The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-01
TEE rINANC IAL SITUATION.

ACrlDP0 a. one Oh J0ObC NIhuALk hnA w.
TO the heart Of the active spectators on
tho floor OF the Stock Exchange. IL was a
market which preserved an extremely
strong undertone and in which fluctuations
were narrow, so that II was from a strictly
speculative point Of view fairly safe to buy
stocks when they we're weak for a quick
rally or sell them when they were strong
for a little decline. This sort OF a market.
however, IL not one from which the general
run Of customers Of Wall Street commits
sion houses usually derives any advantage,
and it lie, on the contrary, OF a sort to dis
concert and wear out the patience Of the
speculative public, especially II It comes
after a long period OF rising prices. Such
a market usually finds a great many stocks
in the hands OF people whose financial re-
sources are not large and who, when quota
tions for securities begin to wabble back
and forth instead Of pursuing a steady
upward movement, are apt to become
doubtful whether they should continue to
bold stocks or not. Aselling movement thus
begun usually causes stop loss orders to be
executed and Ii helped along more or less
briskly by speculative operations for the
fall. so thai the market gradually tends to
a lower level. Something like his Is appar-
emily what happened in Wal Street last
week. The course Of the market. while ner-
vous and irregular, was downward. Out
and out manipulation for the decline was
much in evidence, but undoubtedly a great
deal Of genuine liquidation occurred. IL
was said that some Of the large Western
speculative houses threw over a great por-
ton Of their holdings, and two or three OF
the prominent traders, men whose dealings
are. as a rule, much larger a is commonly
estimated, sold stocks with great d
Speaking broadly, the market showed the
effect Of those general influences making for
a decline that always present themselves
after a long continued rise In values when
for various reasons financial powers OF the
fret rank cease buying and cave the market
to itself. OF course, speculation for the rise
in Wall Street last week had to contend in
addition to the prevailing feeling Of uncer-
tainty over the money situation with twonew
adverse developments, the capture OF the
Democratic party in this State by a SOCIALIST
candidate for Governor and the growing
probability that our Government would be
compelled to make an armed Intervention IN
Cuba. The result OF the Democratic State
convention at Buffalo was a good deal Of a
surprise in the financial district. Every one
there knew that Mr.. Hearst was to run
for Governor on some ticket or other, would
undoubtedly attract a large following and
that he had become a force that had TO be
reckoned with in political matters; but
it was thought wholly unlikely that he
could succeed in getting himself made the
regular Democratic candidate. and now
that he has done this it is admitted that
his chances Of election are increased. n
be4ief is immensely strong in the financial
community that Mr.. Hearst will be beaten
at the polls; yet it is rightly held to be a
serious matter Z pm the financial point OF
view that a man Of his views and aims n
methods should have been enabled to attain
such p~rominenoe and WELD such power in
the politics of the State and the country.
Manifestly. il he were elected Governor
there would be 80 far as possible a recast-
ing OF all the State commissions having
supervision Of the railroads, gas com
NAMES and similar corporations. and indeed
the platform on which he is running seems
to call for a general meddling with cor
porate enterprises. We are living in times.
seemingly, when the assumption OF a num-
Der of people who have gathered them
selves together and taken control OF the
Democratic party organization is thai any
man in the country who liz solvent Is not
respectable. 1t is perhaps well, hithas come
TO this. that the issue thus raised should
be fought out in this State right at the
present hour.
While 1t did not appear that the Cuban
troubles exercised any great force in de-
pressing the market last week their IN
fuence was still not good. II we have to
C the island of Cuba for a length and
contingencies arise which involve the send
ing Of a great many soldiers there the fact
NAV involve an extra session OF Congress.
since the appropriations Of money made at
the last session Of Congress and now at the
command Of the Var Department can
hardly be sufficient for such undertaking.
At the same time it seems to be the current
impression in Washington that an extra
session Of Congress will not be needed.
The necessity. for spending money in con-
nection with the affair has. howev1. a rather
direct bearing upon the willingness OF the
Secretary Of the Treasury to place public
funds in the national banks in relief OF the
money situation. 1t il the undisputed pur-
pose Of our Government to merely Temporal
riIy establish a provisional government in
Cuba, pending another national election on
the island, which will take place under our
supervision. Dur wish is, in other words
to give Cuba another chance to establish
the fact that she can govern herself. With
our friendly disposition thus clear the great
probabilities seem to be hat nothing more
than petty squabbles will arise during the
term Of our second possession OF h island
| It does not seem open to question that the
general financial position has considerably
improved in the last few days; and 1t If
therefore a matter Of some wonderment why
holders OF stocks who have been all along
stoutly asserting their conviction tina
doubt as to the course Of money rates
formed the only drawback worth mention
ing to an advance in prices should sel
their stocks lust when doubt in this re-
spect ia beginning to clear up. We know
that We have brought into the country
since the first OF September approximately
$40. OOO, 600 OF new gold. The bank nOt'
circulation Of the country has increased
somewhat in this period, and now tn
Government has lust put S26,OOO,OOO o.
public money in the national bank deposi
taries in various parts Of the country, ~