The Washington times., 1907-11-17
TRYING WEEK
IN WALL STREET,
GOLD COMING IN
Recovery Must Be Slow
to Be Healthful-Cry
for Currency.
Bears in Saddle and Are
Driving at st. Paul
Shares.

NEW YORK. Nov. 16.-It has been q
very trying week in the stock market.
The long stretch of weakness covering
period OF more than a year, with such
enormous losses IN security values as
10 stagger the men Of millions who
EVc-e the chief owners Of securities, ana
reaching 4 climax in the last few weeks
In the panic of prosperity, is very likely
to have an aftermath.
For months the word has gone forth
that it was a rich mans panic. and
that Il would not intcfere in any way
with the industrial or commercial pros
perity. The rich men stood it 1ust as
long as they could, and then some Of
them went by the board, shorn OF many
millions. and only TIE wise men who hdG
forseseen the conditions were able 10
step into the breach and check the
dOwnWad turn.
But you can not hit Wall Street wtth-
out ipjuring the whole business fabric.
even though it was many months after
the value Of securities had deprecated
nearly SO 000. 0O0. zoo before the effect was
evident IN industrial and commercial
depression.
Money Taken From Trade,
No bank can pay all its depositors at
once. No bank can turn its collateral
into currency in trOublOus times with
out sacrificing values TO a disastrous
limit. With confidence shaken. the rush
for deposits breaks banks. The deposits
taken out do not ind their way into
regular channels of trade. and imme-
diately panic results.
The recovery at best is slow. The
banks Of New York city have worked
wonders in the way OF finding relief fOr
conditions. They have imported, or viii
import, some $50 000, 900 gold from Europe
They viii not let the per cent bank
rate Of the Bank Of England check the
movement and with an per cent rate
they VIII still bring gold this way. They
have had 10 take care OF their custom
ers as best they could, tide the Trust
Company Of America over the stones,
and save the Lincoln Trust. OF course
they have been assisted. as they should
have been. by the Government. through
IN Treasury Department.
Some S2l3, ,545 OF public moneys were
deposited in national banks OF deposit
The Secretary Of the Treasury may
take whatever security he deems proper
for deposits. He cannot issue cur
rency for circulation except on Govern
ment bonds. The banks have taken out
some 81. OO).0OO new security on Comp
troller Ridgely's plan Of depositing Gov
eminent bonds and then substituting
savings banks collateral for Govern
ment deposits Savings banks are espe-
cially careful in the kind of investments.
so that their collateral is usually worth
face of investment or more. Municipal
bonds form the best collateral of tins
character.
Cry for Currency Continues.
And yet with all this new money-the
gold from Europe, the Government de
posts and the new circulation-the cry
for currency goes up from one end Of
the land to the other, with the single
exception of Washington. where they
make It and the Government constantly
puts It into circulation.
The business Of the country is done
on one part cash and nine parts con-
fidence and when confidence is disturb
ed there is trouble. And the final recov-
cry must come from the return Of con-
fidence. They are doing business in
many cities today on confidence, con-
hdence in the certificates Of clearing
houses and mercantile and nanufactur-
ing concern but this same confidence
must be general before the recovery
Will be geneFal.
Some improper and monumental
methods by certain New York bankers
helped to destroy confidence and the
reaping Of the wage in the death OF ex-
President Barney, Of the Knickerbocker
Trust Company. on Friday OF this week.
was another burden on confidence.
Stocks at Bargain Prices.
New York Central also made a new
low record, because OF the enormous
expenses that the company is assuming
in connection with its various extensive
improvements.
Both these stocks have long been con-
sidsred "as good as gold" and for the
first time in many years they are down
TO the low point. The average price Of
railroad stocks today is s24, the low
est since McKinley's second election.
The losses Of the week average from
? to points
The closing down Of mills and the
throwing out OF workmen here and
there is the most positive information
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