill contin-
ned tfresomely for sig months and longer.
finish in ninety days. The Supreme Court
unexpectedly legalized the income tax
law and thereby adds an annual revenue
estimated at $50,O00O 600 to 1000 600
The help of this tremendous financial
reinforcement In Fastening action on tar
if legislation was hardly perceptible II
was a grateful force, however. and In
spred the Washington administration with
a vir,le ambition to plunge ahead. The
White House made 1t plain that nothing
short of an assessment on private and
corporate accretion would satisfy the true
patriots. The statesmen were tipped"
to hurry through. take recess and treat
til the regular December session. Not by
long shot!
A new currency law was a vital es-
sential to the financial machinery. Kings
and soldiery of money and scholastic
h.ghbrows became involved in a sensa-
tional countrywide battle which Is en-
ve,oping the landscape with scenic life
Expectations of lightning rapidly was
chilled however and 1t begins to look as
though the wilson hosts might have to
be satisfied with a stage effect this time.
The stern features will be tackled by the
veterans. who believe in making haste
slowly in framing important legislation.
Upward Turn May Be Imminent.
Admitting that the sunny hopes for
effective quick work may fail to eventu-
ate. there remains very large budget Of
other issues to take up, such as the
drastic further regulation of corporations.
and if necessary the revision of previous
dissoutions, such as tobacco, oil and
latest but unfortunately not last, various
coal. railroad sugar. harvester and
dozen other offensive trusts. Clearly
there is no rest for the wicked. None
of the aforementioned industrial cofnbi-
nations can be allowed to rest in peace,
and the millions Of brow-sweaters need
not hope for political. mercanti e, flnan-
cial, industrial or social harmony IN
til the progressives are In full and un.
distributed possession.
The deplorable bearishness that was the
feature of the market for q full month
became so unanimous that an upward
turn In the tide may be imminent Trad
ers no longer pretend to be able to form
sane Judgment on near future action.
Many of the strictly speculative opera
every artificial movement (no matter
whether up or DOWN is infallib1y certain
to be followed by vivid reversal of play.
Protracted lethargy becomes intolerable,
but men of sane Judgment advise against
speculation for the advance or decline.
Banks have plenty of money. but 1t is
held under closest control High interest
is a question OF secondary Importance,
with safety. The sincere advice
of bankers when approached for loans
is to wait awhile" The financial COM
munity is following the counsel, as a |
general rule.
Much has been written about the next
dominant factor, soon to be staged, viz. |
the railroad rate hearing and rate deci- |
s.on AS a cold business proposition 1t |
would seem that the commission could |
not, in justice, hesitate to grant the Pc |
tition Of the railroads, but 1t has lately |
developed that powerful opposition has |
set up against the roads. According TO |
the current belief, certain factions OF /
organized labor are combined in opposi-
ton. It is by no means sure, however, |
that the commissioners will be moved l
by this influence, however strong 1t may
have been in the past or how great a |
force 1t may yet exercise. The atti- |
tude Of labor leaders Is quite as likely /
to be an element of weakness as of |
strength
The anticipated opposition of organiza-
tions OF shippers has not materialized,
and more help that harm is now looked /
for In that special field.
Railway Compilation Prodigious.
The data filed by the railroads with