Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-08-24
MANIPULATED MARKET
Henry Clews Says Strong Men
Were Back of Campaign
Against Shares
GOSSIP ABOUT WALL STREET
shrinkaqe of Securities Was Out of All
Proportion to Any Changes Affecting
Values = Late Heavy Decline in
Stocks Intensified by Artificial Means
Disaster Checked

New York. Aug. 24.-Henry Clews,
in his weekly financial letter, says:
1T is now quite evident that the late
heavy decline in stocks was intensified
BY artificial means. A compilation has
been made showing that this years
shrinkage in securities amounted to
$3.50 millions on a capitalization of g.,
o3i millions, compared with a shrinkage
OF 4.66S millions in 1898, a year of gem
eral financial disaster. Thus, in a year
of general pros perity. we have had a
contraction double that incurred in a
year of adversely, only ten years ago.
Everyone must appreciate that such an
period is out of all proportion to any
changes in conditions affecting values.
Conceding chat there was high degree
of imitation ii. 1902. that the money
market had drifted into critical condi-
ton because OF excessive obligation,
and that the stock market was carrying
n threatening mass of indigestiblc Sc
curities. there We're no changes in the
crop, industrial, mercantile or financial
situations that began 10 warrant any
such tremendous decline as this. All
sound opinion agreed that, while the
top of the boom might have been reach
ed no important decline in the volume
of business was in sight: and, outside
of Wall street. the signs of reaction
were few and unimportant. until the
chilling influence of fear began 10
spread beyond financial precincts.
During the whole downward move
ment there We're signs OF powerful con
troll, generally exerted toward lower
prices, but invariably used to check
disaster at the critical moments. Opin-
ions Will, of course. vary as TO the Wis
dom of such use of power, but no one
will deny that the financial situation is
Il whole has been greatly strengthened
and clarified by this forced liquidation,
howsoever unfortunate it may have
proved for the indiscreet. One excel
lent result is the SOLDERING influence of
such an experience. for nothing short
OF a financial cataclysm seemed able
to stop the speculative fever that eX-
listed among 4 class of rich operators
This era of purely speculative syndi-
Gates and overcapitalized industrials IS
fortunately over; it will shortly become
a matter of history, and that it has not
involved the country in wholesale fl
nancal disaster is simply due TO the
severe, yet not wholly inconsiderate
contraction of credit imposed by our
most powerful bankers.
The country is practically certain OF
II.
Our farmers are likely to be prosperous
for another year, because while crops
are not particularly heavy, prices are
high and afford good profits. Labor is
also we'll employed at good wages Man
ufacturers are feeling the high cost of
production somewhat, and there is like
ly to be less expenditure for eXtrava
gances than when the boom was at
its height, yet the country, as n whole,
is in satisfactory condition. Our basic
industry, the iron trade is in better
shape than supposed. 1t is true abnor
NAL profits are disappearing, but there
is a big demand for all sorts OF iron
and steel products at the more reason
able prices. and no signs of cessation
are yet in sight.
The worst as to the money market
seems to have been anticipated. Crop
demands are close at hand, yet bankers
show no anxiety about meeting them.
Should money rates admance much fur
Their gold imports would simply be has
tened. Very soon produce bills will be
in better supply and tend to weaken
sterling bills. London shows no more
interest in American securities than for
many months, and as soon as the dis
trust developed by our excessive pro-
noting has disappeared we may expect
a better demand from that quarter If
prices do not advance too rapidly.