Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-09-30
Financial News Letter
BY W. G. NICHOLAS,

NEW YORK. September 29.-The real
strength of the stock market lies in the
fact that the great bulk of the so-called
floating supply Of stocks is held by
solvent people and not by the gamblers
who are moved by the impulse of the mo-
ment and the idle gossip OF brokerage OF
fees to get in and out OF the market. PEG
pie of substance have the securities and
they are not frightened by momentary re-
actions into running away from Investments
because of light ard wasted opinion that
unprecedented and glorious prosperity IS
about to plunge the republic into bot
tomless abyss of ruin. The premises do
not square with common sense. There
is a screw loose somewhere. false note
in the funeral chorus. woeful theory
does not seem to lIarmonze with massed
facts Of brightest hue.
Hold a silver dollar foot from the face
it only slightly obstructs the general View;
bring it close against the eye and il OBJ.
scures the whole landscape. The miiled
edge of the coin is the horizon OF observa-
ton. A parallel to this Is found In the
attitude Of many bear oracles. financial
writer's and market commentators at the
present moment. In their agony over the
prospects OF snug money during the coming
three or four months they lose sight en-
tirefy of the fact that money commands
a premium because it is needed primarily
to finance the forward end of the greatest
America. These stupendous crops spell
prosperity in letters that blaze across the
sky that all the world may see. They are
tangible additions to the assets OF the
foundations OF our national prosperity:
they put billions of dollars directly Into
the pockets of the farmers and further
uplift the moral and material status OF
the % O0O 600 agricultural population: they
give fullest assurance of at least another
year OF buying power and a guarantee sur.
ficient for the hundreds of thousands OF
retail merchants to order on a generous
scale against future requirements. this In
turn making certain continuance OF In
dustrial activity in every mill and factory
in the land.
The huge crops are a pledge of record
breaking tonnage for the railroads for an
other twelve months tonnage that can be
carried at lower cost to producer and ship
per and larger net profit to the railroads
because of the economies put into effect
at an outlay of billions OF dollars In physi-
cal betterments and new equipment. And
in this connection II is well to remember
that the increase in railroad capitaliza-
ton during the last half dozen years has
by no means kept pace with the reinyest-
ment in plant, the growth of business. In
creased earnings and the enlargement OF
property valuation in every quarter. This
Increase in value in the case OF railroads
is reflected to some extent by the market
quotations of their stocks, but only in a
degree, and far less than in land, buildings
and almost every other form of property.
A disproportionate amount of earnings has
gone frankly into betterments good thing
for stockholders in the long run. but hard
on them while the sweat is on.
1t is difficult to discover calamity in
splendid plenty. For the time being and
for year ahead the nation is certain to
roll in abundance of everything that goes
to make up the lives of the people. There
will be enough for home and a whole
lot over for shipment to customers in the
old woodland then some for reserve
tration. 1t is the opinion of the best-in-
formed men in the country that farmers
have in their cribs today nearly full crop
of old corn-carred not especially in expec-
tation of higher prices. but simply as in
surance. For the first time in the history
Of the republic the great mass of farmers
are in position Of absolute financial in
dependence. They have money in the bank
(cash working capitaD They are actually
financing their own business and in strict
ly business way. They no longer have 10
mortgage their crop ahead to plant, Guilt
vate and harvest it. Neither do they have
to rush 1t to market to obtain money with
which to pay off pressing claims The
existence of a 8 ,000, 000,00O bushel corn crop
on ton of a very large reserve of old corn
would under the old order OF things mean
ruineusly low prices for the cereal during
the coming year, out uHuer the changed
conditions such a conclusion is unsafe. Re-
ceipts at the primary markets do not indi-
cate any farmer purpose to hurry the grain
to the front. On the contrary receipts
are more than usually light for the time
of year. One reason for this is found in
the fact that the farmers can get only 40
t. As cents bushel for their corn In the
grain. while in the shape Of hogs and cat
tie 1t yields them IS to 70 cents. Another
reason is the beaming content of the farmer
and the human disposition to hold on and
look at visible evidences of wealth and
He does not have to rush his
products to market and ''by Heck he hain't
goin' to-"
First and last during the year there will
be moved from first hands approximately
2. O00. 100000 bushels OF corn, So, 900
bushels of wheat. 6O0.OO0.0 900 bushels Of oats,
an entire cotton crop Of possibly above