The Washington herald., 1907-08-26


Entitled TO withdraw About Five
Million Dollars In American Gold.
New York, Aug. Eff in any quar-
ter it has been supposed that the rally
in the market following the delivery
Of the Presidents speech ECFrovince-
town, on Tuesday last. indicated that
Wall street was satisfied with the ut
ter2nces OF the Executive. no greater
mistake could well have been made.
Wall streets feelings, and by Wall
street may be understood the investing
public throughout the length and
breadth of this country were hardly
those Of disappointment. for nothing
Of a reassuriRg nature had been ex-
pected. bat Of patient resignation to a
policy the continuance Of which must
result not only In further hardship to
the owners of securities. but In the
serious disturbance 10 every important
industry in the United states
Loans Are Being Contracted.
The fact that the market advanced
after the delivery OF the Presidents
speech only proved that for the time
being liquidation had run its course,
and that the street was in a condition
TO withstand almost any kind Of ad-
verse influence. Brokerage houses are
now carrying very small lines OF stock,
and in nearly all cases their loan ac-
counts are smaller than at any time in
recent years. One Of the most i'm
portant firms in the street, a house
with a large and influential clientele,
reports that its loans are now smaller
than at any time in fifteen years. and
another house, which al times in the
past had loans in excess OF $40,000,000,
Is to-day borrowing not more than
about onc~tenth OF that amount. Per-
haps the most active commission house
I Of all was the one which closed up its
affairs ana retired from business a few
months ago. and bankers mention
great number OF instances showing that
/ loans Of brokers are only a fraction Of
what they were a year or two ago. X
IS interesting TO trace where the stock
sold by these houses has gone TO. and
I
corporations throw considerable light
on the subject.
Small Investor Active
Unquestionably a large amount Of
stock has been taken out of the street
for investment and a COED deal still
goes out daily. Practically every large
/ railroad shows a substantial increase
| In the number Of its stockholders as a
result Of the distribution Of large spec
ulative lines Of securities among small
/ investors, but the important fact IS
made clear that it is the small inves-
/ TOR who has been buying. and that the
large and better-informed investor
/ continues 20 hold Off. apprehensive Of
I what may follow the present period Of
uncertainty. Already there are iudica-
lions that the small investor is be-
/ coming satiated. and IL can only be
( surmised what may happen between
the time when his buying resources
/ are all used up and the time when the
/ large investor feels sufficiently en-
/ couragcd 10 put his idle capital into
/ securities
Germany May Get s5,OOO,OOo.
Upward Of 100000 gold has in the
past week been shipped to Germany.
and the probability IS that more viii
before long seek the same destination.
( The situation in Berlin is not very
strong, and bankers are apprehensive
that it may become considerably worse
/ Estimates Of the amouct OF gold which
New York may be obliged to send 10
I Germany place the total at not less
than 5000 600, and the shipments viii
/ probably be made. even though New
/ York needs the gold, simply for the
! reason that the German capital needs
I il more The Europeans have refused
20 take our bills. because they mistrust
our financial credit. and the only way
10 assure them that this country is all
right is TO send what is better than
/ bills
The time money market has become
/ even stronger in the past week. and
as the movements Of exchange at in
| terror cities make IL clear that cur
/ rency must soon be sent out in guam
1 tity for the handling OF the years
/ crops. there is little reason TO hope for
I any relaxation of the rate in the near
/ future The prevailing conditions in
/ the money market. especially If intensi-
/ fed by exports of gold, must continue
90 work hardship on the commercial
/ interests, for the measure OF relief pro-
I posed by the Treasury is altogether
too small to effect any substantial i'm
I provement in view OF the seriousness
OF the situation both here and in
Europe
Cause OF Trouble Abroad.
In an important sense exports Of
gold at this time should be viewed
with satisfaction as tending to a res
/ toration Of confidence on the other
side. and the metal would come back
after our crops had begun to move
/ out in volume. In a large measure the
! conditions abroad are a result OF con
/ ditions here and on developments in
/ the United States more than on any
thing else must depend the future
! course OF the worlds markets.
1t is not true that other markets
/ have suffered 10 anything like the
/ same extent as ours. The strength Of
Canadian Pacific stock is a fair indica-
/ ton OF the falsity of such q contention
/ Operating under practically similar
/ conditions as TO traffic. there is no
reason other than political why the
/ stock of this road should sell on a ~
/ per cent basis while the stocks of the
/ Bill roads. for instance. in the United
/ States are selling on q basis TO yield
! about 6 per cent on the market price.
/ 1t viii be interesting 10 watch the rela-
! tive progress of Canada and the United
/ states in the next year, and it may be
/ that the greater stability of business