Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-03-28
Money is Plentiful in the
Big Centers.
WAVE OF INVESTMENT
IS SWEEPING OVER THE WHOLE
COUNTRY.
Impression Gained by Secretary Shaw
During His Recent Visit to
New York.

Men of affairs who come over from New
York say that wave of investment and
speculation is sweeping over the country
indicating not only the presence of an easy
money supply. but great confidence of the
people at large In the industries, resources
and business of the land. Week after week
the tide of speculation has been rising. they
say, but at the same time there has been
steady purchasing of investment securities.
Notwithstanding the threat of radical
regulation of railways by the next Con-
gress. the people investing heavily in
railroad shares. This is not unpleasing
to the groups of fnanciers who desire to
control the railways and to bring the sew
eral systems into closer union. They will
be glad to have the public obtain a financial
, stake in the game and be ready to put in
a word as to the extent and scope of the
regulation If the people desire to go
slowly in the matter of regulation the poll
ticians will be quick TO find II out.
There Is said to be every indication that
the railways and industrial establishments
have busy season ahead of them. 1t has
been the fashion for the croakers to pre-
dict for the past two years the end of the
boom. But in that time stocks have been
going steadily upward and are being
bought. Even the optimists have been sur
prised, and as for the croakers-well. they
are dumfounded
Money is Plentiful.
Secretary Shaw went over to New York
last week and was pleased 10 find money
plentiful The outside banks are send ng
funds to the metropolis and money is flow
ing in from the brokers agents in all the
big western cities. The westerners are
said 10 be pronounced bulls on the market
and 1t is explained by the fact that they
live in the midst of the producing section;
they see the prospect of big crops. heavy
trains, good business, steady employment,
and they back their hopes with their judg-
ment. Their money gradually finds It's way
to New York
Secretary Shaw gained the idea that It
might be a good plan to withdraw some of
the government deposits in national banks
In this time OF plentiful money, against the
day when there will be a clamor for money
to move the crops. The notion got abroad
in New York, II is said that perhaps the
Secretary was throwing out hint to the
plungers to take a reef in their speculation
topsails and to haul little closer to the
wind. The withdrawal of so, 100000 gov
ernment deposits, 1t was argued would
check unwiSe speculation and furnish
serve fund to be released later in case there
was actual demand for it.
There are some features about the specu-
lative market that puzzle all the financiers.
There is one railway stock, for example,
worth intrinscally about 30, which was
selling yesterday for 50. The men in con-
troll of the road declare that there is moth
ing in sight to account for this price, but
there are people willing to pay it, and II
stands. Other stocks that are on sub
stantial dividend basis do not hold any
where such a relative value in the market.
The best evidence of the irresistible march
of the industrial securities is said to be
found in the rise of the Steel stocks. 1t
seems only the other day when Steel pre-
ferred was selling for So and the public
was holding aloof, not knowing what might
happen. But the stocks have been freely
taken within a week at 90. The public
knows that there is always suspicion of
there being water in the big trust corpora
tions, but the tremendous prosperity OF the
country seems to be backing every indus
trial game that is being played.
General Prosperity Reflected Here
Washington is rejecting in its modest
way the general prosperity. People who
deal in securities say that there is increas-
ing demand for local stocks. A great deal
of money has been made in the past eigh-
teen months In public service stocks and
in bank stocks, purely local. 1t has come
to the point where the Washington securi
ties are quoted daily on the curb In Wall
street, and the financial publications list
the changing values.
The local stocks are not without their
speculative feature, although the range Is
limited But 1t is hard to see how Wash
ington securities can slump to serious de-
gree without gross mismanagement. Money
is coming to town all the time, people
of wealth and leisure are attracted to this
the most attractive city for that class. The
city is bound to grow, and it has always
the certain expenditure of the governments S
monthly pay rolls.
The financiers say that they are thankful
there is no prospect of the business situa-
ton being disturbed by politics. Congress
will not be in session until October, and 1t
is well understood that nothing radical will
be attempted even then. In the meantime
there is long period in which the business
of the country can go along, undisturbed
by legislative agitation.
Indeed, according to these men who drop
into town from the centers of financial and
Industrial activity, everything is lovely
and the goose hangs high