Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-12
STREET IS DIVIDED
Traders in Stocks Disagree
on Coming Conditions.
FEARS FOR THE FUTURE
Long Period of Dizziness and Weak
ness Is Predicted by Some.
REASONS FOR HESITATION
Government Suits Against Railroads
Given as Fair Example Even
for Worry.
FEARS FOR THE FUTURE
REASONS FOR HESITATION
BY n. ALLOWAY.


NEW YORK. January 11.-Talk to ten
men in Wall street, and nine of them will
assure you that everything is agreeable.
What actually the fact is from the Wall
street viewpoint is not agreeableis ex-
ceedingly diSagreeable. Attitudinizing
philosophers on and off the stock ex-
change have the habit of explaining
everything upon the theory that all con-
trolling elements are merely a state of
mind" That Is a pleasing phrase. 1t
means less than a little And so in the
present case the explainers and apologists
for a numb Wall street are insisting that
we are close to wholesale betterment,
tremendous buoyancy, regardless of the
fact that nowhere appears any sign what
soever of possible renewing public secur-
ity market interest.
The senior member of one Of the most
important firms in Wall street-a gov
ernor of the stock exchange-sad to me
today:
I'VE are in for long period of dizziness
and weakness. Everybody is worried.
Nobody knows anything, can count upon
anything. 1t looks to the most conserva-
tive bankers and brokers of the stock
exchange district as II we might have all
manner of anxiety and distresses even
before March 1. An extra session of
Congress, bent upon challenging all the
investment interests that center in indus
trial enterprise, will be active and ag-
gressive after the new administration is
tnaugurated, Of course; but even more
earnest will be the antedating fight.
Since we have had protective tariff
policies there has never been a situation
corresponding to that which will be dis
closed in Washington eight weeks hence.
When Mr.. Cleveland marshaled his cam
paigners for lower duties there was in
Wall street no general belief at all that
he could accomplish anything substantial.
What Mr.. Wilson undertakes-what Mr..
Wilson predicts or promises or fights for
Wall street will expect to come to pass.
Between the old standard and the stand
ard that is new there is difference SO
that every speculator in Wall street I'M
affectedly acknowledges its consequence"
Indicates State of Mind.
Language like this is not hard to I'M
derstand-projected by champions of the
stock exchange. It is rather a weird reci-
tation: but none the less it indicates
what in important quarters is regarded
the Wall street attitude is at present
of interest than that which is supposed
to represent that what occasions current
stock exchange tamenesS Is due to some
thing else than what the stock exchange
itself stands responsible for. For years,
decades. generations-Wa street has had
security market investment and specula-
ton activity measurable pretty fairly by
the quantum of general national business
briskness and healthfulness. No such rule
prevails now. Throughout the United
a. III LfSnnv
ciers-metropolitan and local bankers
alike-are wholesomely situated: there Is
oppressive stress nowhere; every legiti-
mate demand is being accommodated;
from the viewpoint of the banker there Is
no cloud in the sky. Commercially the
merchant, the wholesaler and the retailer
BOTH make reports that are cheerful; I'M
seasonable thermometers interfere with
furs and some other specialties, but as a
whole the trade of winter customers COM
pares we'll with what has averaged in
years past. Industrially there is content
upon every side. The manufacturer pros
pers The employee has full time. larger
wages. better consideration. Agricultur-
ally the crop situation has not one bad
speck showing in 1t anywhere
That professional Wall street should be
blue would be incomprehensible to any
body outside of Wall street. Upon the
New York Stock Exchange there are &C
cepted measurements which nowhere else
recognition. Hysteria here is vastly more
than logic. Guesswork and
gambling rumor-mongering offset and
outrun any manner of sane calculation.
Poppy cock is forever the superior of COM
mon sense So runs the Wall street rule.
Thus at least, the ordinary exhibit is
appreciated.
In finals in the last analysis. certifying
records will upset the gamblers: but in
the ordinary, unaudited routine all is
upon the side of the critic who snarls,
the pundit who parades his toadstool
wisdom.
Reasons for Worry.
There are perhaps dozen reasons
why sensible Wall street should hesitate,
even worry. In the Union Pacific-South-
ern Pacific. for example. it is utterly i'm
possible to make any fair computation of
what may outcome from the govern
ments controlling policy - though no
human being can misunderstood the fact
that the stupendous assets there must be
ultimately distributed to those who are
the actual owners. In the notion OF
those Wall street oracles that dote upon
sensation it is the argument" that some
sort of Washington dictum is to be exc
cuted which will extinguish all value
that Union Pacific and Southern Pacific
alike are to be cut in two by reason of the
recent Supreme Court edict which holds
that there are assets being held In q cor
poration quarter where they do not be-
long-no edict. no intimation, that these
assets are in any way, to any extent.
under any circumstances, to be regarded
as anything else than real and apprais-
able at their own provable value.
Southern Pacific particularly has been
sold short by wholesale on this theory
Of extinguished value. Stiffness climbs
high in performances like this. Southern
Pacific stock, representing Southern Pa
cific assets. Southern Pacific earnings.
must have appraisable value always.
Therefore. independent observers cannot
fail to expect to see before long the rec
ord Of losses upon the part Of those who
are Southern Pacific pessimists. If the
millionaires who control Southern Pacific
should cooperate to help its market
status, there would be quick and thorough
going answer to every antagonist. For
Southern Pacific can easily go up dozen
points above it's present price without
bringing into animated debate q single