The sun., 1916-12-03
stTHE general opinion during the
past few months has been
that n Mr.. u1h were

past few months has been
that II Mr.. Hughes were
soscted we would have a boiling stock
market. but II Mr.. Wilson were elected
~ would have a cooling stock mar
kst." said Mr.. Babson. Some people
even went so far as to asser; that Mr..
Wilson'S election would mean a panic.
Certainly it did seem reasonable that
the stocks Of industries which need
greater protection in order to live and
pay dividends would sell higher follow
ing q. Republican victory than a DEM
ocratic victory. On the other hand. 1t
u natural under such conditions that
both parties should exaggerate.
"Therc is a relation between politics
and business. as there Is between a
cart and a horse. There is. however.
great danger OF putting the cart be-
fore the horse when discussing BUSH
ness and politics. Statistics clearly
show that the Republicans have been
a. guilty OF this rs the Democrats.
Whether this was due to the fact that
the Republicans had the horse and the
Democrats only the cart, l will not now
discuss.
III Hughes had had a landslide un-
ooubtedly stocks would be selling
higher to-day than they are. II Will
son had had a landslide stocks would
b selling lower to-day than they are.
Tho fact hat the vote was almost a
AlA A-- n,. hath ~ I,,I. ~
bears to sit up and take notice. Both
sides have been put on their mettle.
The result Is that stocks have not
moved very much either one way or
the other. and hence We have condi-
lions as they arc to-day.
Personally. I have felt right along
that the election Of neither Hughes
nor Wilson by a normal plurality would
make any material difference In imme-
diate stock market prices. I believe
that were Mr.. Hughes elected to-day
with the same small plurality that Mr..
Wilson has stocks would be selling for
the same prices that they are selling
for now. The stock market has not
taken the election very seriously thus
far. and It Is justified in its position.
"The real student OF conditions
should be more bullish to-day than II
there had been a landslide In favor OF
either Mr.. Hughes or Mr.. Wilson. A
Republican landslide would have
brought tho Old Guard again into
power. and problems which are now
being solved might have To be solved
all owe again later on. A Democratic
landslide would have put Tammany
into the foreground and made the
Democrats self-satisied and ~independ-
snt during the coming four years.
1.-The close vote that Vas given will
keep the Republican party strong and
intact and at the same time may keep
the Democratic party on. It's good be-
havior and prevent 1t from enacting
any wild legislation. The present vote
will enable President Wilson to perfect
the policies into which he has entered
but with the strong vote for Mr.,
Hughes staring him in the face, he
will not do anything very radical
Hence. II seems to me that II we will
oil rally to the Presidents support. We
should have four years OF sane and
useful legislation. Hence ] say there
Is nothing about the election which
legitimate investors need fear.
AS to immediate business prospects
being harmed by the election. l believe
that the opposite results will occur
1t Is generally known that the heads
of most Of the large railroads and Other
=, big corporations are Republicans. Mos
OF the leading bankers are Republi,
cans. Is 1t reasonable to suppose tina,
these men have been giving any order.
for equipment, additions, supplies, &c.
during the past sixty days that the,
have not been obliged to give? an
sure that an investigation would shov
that these men have been holding bacl
many orders with the idea Of giyinl
them out directly after the election o
Hughes.
such a procedure would have tw,
advantages Holding back the order
would make business conditions ap
pees less prosperous under the Demo
crsuc ADMINISTRATION preceding cleo
lion. pouring these orders al, in n
once during tbs 49, Nhirty day