The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1901-05-31

kux that the Will street exists ha.
been safely passed thn fr.iluH Ail oFhi
the tinitrd TtAtrb ~ ono uf satisfaction
that " tamf when " ta That thrfi
must tonne feactioh hftsf the hIah prices
aud rSrraHltu speculation Nhirh hat,
marked Wsti street Dot sis months past
VAS realised uu ni handa That u
came na !, did with "a rush le iikpWlff
a matter NJ concentration. fuf tht
business Interests uf tht nation wtr,
better able tn stand such shock. than
the strain 81 prolonged depression
Since the break there has been = strong
/ feeling along speculative lines. wthsut
/ there being noticed any tendency 10.
ward imitation of prices. In other words.
/ the general market seems 60 have
reached the condition described as
strong and steady
The rush Of speculative, interest.
which has been the marx ~ toe street
since last fall has had one ro'ircable
effect. The brokers Of prominence
whose Judgment D. followed by their
customers. have done their best to dis
courage rash speculation Even when
the tide oi business was highest. when
therr were sll"E reaching orc million
shares a day on the street these men
did not lose their heads. They fore
saw that there must come a day Of
reckoning, and they did what they
could to discount the avalanche. In
stead of encouraging the tendency To
buy on margin they took the opposite
course. BY admnnitlon and by demand
ing larger amounts on margins" from
their customers as protection to
themselves and the market. they placed
II beyond the reach OF many men who
would have been in the market for
small sums, to deal II has been the
complaint during the past half year
that the small man could not do bust
ness with the facility Of old. the Wis
dom of such course has been. disproven
by the rapid recovery Of the market
after the slump, and the fact that that
black day was not followed by serious
disturbance of the banks, not a single
failure being recorded.
But apart from the fact that the
losses fell where they would be least
felt, upon the big houses and operat
ors, there is a lesson in the disturbance
of the street which is of good omen for
the people of the United States This
lies in the demonstration that there is
now In this country sufficient financial
strength to withstand any ordinary
furry. and come out of 1t too with
greater reliance in the trustworthiness
of our great fiscal institutions: Per
haps the most important of these evil
dences was given when the new British
loan was offered to the public. 1t was
then for tho first time that in the dis
tribution of the loan a large percentage
was allotted to this country. Within
n couple of days after this loan was
opened for subscription it was oversub
scribed. More than $3.50 1000 900 was Of
ferred on account of these bonds, and
even yet there may be an additional al
lotment for the New York bankers.
While this does not mean in itself
that there will be from this time on
interest in all foreign money markets,
vet 1t Is an opening in that direction.
Once 1t Is found that the United States
has money and lots of 1t to place in
such loans, the foreign governments
will not be slow to get into this new
market with their offering of bonds.
The phenomenal increase In the
amounts OF money held on deposit in
the banks has been the best testimony
as to the prosperity of the country.
The asking for credit, from abroad is
the corollary. That there will be an
added weight given to the representa-,
tives of this country in foreign coun-
ellis. must follow. Carpers over the poll
cies of the United States in the past
must bow to new conditions. Organism,
which saw in a world power" danger
OF loss of self-control, has been lost to
view In the presence of that greater
demand upon the nation for action in