The Washington times. (Washington [D.C.]) 1901-1902, 1901-08-25

troll of very conflicting influences. Ow-
ing to developments, such as the strike
and corn crop failure, which were en-
tirely beyond human foresight, the bull
movement received a setback from which
il has not yet fairly recovered. Prices
SCARED to shyrocket attitudes in May and
June. and the recessions which have since
followed Fave not brought securities down
TO near the bargain level. not few
fayorite stocks still being quoted at very
high figures from the investment point
of view.
Values continue under the influence of
the community of interests idea, which
in one form or another is expected to
make railroad securities safer and more
profitable investments than heretofore.
Clquestionably the execution of these
IDEAS has had a most important bearing
upon values. No force equal to 1t has
been witnessed In a decade, but it is time
to call a halt to see if these expecta-
items have not been exaggerated. 1t Will
at least be safe for us to wait for a pc
riod that We may learn more as to the
stability and working of these arrange
ments. Nothing will be lost by allowing
time for these vast experiments to dem
onstrate their staying powers.
At present stocks are largely concen-
trated in a few hands whose relations
are SO close and interviewer that harmo-
NOUS actions are imperative for the good
of all Let these stocks, however. once
be fairly scattered and the community of
interest plans will be severely threatened
by new forces and new rivalries that are
now necessarily repressed. Much salts
faction is now obtained from the con-
tinued gains in railroad earnings. and the
expectations of increased dividends which
such reports materially stimulate.
1t should not be overlooked, however,
that these gains are derived more frcm
the increase in rates than the increase in
traffic. Fortunately traffic is heavy, and
there is plenty in sight; hence conditions
are particularly favorable for the mainte-
nance of rates, and in event Of lessened
business activity we will be much less
exposed to disastrous rate wars than for
merIy. 1t is folly to underrate the value
of the community of interest idea. II
marks a new era, and "a new level in rail-
road stocks; but that is no reason why We
should perpetualiy entertain exaggerated
ideas of its value, and the sooner we ind
its real and permanent worth the better
for all concerned. At present nothing but
pure expectancy is sustaining certain
, stocks at 5a511 per cent basis. When
they come down to "a iI4i. basis they Will
be nearer their true level.
The course of the money market from
now on Will be interesting. The surplus
reserve last Saturday stood at $lS ~, 800
compared with so. 551 $50 d year ago The
demand for crop purposes will soon as
set itself, and we may look for a period
OF declining reserves until the end of Oc-
tober The reduction OF the corn crop will
! have little effect upon the demand for
money, the higher prices for corn and the
abundance of wheat ofsetting the lessen
Ell enquiries from that source: General
business promises to be fairly active:
though it is questionable If It will exceed
last years in volume. The loss from corn
damage and the strike will inevitably
cause some diminution of business in
spots, even If the country as a whole
does not suffer from these drawbacks
Bankers are generally anticipating a good
demand for money at firm rates. Sup
plies however, are not sufficient to per
mt any active stock speculation. A rapid
bull market al this time would soon meet
an insurmountable obstacle in tight
money"