Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-11-16
LEVEL OF PRICES
LIFTED A TR|FLE
Weeks Activity Is Concen-
trated Upon Old Group of
Half Dozen Favorites.
MARKET HAS MOVED
IN NARROW LIMITS
Public Still Cautious Of Speculative
0fferings-Mexico Streets
Main Interest.
By w. g. NICHOLAS.
pecial Correspondence Of The Star.

NEW YORK, November Is. 1918.
The level of quotations was lifted mod
erately this week, and revival Of bullish
sentiment was proclaimed. Activity was
concentrated upon the old group Of half
dozen favorites. reinforced by hand
full OF specialties. BY common consent
London was given credit for leading the
buying. being moved thereto by the
alleged subsistence of Mexican belliger-
ency. and also by the bright prospect of
currency legislation during the life of
the special session of Congress. The rea-
soning that resulted from the unexpect-
ed allowance of S6,OOO,OOO additional
wages for account Of trainmen and con-
ductors. was that the interstate COM
merce commission would be shown there
by the imperative last-straw necessity
Of allowing the railroads an offsetting
$50, 100000 freight rate raise.
1t could not be detected that the public
went wild over the developments of the
week, but some definite Improvement was
claimed by the bullishly inclined traders.
and symptoms of public enlistment on
the buying side We're observed at inter-
walls. Sporadic activity was made the
most of to arouse public interest, but
strange as 1t may see an overwhelming
majority of bankers and brokers still
advise their friends and customers to
keep out Of the market until ''condi-
tons take definite form Asked for a
bill of particulars or some definite
information, the wise men confess they
are helpless as children; in desperation
they stick to the above quoted phrase.
There is nothing to take its place, thus
far. The limit of prices has been mar
row throughout the entire list. and ex-
cept for an occasional little rally Sig
nalizing usually the running in of q
group Of timid bears the play was fea-
tureless. Mexico furnished nearest ap-
proach to fireworks.
The keenest among the students and
professional traders confess frankly that
they do not know whether the market is
'overbought' or 'oversold,' and can
unanimous from the traders standpoint
that the situation is still hopeless mys-
terry, and that news material for guild
ance is practically worthless.
Bargain Counter Full.
The market is "chuck full of bar.
gains. Dozens of stocks that are nor
mally appraised as gilt-edged AZ to 8
per cent dividend payers go begging at
& to per cent and even bonds con-
tinue to work lower under mysterious
pressure. The bravest 'plungers' rarely
risk more than few hundred shares.
to $1,000 shares. Those who have money
are suffering from confessed fiscal paral-
ysis; those who have light capital land
they are in overwhelming majority in
the Wall street district are merely
tlin-voiced members of the stagnant
host and contribute nothing to the sum
Of gambling or investment Intelligence.
Liquidation for New England account
is probably heaviest, reckoned on the
dividend sacrifice basis, and New Haven
10
is going to a meal ticket sacrifice.
Tens of millions in securities have been
sold out to provide for the current needs
of the poor investor Literally ''poor"),
and New England is the chief sufferer
thus far. And yet it must be confessed
that there are fundamental reasons Tor
stock market and money market con-
striction The down turn has been fore
Swallowed for long time by such
..seers' as Jim Hill, Jacob Schiff, ].
b. Forgan and others of that class.
Persistent harping on the long unrec-
ognized fact that the fight of radicalism
against capital would sooner or later
take the form of a terribly dangerous
agency for the repression of enterprise,
destruction Of values and revolution of
established business institutions may be
regarded distasteful. but the dangerous
gravity of the development is finally
coming to be generally recognized.
Accumulated capital. to whose activity
the material progress of the country Of
recent years has been and Is largely
due. is threatened with contiscauon and
its owners with condign punishment
Wholesale nervousness and actual fear
are now in tangible evidence in the
giant markets. Hundreds and thousands
of men compose list Of capitalists who
will not risk a dollar ION a chance as
they put it. A condition of rank apathy
has been created Prevailing sullenness,
that is disheartening In the extreme,
rules, and from 1t there is no present
evidence of recovery.
Gary's Steel Claim Proven.
When Judge Gary said repeatedly that
the United States Steel Corporation
could compete successfully with the best
equipped European steel and iron mills
regardless of tariffs, nine out of ten
doubted or openly disbelieved the claim.
The steady increase in the volume Of
American exports during the last three
Years Ia large per cent originating with
the so-called Gary trusp. has brought
about an overwhelming change of opin-
ton With quotations of product ruling
So to 81 per ton lower than they did on
top level and trust expectations more
than doubled, the curious demanded how
the miracle could be done. The explana-
ton was easy. and it is no longer con-
cealed. For that matter it was never
concealed. The corporation simply went
quietly along Saving wood and saying
nothing"
1t had been the custom of the levia
than producer to put back the best part
of surplus earnings into plant and eX
pansion. In about eight years over $780,
coo 900 of velvet went back that way.
About two years ago change OF policy
was determined upon. 1t was decided
that there was no longer vital need for
further large expenditure of earnings In
plant and that the owners (the $4,000
shareholders had right to share In
the future surplus earnings. The $40
600 OOO TO S50,OO0O00 subtracted annually
from earnings and turned into improve
ments and expansions was suddenly di
yerted to the pockets of the grand army
of individual shareholders. The wonder
full annual surplus could be spared for
the shareholders for a few years without
detriment to plant or impairment to
efficiency, and that Is what is being done
now.
1t was merely the legitimate diversion
of a large fraction of the net earnings
into a different channel. BY common
consent the United States Steel Corpora
ton has 81 to $3.50 per ton the best of
competition in home manufacture, and is
proving by the figures of the custom
houses on both sides of the Atlantic that
It can undersell the producers of Eng
land Germany and other European coun-
tries in their home markets.
The foregoing facts are not new to the
hundreds of thousands of men In the