New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-20
REVIEW AND DIGEST
Stock Market PerpIexed by
Mixed FaCtorS-HOme and
Foreign PoIitiCS-StoCk
Exchange Reforms.

rumOrS which left sentiment pcrplcXed
and produced a stock market with re-
dictionary tendencies. The week opened
with traders disturbed and discussing
the speech of Presidcnt-elect Wilson at
Chicago, endeavoring to define his atti-
tudc regarding corporate interests.
Associated with this reflected deprcs-
sion was the effect of the invcstiga-
tons at Washington and the intentions
of the new regime at Albany, me
Union Southern Pacific dissolution ana
the expected Minnesota rate case de-
ciSion. on Tuesday and "Wednesday
the market was buOycd some by re-
covering attitude from the effect of cN-
treme bearishncss. but its recovery was
shortlived, comparatively, and declines
on Thursday and Friday emphasized
lack of support and general inclina-
ton 10 short selling. which resulted IN
heavy liquidation. Seeking real rea-
son for the weeks depression reveals
few fundamentals on which the re-
sponsbiity may be placed. Trade IN
dications, while not So vigorous as III
the extremely active days of the latter
part OF last year, nevertheless con-
tinued to present considerable encour-
agement, and the impetus of 1872 busi-
ness was still very strong. Industrial
activity, particularly among the iron
and steel interests, shows vitality OF
remarkable degree, which must be rec
ognized, irrespective of threatened dan
gers thought TO be in store as result
of promised tariff reform. In some
other lines a more conservative trend
was shown, due to the uncertain out
look of tariff tinkering. but on the
whole the business situation remained
i'm very strong position and the near
prospect seemed comparatively good.
Much Of the uneasiness regarding
New York Stock Exchange securities
has been occasioncd by the agitation
regarding the supposed trading abuses
countenanccd by the exchange. In an
endeavor 10 correct the real ana
fancied wrongs allowed under the pres
cnt form of organization movement
has gained some publicity at Washing
ton and at the state Capitol in favor
of incorporating the New York Stock
Exchange. In a large measure the en-
enlargement of such a move by poll
ticians must be due to lack of study
Of the real functions Of an exchange
for the buying ana selling of securities
As an institution, tho New York stock
Exchange was not formed for pecuniary
benefit. but simply 20 facilitate trading
under prescribed rules for conducting
transactions which would give the pub
lie a large measure Of protection In
cooperating the Stock Exchange would
result in many complications which
now are avoided, and an enforcement
10 insure standard Of ethics might
be impossible. The charge Of exclusive
ness and Imperialism made against the
exchange by some people is mark Of
distinctive credit, rather than deserving
Of censure. There must be discrimina-
ton IN membership and forms and
privileges of trading if a supervision
Of credits be maintained and the char
acter Of the personnel be preserved.
The violations Of legitimate business
methods of which the Stock Exchange
is accused would hardly be eliminated
by its incorporation. Very probably the
troubles would be increased, as with
franchise rights members in many in
stances could not be expelled at the
discretion of board Of governors for
irregularities without recourse to legal
procedure. The same process for cor
recting the abuses as they now appear
or may develop from time 10 time APP
pears to be for the Stock Exchange to
reform itself by enforcing it's present
rules and providing new ones TO meet
the eXigencies of any period.
In a report of the New England dis
trict embracing the textile line, the
First National Bank Of Boston says
that as yet there is. no unnatural
diminution in business activity, but il
should not be understood however.
that business men are going ahead
with their 1913 plans without regard 10
tariff revision. on the contrary, where
contracts for raw material or commit
ments of middlemen involve dates just
before or beyond the time a new tariff
may be effective, certain lines will be
restricted, particularly in the woollen
industry. Not that this is an indica-
ton OF any fear Of the business in 1913
a. a whole, but because any reasonable
business man understands that a down
ward revision OF the tariff will change
the scale Of prices
During last week money conditions in
New York displayed a much easier tone
in both call and time money until tow
ard the latter end OF the week, when
time money presented a slightly firmer
tendency. The comparative difference
between the tightness that prevailed in
call money in the latter part of 1872
and during last week was very notice
able. Under ordinary circumstances it
would be argued that stock market
prices should be benefited by easy
money, but last week 10 offset The easy
summit, Of rnnnay wac a dop,.,,I do n.