The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-11-18
This a Powerful and Important
Factor OF Absorption and
Distribution.
"a SPIRIT OF HopEFuLNEss
.Financiers Believe That De
pressed Conditions Will Soon
Pass Away.

NEW YORK, November 17.-Affairs
in the financial centre moved toward
adjustment last week, and in the stock
market itself there was an undertont
OF confidence on this account. evei,
while the surface of tho market was
more or less disturbed by after-effects
OF the recent violent perturbation. AS
Is Invariably the case after such an
experience. there remains certain
amount of wreckage to be cleared
away. The mere fact that this work
has gone on Is in itself evidence OF
tho conviction that conditions are moro
propitious for making 1t successful
Great banking interests and capitalists
with a near interest In Individual prop
critics take large offerings of them in
the market In times of panic Tor the
purpose OF opposing obstacles TO the
disastrous break in prices.
Clear Up by Resale.
Such purchases come back on the
market for sale at the first opportunity.
Accounts with commission houses also
are carried through times OF peril, with
the understanding that they are 10 be
reduced as soon as can be done without
entire sacrifice
Z During the late upheaval also 1t Is
well known that accounts were taken
over from embarrassed houses bodily
p in order to save them from shipwrccls,
2 and 1t is believed that the past week
has seen the clearing up OF some Of
this by resale of securities In the mar
ket
With the subsistence Of the price
level back to an attractive basis un-
der these operations there has de-
reloped again the investment demand
in small lots. which is so notable q
feature OF the present situation in the
securities market. Transfer agents OF
all the great corporations are worked
overtime in recording the holdings of
new stockholders in small lots. This
kind OF buying forms, in the aggre-
gate. more important factor of abb
sorption and redistribution than the much
larger transactions of the ordinary
dealings OH margin. which are taken
with the mere purpose of resale at a
profit. which are held with borrowed
money. and which are vulnerable there
fore. to any shock to credit and liable
TO be forced on n weak market at the
most unpropitious times.
With the decline in the rates for
money on call. there has been Il stir
ring of activity also In this class OF
operations. but 1t has been frowned
upon by bankers and money LENDERS
and by the leading minds bent on the
remedial measures from which are
hoped the restoration of norman con6i-
lions a, an early day. The small in
yestment buying, which is thus en-
outraged. is in itself an Important
remedial measure hy bringing ,ut sums
OF money which had been withdrawn
from the channels of banking, and
which are thus restored to the work
OF reha Utilization. 1t is the occasion
Of universal observation in the securi-
ties market that except during the
operations of forced liquidation above
referred to. the supply OF stocks and
bonds offering the market has become
scarce. and orders to buy arc filled
only by advancing bids.
Consequences of Upheaval.
On the side of the general situation
the stock market has mad to face some
consequences OF the late upheaval at
the financial centre which conform 10
the expectation indicated in the con-
Nllsfve readjustmenl OF prices of Sc
curltleS affected earlier. 1t was early
foreseen that the dislocation OF the
machinery of the financial and COM
nercial exchange would have the e.
1ect of throwing obstacles in the way
of maintaining business activity at
Its high level. Reduction of output.
cutting down OF working forces. can
collation. of contracts, fall in prices
of commodities and retrcnchment in
. all forms. together With restriction of
orders for future delivery, which form
me burden of incoming reports, occa-
sion no surprise to.4speculative senti-
ment hlclt' is''registered earliest and
most accu. ately IN the securities mar
ket. These deveio pments had found
thelr reflection in the earlier events In
that medium.
me present market Is inclined to
Te1lect rather the opinions on the fu-
ture. The action of the market NAV
be fairly interpreted as Offering a sooa
proportion of hopefulness for a short
duration of the crisis and for an early
restoration of normal conditions ana
Il renewed start towards the revival
OF the prosperous activities in which
1he country was previously engaged.
coincidence Is felt In the solid basis of
mat prosperity, and it Is believed that
me experience through which the conn
Try is passing contains In itself the
forces OF correction of the conditions
which Were placing limit on that
a lower price level for
- -, y" conspicuous example
OF the line upon which this needed
reimbursement is now working. The
lover prices of securities also is having
me erect OF attracting capital mol
only from domestic, but from foreign
sources, thus unlocking a force of
rep!enishment, the lack of which had
come to be the leading factor In bring.
lng the course of progress to a stand
still,
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AZ TIGHT MONEY Am cnl