The Washington herald., 1906-11-12

violent fIuctuation of prices, because val
ues were substantially sustained by the
immense existing prosperity, and by the
fact as was realized that even had the
result OF the election been unweicome in
a stock market sense no direct OF impe-
date harm could have proceeded from IT.
Nevertheless, the great question pre-
ssnted was, than which none cOul6 be
more momentous to business interests,
whether q demagogue could obtain plu-
rality of the sunfrages Of the voters in the
most important State in the Union.
Sentiment in the financial district re-
garding the upshot Of the battle may De
best described, perhaps, as mixed
So far as the general election result is
concerned It was by no means Unsausfac-
tory, since It did not disclose the exist
ence Of any strong tendency toward q
substitution for existing governmental
policies Of those more radical
Il IS an off year in politics and some re-
duction OF the Republican majority IL the
national House OF Representatives was
conceded. even by the Republicans them
selves, but the feeling in Wall street re-
garding the vote sn this State was not
wholly one OF sgratihcation. 1t may be
that = part Of the disappointment that
was exhibited was due % the circumstance
that toward the end OF the political can
vSss estimates OF the probable plurality
Of the Republican candidate for the gov
eTnorship were unduly raised.
Not Entirely Pleased with Result.
But, rs It was, delight over the elec-
ton OF Mr.. Hughes was cIouded by the
nent received It appears 10 be the gen
eral opinion in financial circles that the
result Of Tuesdays contest IN this state
renders the issue Of the next Presidential
election obscure. A feeling prevails
whether or not lt is well founded, that
from now on until the Presidential battle
IS over we may expect a harrying Of cor
poratons by both political parties In the
eDdeavor TO accumulate as great a store
IS possible Of that kind OF capital which
81 is declared has been proved by events
20 be popular with the electorate.
Forecasts that il IS sincerely 10 be
hoped are Incorrect were circulated con-
csrning the character OF the next mes
sage Of President Roosevelt to Coueress.
these purpOrting 10 be tlaJ TIE President
VIII suggest further steps 90 be taken by
the national Iawmakng body toward the
limitation OF fortunes and the bringing
o. all great corporations more closely
under the supervision OF the general gov
eminent. This, from G financial point Of
view. does not form an altogether pleas
ant prospect.
Yet what thrill Of delight wovId be
Ieit throughout the business world i it
were known that instead 0f further bait
-nE OF corporations the administration
proposed 10 bend its efforts AZ Washing
c1n this winter 20 the accomplishment Of
the less sensational. but fa- more use-
[Gi, end of q reform Of our existing cur
-cncy system and the abolition or amend
-out Of those barb8rous and 0bsol1te
avs that now impede in the most stub
born way the circulation u business chan
uels OF the peoples money Wi.h gucn
an achievement The descendants OF any
Pfesioent Of the United states that ever
lived might be proud To Ink his name
stocks in Strong Hands.
Nevertheless. the election IS over. There
cannot be another one for some time. and
rhe general movement Of the security
market since the day Of the contest indi-
Gates that other influences than those Of
political nature ere directly affecting
Talues. Fundamentally, the greatest force
Ciuues to be the exceeding afiuence Of al
business industry, and the fact that what
Wall street calls the floating supply OF
sJocks-that IS 70 say, the bulk Of the
securities held either on margins or in
outright ownership for the purposes OF
speculation, actual or impIicd-sre con
eentrated in the hands Of these who are
possessed of great financial resources and
Ia d.
the market and IN a continuance for
long time To come OF the present period
or prosperity Is IN no way dimmed
>upeTncially, OF course, the immediate
point that the stock market has 10 con
slider IS the money situation. Develop
1Eents II the last ten days have justified
The view taken IN this column some time
ago 1nat the strain on the local money
market arising from the recent Uquidq-
ton in London would not be Immediately
Telt at this center, but would be uost-
Dcled until the stock sold by London
actually arrived On this side OF the At
-GEtlc. TO some extent the stocks thus
carried by London houses FOR American
Spectators and that We're forced upon tbe
market by the sensational advance in the
Bank OF Engiand's discount rate were
paid for directly after their sale through
immediate reTaittances Of demand or ca
AtE EsatiiaitECs NaL TIE CUSTOMARY pro-
cedure IL these matters is for the stocks
sold ii London for American account or
TO American purchasers to be taken over
there BY large banking houses acting as
agents Tor people on this side and ear
RED until the time Of the next London
financial settlement They are then
shipped here. and payment is made for
them.
Securities arriving IN this way were not
placed III American hands until trans
Atlantic steamers due q week ago last
saturday had reached this port. and our
banks. therefore, last week had heavy
bills 20 meet This was the cause beyond
any question of the further stiffness .il
tine and call money rates that occurred
n the period.
Money Coming Rack from West.
although New York exchange In chi
csso and some Of the other Western cities
las risen to e premium. indicating re-
turn of money from the West to this
center or. IS is more likely the case, a
shifting OF leans from Eastern TO West
eln financial institutions, there does not
appear TO be any. expectation in financial
circles that there VIII be any notable
abatement in the present rates for call
and time funds before the end of the
Sear The cali for mcney upon the East
crn banks from outside districts has now
been transferred, il seems, from the West
90 the South the moving OF The cotton
crop, in other words, having taken the
place as q source OF financial strain of
that Of the grain harvest
4 distinct hope Of the financial commu-
u!ty is undoubtedly that Il this stTingen-
~ IS at all Increased the Secretary OF the
Treasury viii at once come to the relief
Of the money market There is indeed
very little doubt that the Secretary viii