Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-09-05
Commission Houses Doing
Nothing Worth Mentioning.
MANY BROKERS IDLE
ALL SORTS OF REASONS GIVEN
FOR THE sTAGNATI0N.
Outlook is Regarded as Generally Salts
factory-Attitude of Secretary Shaw
-Wasteful Use Of Money.

Special Correspondence OF The Evening Staf
NEW YORK. September 4. 1908.
An amusing condition of affairs prevails
on the stock exchange. where brokers' hold
ing seats worth 10000. $4,000 or $4,000
each, are scurrying around frantically In
their efforts to make a few hundred dollars
and keep out of the poor-house. Business
is 80 dull Just now. after everybody has
been cleaned out" that the commission
houses. which are the real barometer OF
business in the stock market, are doing
absolutely nothing worth mentioning. The
recorded transactions on the exchange are
footing up two or three hundred thousand
shares day, but probably one-half Of
these are what is known as wash" sales
or matched orders.
Wash" sales are. of course, meant to
fool the public. and they often accomplish
the desired end, but at present the scheme
does not seem to work satisfactorily. Usu-
ally sales of 1900 shares or SO of a GER
tain stock will make 1t look strong or
weak. and Ii is an easy matter to run up
wash sales amounting to 1000 shares
Then, II the dear people" are induced to
come in and dabble in the speculation the
operators become correspondingly happy
All kinds Of excuses are offered among the
brokers themselves to account for the ex-
listing stagnation.
For instance. 1t Is said that the summer
holiday season has been later than usual,
owing to the cold weather. and that the
absentees will soon return. This, however.
may be forlorn hope. and there IL actually
no telling when business will once more
become active. John w. Gates Is here
again and some persons think he may take
hand In the market and stir up the
animals" but while Mr. Gates appears to
be willing to take a hand In the cotton
speculation. there is no evidence, as yet,
that he will buy stocks on an extensive
scale. Gates remarked the other day that
stocks were too low In price, but II the
market remains at a practical standstill
Tor any length of time another slump will
ensue because unstable stocks. like un-
salable potatoes. or unstable pumkins,
must find a marketable level. Possibly the
public will recognize the fact that prices
are very low and begin to buy shortly
Jim keene Is in close attendance on the
stock exchange. probably with view Of
fecoupfnR some OF his losses.
Annual Money stringency.
Just here the question Of the annual
stringency Of money comes in. An idea
seems to b current that the purse strings
will not be pulled as tightly this fall as
last, and that the Secretary Of the Treas
ury. Mr.. Shaw, will afford material relief
IN some manner acceptable. alike to the
government and the bankers.
A careful review of the situation shows
that there have been years when the per-
centage of bank reserve and consequently,
the extra margin of safety was consid-
erably higher than 1t Is now. but the cir
cumstances that shaped events in the
money and stock markets were much more
unfavorable then, a fact that emphasizes
the rule that the adequacy of resources
can only be measured by prevailing condt-
lions. Thus in the years of currency agt-
tation the reserves ran high and call
money was cheap, as was also time money
as compared with current rates although
the outlook discouraged enterprise and ia
vored operations for declines in the stock
market in a way that has not occurred
since.
In August of 1894. while the gold In the
treasury was running out at an alarming
rate. while railroad earnings were poor
and conditions generally conspired to de-
press the money and security markets the
banks held at the end of the month a re-
serve of 1893 per cent and a surplus re-
serve of SOS 71S60O. Again, in August.
1895, with heavy exports of gold and bond
Bales. with the treasury gold reserve sunk
TO below s1OOO0O.0o0, they had a reserve
of 31.SO per cent and the surplus was
reserves were less adequate than those of
later years. because they were insufficient
TO overcome the suspicion and distress of
the times
Although the large reserves of 1884 and
1895 failed to create confidence a similarly
large reserve in 1897, the elections having
removed the greatest anxiety of the situa-
ton. helped to support a trade revival that
had set IN and to give to the stock market
an impetus that finally doomed prices not
outstanding the usual seasonable interior