The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-04-15
The Hartman Case Stirred UP
Much Anxiety Among
Railroads.
REC0vERlEs HAD BEEN RAPID
The Money Situation Is Not Tc
Secure and the Future Is
Not Bright.

NEW YORK. April 14.--The renewed
decline which occurred last week on
the stock Exchange was not ut all
abnormal the particular explanations
that 1t wns caused by the copper mar
kets weakness, by the Interstate Com
hiercc Commissions request for a man
damus to make Hartman answer ques-
tons, or by the new railway note
Issues. Were In fact superftous
Every one knows that IL. for reasons
not Immediately before the eyes or
wall street SPECTATORS prices had
heen going up last week, VIC should
duly have had assigned to us az
chuscs, the reduction in the Bank OF
England rate. tho easy money market
mere, and the relatively high "condi-
lion percentage" OF winter wheat The
truth OF the matter is that the stock
market has been passing through tho
lhlrd stage OF an important rcuctit IN.
INC severe and prolonged collapse.
win eliminating panic day" comes
hrst; all Wall street then abandona
nope. Rapid recovery or one fourtf,
or whereabouts OF the previous loss
comes next; professional Wall Street
AZ then Invariably convinced that not,,
ing mas really happened: that II was
ohis manipulated decline, JUST
as tilis comfortable belief has been
.uopled' aown again go prices This
,st'ieir.' IN lis turn. introduces the
iourth chapter. made IN of du,n.s.
ana inertla. Whether we are nenr M
stage or whether the third stage i. -
ne prolonged. Is the question of ,ba
day. u lhe
Is true that In 1919 the flownw,ra
u'lil or prices. once fairly started IN
~ npf nstime, continued like a rollins,
a. , LII untii II took it's final plunge
-, ,aon midsummer. But analogics with
~ aireadS failed too generally
10 be trusted. Nothing In the snrir =
" inc rich mems panic ycar" nro.
MiHed genuine parallel to LAST ,,nrtf,
=. uass OF Tying rumors, Of a market
ponihs on open mouthcd at the stru.-
9 toe OF some hidden victim or OF sud
zen relief through pledge or orr raiI-
wa! credit to foreign usurcrs occnrra1
~ July and August, 1903, and their oc-
~. sLce' as we now can see. proved
.,ie efd was near. All that, the
present market has behind II. rron
failures. European disasters. no,,tI,.a
Unset tiements might easily disturb the
EQUILIBRIUM attained by tho ending :,
me shocks of alternate reaction aaf
reco very but 80 might bumper h,r
Fests unexpected ease OF none,
nhroad. and q change In the publlc's a t.
tp"hsuS Investments
The relaxation in money rate.
brought about some interesting 70
suits In Wall Street, call money drr;n :,
last week ruled La to nor cont
below the same week a year arc. anI
time money l1-2 per cent. below RI.
same period. But on the other hand
merchants paper had to pay last
week Tor discount fully / per cent
more than 1t paid at this time In
1906.
rms discrepancy might nc explained
IN several ways-by the fact FOR In
stance. that while Stock Exchange dc.
innnds, which create high rates In
loans on collateral. have been very
greatly curtailed. the volume OF or
binary mercantile business and the
consequent commercial need for money
has apparently not been reduced at All,
This explanation is not wholly ndc-
quate; because actual and prolonged
reduction in the demand for capital. by
wall street proper. must neccssarily
send the bankH into SO inviting q fielt
OF investment as q per cent. double
name merchants paper 1t certainly
cannot be expected that the Treasury :
s2o,000.0oo or se5,ooo.Oo0 disbursement,
of cash to the New York money mar.
kct Will be exclusively reserved fol
use OF the Stock Exchange.
But this is not the only discrepancy
While Wall Street call and time loan.
stand It these easy rates the open mar
kct price of money is as per cent
higher at London than it was at thi.
time last year: is per cent highe,
at Berlin, and 3-S per cent. higher
at Paris. Considering also that these
European discount rates arc very much
above tho usual April level. there i.
no need to he surprised THAI foreigt
exchange has lately been moving dc
cidedly against ns, That. 1t should b.
remembered Is In fact legitimate In
cldent of this time OF year; our Ion
exchange rates during March, and OH
import OF gold at that time. We're ut
tcrIy abnormal