Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-01-05
BULLS AND BEARS
Special Dispatch to The Star.

1 Special Dispatch to The Star.
! NEW YORK. January 5.-Men of conser-
vative minds refused to sell stocks yester-
day afternoon in company with the specula-
tive mob that tumbled securities overheard
merely because Jacob Schiff in his chamber
| or commerce address predicted a panic In
4 the future unless the reform Of the none
tary system of the country were immediate
/ ly accomplished. They considered that Mr..
| Sehin would not have spoken as he did IL
the danger were immediate and that, rath-
| er, he believed the situation good enough
| now for 1t to be the right time to take
measures to prevent panic at some subse-
/, quent day.
Money conditions are undoubtedly work
| ing toward the normal and Mr.. Schiffs idea
| is evidently to paraphrase sound maxim
| Of public policy. that In times of ease prepa-
ration should be made for trouble. More
over. 1t was pointed out by the conserva-
| tives yesterday, that IL the foundations Of
the stock market were sufficiently well es-
| tablished to endure the shock of Mr.. Van
| derlip's warning early In October on the
eve of one of the tightest money markets
| that Wall street has ever seen and to make
substantial price advances all found
! through the subsequent period of srrin-
gency. there was no reason to regard the
securities outlook with apprehension be-
u
| OF the stringent period.
| The fact also that Mr.. Schiff made very
much the same kind of a speech before the
chamber of commerce on November O, 1892.
when Wall street had the last wild money
market prior to the one just ending goes
| to show that the prophecy of disaster
should not be applied too directly to the
situation today.
II
views OF men competent to form and ex-
| press opinions on the subject of Mr. Schiff's
address will be found to range all the way
from practical agreement with the ideas
he expressed to almost complete opposition
What eventual agreement the financial doc
tors may try to reach will In the lend have
TO De submitted to Congress IL reform of
the monetary system is attempted along
the lines indicated by Messrs.- Shaw and
Schfff. and just at present the disposition
OF the financial community is to urge con-
gressional action.
Bankers could do great deal themselves
IL they maintained larger cash reserves.
but the difficulty OF reconciling individual
interests with the good OF the whole seems
to be insuperable by voluntary effort.
Meanwhile 1t Is interesting to note that Mr.
Schin whacked Mr.. Shaw Numerically for
not doing a thing-making treasury de-
posts In the banks-which would certainly
be regarded in many quarters as a measure
OF doubtful legality and apparently an
extra legal measure, anyway.
1t Is true that Mr.. Shaw has heretofore
invited criticism of some of his acts as
without warrant IN law, but nevertheless
the fact remains that Ii he should take
money out Of the treasury now and place
1t in the banks on his own Interpretation
Of the law governing his act, he would in
vfte and probably cause, an immediate
congressional inquiry into the matter. If
such an inquiry could be made to bring
home to Congress the necessity of some
new monetary legislation Mr.. Shaw might
however be justified in king n pf
himself.
Conjecture and gossip about the forthcom-
ing dividend declaration on Union Pacific
are plentiful, although nothing of authori-
tative origin seems to have appeared. Opin-
ions are expressed in some good quarters
that 2h per cent will be declared for the
half year and 1 per cent extra, making 6
per cent for the year.
E. H. Hartman is notorious for at least
an alleged .lliberality in the matter of divi-
dends. but it is said that In the present case
he Is not averse to an extra disbursement
The true and rather striking statement con-
corning Hartman is made by Wall street
news bureau that he Does not absolutely
dictate the policy of the Union Pacific, but
there Is no desire on the part of other in
terests in the company to override him.
Persons of geographical bent have amused
themselves lately with railroad maps show
ing how the Union Pacific system could be
linked with the Illinois Central Qn which
e. H. Hartman Is an important factor)
the Louisville and Nashville and the Allan
tic Coast line. Omaha. Chicago. Cairo and
Louisville loom up as important points in
these travels Of fancy, and since the South
ern railway divides control of the Chicago
Indianapolis and Louisville with the Louis
villa ID c,r,s1I ~
way. too, is included in these interesting
imaginings.
A weIl-informed writer on Wall street
| matters says Of the Schiff address:
Similar remarks have been made ever
since the enactment of the present laws
governing national bank note issue and re-
| demption and the Bland law governing sill
yer certificates. The defects of the cur
rency system are the same the year around,
but they become glazing at the end Of every
year. This is the time Of year when they
are thought most about. Some of these
years, unless there Is Improvement there
might become a stringency at the end of
December which would create panic, and
no small panic at that. 1t matters very
little whether money rules at 100 per cent
for week or two provided there Is enough
to go around
bought rights last month. They sold stocks
and bought London calls for the same rea-
son to insure that there would be enough
money to go around. It is well to call at
tention now to the need OF intelligent legls-
lation on money, but there seems no rea-
son to apply such need to the present sit
uation as far as stock speculation is con-
cerned, when the danger Is all over and
money is going back to a per cent basis
as fast as can be reasonably expected.
Il
Rather interesting but not otherwise
worthy IS the Enthusiastically cynical
view expressed by portion Of the fnan-
ciai community of Mr.. Schin's address. 1t
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