Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-05-28
Il Correspondence of The Star.

NEW YORK, May 27.-The stock market
has been slipping and sliding and comfort
ing lately like glass-footed man on an
ice foe. There has been no apparent rea-
| son or explanation for many of the recent
market movements. In many of the favor
ties the price action has been eccentric to
an extreme rarely witnessed on the stock
exchange. The rank and file of traders
have been at sea and have gambled wildly
| trying to guess the meaning of the play.
| 1t is probably true that some important
! factions and interests in the street have
been lending more or less support to their
specialties. but without concerted effort to
boost prices. The effect of this has been
irregularity all along the line. Some one In
trying to give an idea of the situation said
| it was simply case of reversal of the
Cleveland remark of being confronted with
condition and not theory the con-
formation now being a theory and not
condition.
AS a matter of fact the business situa-
ton is in the main satisfactory. Mills and
factories are going under full Roadway in
every part of the country, and the agri-
cultural outlook has rarely been more en-
bumper yields of every crop that has made
any considerable progress. 1t is too early
yet to know anything about corn, but for
wheat, oats, cotton and the grasses the
promise is unusually bright.
Trade authorities continue to report a lull
in the demand for pig iron, but aside from
that the metal industries are satisfactory.
In Wall street alone there Is uncertainty.
The big people having realized profits on
their tremendous speculative lines are not
yet ready to go back into the market In a
wholesale fashion, preferring rather to
await the certainty of bountfful crops than
70 10 ha of hofT r. r.
ing for their summer vacations giving
themselves a few more weeks than GUS
tomary. Others are going on exploring eX-
petitions, looking after scattered interests
here and there and everywhere and spying
out new territory in the southwest and IN
Mexico.
Bearing on the question of deposits in
banks and concerted move for the with
drawal of these funds, an authority In the
financial world comments in an interesting
way on what these deposits represent. He
uses the national banks for illustration.
These banks at date of last official report
of resources had $3.50, OOOO 900 of deposits,
s641 600 900 in cash and So, So, 900 900 In
loans. From this it is adduced that a great
majority of the deposits represent money
borrowed by business men on collateral
consisting of commodities and property
actual WedlLE-d large percentage Oh winch
is in process of transportation from pro-
Queer to consumer. These borrowers, for
the most part, fully understand the rela-
tionship between cash, circulation, deposits.
loans and all that sort of thing, and are
the last people in the world to organize a
raid against themselves which. if carried
out would inevitably involve them singly
and collectively in the general catastrophe.
The greatest panics of recent years have
only caused fractional reduction In bank
resources. although in some instances at
tended by the withdrawing and locking up
of many millions of dollars by frightened
small depositors.
Mr. Roosevelt is a Jealous student of the
railroad rate problem and takes occasion
whenever possible to obtain personally the
views of men who are practical in the
business. His naval secretary, Mr.. Paul
Morton, suggested to him one day that it
might be a good thing for him to invite
James J. Hill to the White House and hear
what that great railroader had to say on
the subject, at the same time remarking
that Mr.. Hill was probably the best posted
man in the United States on everything
pertaining to the building ana operation OF
a railroad.
An invitation was accordingly extended
to Mr.. Hill, who took the next train for
Washington Cordial greetings and express
Sions of esteem were exchanged. Inc Presi-
dent handed out a preliminary bouquet In
the statement that he understood Mr.. Hill
was thoroughly impartial in his Judgment
besides being a man of unlimited informa-
ton on the matter that he, as chief execu-
tive, had become deeply interested in Mr.
Hill said he was at the disposal or ms
honored host and the duel began. Thls is
tbe Wall street version of what happened:
'sWhy cannot a general, broad arrange
ment be made satisfactory to all you ran
road gentlemen" inquired the President,
For instance how would you be satisneo
with q ner cent return on your investment
on the capitalization of your railroads.?
II think l can say" replied Mr.. Hill,
that the owners of the properties repre-
cont would he satisfied with that return"
well, then, why can't we get right down