Evening star., 1903-07-28
Mr.. Hepburn's View on FL
naneial Situa tion.
SPECULATORS SUFFER
oVERCONFIDENCE PRODUCED BY
=
PROSPERITY.
Shrinkage in Certain Stocks Has Not
Hurt Real Business of the
Country.

NEW YORK, July 2s.-while still averse
to placing their opinions on record the con-
servative banking interests of this city
practically agree that events of the past
fortnight have done much to clear the at
mosphere. A few express further appre-
hension as to the stock market situation,
and there are intimations in other quarters
OF money stringency when crop moving
time comes
Jacob H. Schiff Of Kuhn Loeb & Co. said:
The time Is hardly ripe for full and
free discussion Of the financial situation.
think. however, that matters are generally
readjustfng themselves. In fact, so conf
dent am that all serious danger Is at an
end that have arranged to leave town to-
night for stay OF thirty days at Bar Har-
Dor. That, I think, best proves my faith in
the situation
the currency at Washington and now vice
president Of the Chase National Bank.
which has several thousand correspond
ents scattered all over the country, said OF
the situation:
1.-The country has undergone an era Of
great and genuine prosperity. AS is al
ways the case, advantage is taken Of such
conditions to promote great many Sc
curit1es at greatly inflated values. That
has been the experience of a great many
people in the last three or four years.
Have Gone Too Far.
1--WE have gone too far and too fast.
Credit has been too much extended. We
have been doing too much business for our
capital A hardening process, which sub
jected securities to a level that would de-
termine their proper value. was bound to
ensue. and is now in progress throughout
the country.
1.-The public and banking interests gen
orally became sceptfcal, credit was with
drawn and LIQUIDATION became inevitable.
AS IS always the case under similar con-
ditions. people sold their best securities
when the crash came. because their others
were unmarketable. They did this to meet
commitments on what have recently been
characterized as indigestible securities
Under this pressure railway shares
some of them-have deprecated to a point
where, an investment, they are attrac-
tive. Doubtless other securities on the list
will be subjected to pressure, receding in
value until they reach the investors point
Later the commercial and industrial In
terests Of the country will doubtless un-
dergo a similar experience Those who
have made mistakes financially must suf-
fer financially. People who are too much
extended will very likely come to grief.
General Business Is Good.
General business conditions. however,
are in excellent shape, the crops are so
munificent that it will be impossible to
produce anything like financial or COM
merciaI crisis, and people will have ample
opportunity to put their houses In order.
Those who fail TO heed the warning with
which the atmosphere is surcharged at this
time will surely come to grief.
THE stock market has fallen 80 points
without serious panic or complications, and
the business interests of the country will
have equal opportunity to conform to any
fall in prices or any reduction in the volume
of trade"
Feeling Of Safety Exists.
Isaac N. Seligman of ]. & w. Seligman
& Co. said:
THE recent severe liquidation has i'm
parted feeling Of safety and security not
only among the careful banking interests.
but with the prudent and sensible public.
Conditions which brought about the liquida-
ton did not result from any fear of tight
money, but simply from overspeculation.
The feeling of hopelessness that prevailed
until a few days ago has been diSpelled, and
investment orders for high-class securities
have come from strong parties.
Fully $1OO0O,O0O to $50, 100000 Of Euro
pean capital has been sent here for invest
ment within the past week. The ruling
rates for long time money indicate in my
judgment that a money stringency in the
fall Is most improbable. 1t Is hardly likely
that we will increase our Indebtedness to
Europe this year. l can say definitely by
way Of assurance that in case there should
be any squeeze during the next two
fer prompt relief to legimate financial in