Evening star., 1905-10-22

4HC SOutu 10 d DOITOWeI, WIHe the WeSl III
its demand upon the east merely draws
down portion Of it's balances. 1t is custo-
mary for financial writer's on the eastern
press to describe this regular autumnal
movement OF money as case of the west
calling upon the east for help to move the
crops. The west does not have to call on
the east for help. 1t has money of it's own
on deposit here, and not even when the de-
mands are heaviest are these deposits pulled
down anywhere near the base line. Aside
from the pull on New York funds for en-
ployment in the south and west this center.
Is just now engaged in a number of gigantic
operations which are likely to tax its re-
sources. During the current week banking
interests have transferred 17,00Q000 in cash
to the accounts of representatives of the
Japanese government and there will short
ly be other heavy transfers of the same
nature. This money will be sent to Toxic
as it may be required. although for the
present it will remain in New York, in large
part. The great bond and banking houses
are also turning over to railroads huge
sums representing the proceeds of the sales
of bonds issued and disposed of during the
last six months This money, too, will re-
main in New York even though it should be
disbursed to a considerable extent in pay
ment for supplies and construction. Look
ing ahead bit the banking interests are
getting ready to take care of their allot-
ment of the forthcoming Russian peace
LOAF. Provision must also be made for the
$50, Geo 900 distribution the first of January
in dividends and interest. Some computa-
tions make the amount $l60,OO0,0O0, there
having been many increases in DIVIDENDS
during the year and important additions to
sum total of bonded Indebtedness 1t will
be seen, therefore there is no likelihood of
easy money for the next ninety days, or at
least until after the 1st of January.
&A
The moral of all this is that speculation
can wait until the money situation clears
The Of Wall street
are almost unanimously bullish for the
long pull, and they are with equal unanim-
ity opposed to premature manipulation for
the rise They do not want the public to
come in yet. They are stand-patters,' and
like majority of the republican leaders
preach the wisdom of letting well enough
alone. A good deal Is heard about the dam
ger of buliing the stock market from the
present high levels, but upon this point
very sharp divergence of opinion is found
1t does not necessarily follow that stocks
are dear because they are high-priced, or
that they are cheap because low priced The
railroads which passed through reorganiza-
tion a few years ago are infinitely better
and safer investments now above par than
they We're on their emergence from the
slough of bankruptcy, although at that m
te, esting stage shares were almost unsal-
BILE at few dollars each. Union Pacific,
Missouri Pacific, Northern Pacific, Balti-
more and Ohio and Atchson were all
OF oted below $25 a share few years ago
and their future was apparently uncertain.
The stock was regarded by conservatives as
very dear at the quotation. The same class
entertains similar views at this moment re-
garding Southern Railway, Rock Island
common, Chicago and Great Western ana
any other junior issues of great and grow
ing properties Among the industrials hav-
ing great speculative possibilities may be
enumerated Steel common, Republic COM
mon. Pressed Steel Car common, Locomo-
tive common, Corn Products common, Dis
tilers, United Copper common and Wool
ems Erie and Chesapeake and Ohio are
slowly working out Of the doubtful class.
X
Nearly all of the western and southwest
ern railroads are complaining that they
have neither the cars nor the facilities for
handling the traffic pressed upon them.
They do not expect to struggle out from
under the overwhelming pressure before
midwinter. by which time the rush of crop
deliveries will be over. The railroads are
standing up manfully under the burden OF
splendid national prosperity. They are
ready to suffer from the aiment for an in
definite period although troubled occasion
ally with an actual clogging of trackage at
terminal points. These are the trying fea-
lures of railroading. 1t takes patience to
struggle with situation wherein the at
tempt is made to move tonnage Whlcn
would tax double the capacity of all the
railroads in the land. There is danger
sometimes of indigestion resulting from
failure to properly assimilate too big a
meal. but there is no real reason to antici-
pate permanent discomfort resultant from
too much prosperity in this country OF
ours. There has been stupendous accre-
ton to our national wealth this year, but
it is the healthiest kind of growth, and con-
ditions everywhere appear to be normal
and healthy. There Is no end of legitimate
activity and enterprise finds encourage
ment In every direction, yet at the same
time there is marked absence of unsafe
Sna Ia In this rpSDecf the prpSent
situation is in sharp contrast to that pre-
sented four years ago. Then there was
an oversupply of undigested and undigesti-
BILE securities. New stocks OF every de-
scription seem to have been comfortably
lodged. The absorptive capacity of people
has grown very much faster than securities
production. There are plenty OF bonds ana
stocks to go around, but no glut except of
rotten things which nobody will touch and /
which are not distributed, remaining load
on the hands of original organizers and
dantly able to go through the sweat A
notable instance of this is international |
mercantile marine.
y
Wall street Is slow to realize the wide- |
spreading effect of the insurance revela-
tions. The truth is beginning to dawn upon
the Wall street interests, however, that the |
disclosures have bred general disgust or
anything bearing the Wall street brand. |
To great many people the phrase Wall |
street brings into being the picture OF |
some great monster whose mission is to
suck the blood of the entire country and |
prey upon its vital energies-a huge, re- |
lentless and never-sleeping octopus The |
insurance scandal with It's sickening story |
of bad faith and graft in high places has |
tended to confirm this queer conception OF |
Wall street, and there has been a conse- |
quent revival of sharp distrust of the lo- |
caiity and its methods. This feeling finds |
expression in an utter refusal to invest |
money in the stock market. fact which |
accounts for the prevailing lethargy about |
which commission houses are making COM /
plant This condition is being taken ad- |
vantage of by people desrous of floating |
modest enterprises of small caliber. 1t is |
harvest time for the small promoter who |
has only to emphasize the fact that he has |
nothing to do with Wall street or Wall
streets mulu-miI1ionaires to engage the |
attention of men of moderate means in the |
outlying districts. Little people who must |
gamble are doing their trading in. the /
bucket shops. preferring to be In close con- |
tact with the blackboard rather than to |
intrust their money to commission houses I
having habitat in proximity to that dread /
full Wall street. A lively and swinging bull /
market which would NIT the hlic1rat shonn /