Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-07-16
Financial News Letter
BY ". G. NICHOLAS.

cSSS.'e e ga
NEW YORK, July 15.-The advent Of
scorching weather drove out of town good
many of the larger operators in the STOCK
market and incidentally led to cleaning
up of accounts prior to the hegtra The
simultaneous unloading Of long stocks by
so many important people led to sharp
breaks in prices and occasioned something
of a scare in the market. Small fry oper-
ators by the hundreds were seen scurrylng
about the offices ipquiring anxiously what
the matter was and contributing to the ex-
element by dumping over their little lines,
which, in the aggregate. proved factor
of weight and consequence. There is little
in the situation to produce alarm or dis
quiet in business sense The one feature
of really bearish import is the extent to
which bank credits have been expanding dur
ing the past few months. At the present
writing the New York banks and trust COM
panies have money loaned out to a valume
of $500. 100000 greater than year ago on
actual cash resources smaller by nearly
S40OOO.OO0. This reduces the cash reserves
to about ii per cent. which, in the opinion
of conservative bankers is too narrow
margin for entire safety. 1t is this situa-
ton which causes the banking element to
discourage present speculative expansion.
The foundation underlying the financial
structure needs some further strengthening
and hardening before controlling banking
sentiment can be in unqualified sympathy
with the ambitions of bulishly inclined
spectators in the stock market.
Meantime legitimate business conditions
are about all that can be reasonably asked
The scandal in the Department OF Agrf-
culture will accentuate the opposition in
Congress and elsewhere to the whole sys-
tenn of crop reporting as conducted by the
United States government. Almost from
the start there have been well-founded sus-
picions of leaks in the bureau having the
work in charge. These accusations have
invariably been wrathfully denied by who
ever happened to be at the head Of the de-
partment. In almost every instance official
opposition to thorough inquiry has resulted
in the withdrawing OF suspected statisti-
clans.
Reading. which has just executed spec
tacular upward movement of $50 share,
Is only beginning to realize results from the
plans formulated twenty-five years ago and
more by Franklin e. Gowan. 1t was Gowan
who conceived and carried out the project
of buying immense tracts OF anthracite coal
land, and it Is upon the foundation laid by
Mr.. Gowan that the Reading system owes
its amazing prosperity more than to any
thing else. Mr. Gowan was ahead of his
day, however, and went down under the
storm of Indignation which enveloped him
as a result of his daring expenditures. He
committed suicide In a hotel in Wash
ington about thirty years ago. Another
president of the Reading road, A. A.
Mcleod found the burden of steering the
anthracite-burdened craft too much for him
and sought rest in the gave. Yet the Read
ing of today is only at the threshold of the
wonderful career pictured for it by the
imaginative Mr.. Gowan. who lies in an al
most unrememhered grave. Thirteen years