The Washington herald., 1907-08-12

Il
or embarrassment ; Wall Street. or even
giving rise 10 rumors OF any impending.
Than this no hstter indication of fnan-
cial strength ard conservatism on the
part Of brokerage houses could be de-
sired. Leading banking institutions re-
ported that there was no disturbance Of
any kind beyond the mere decline in the
price Of securities, and that it was not
necessary, even at the worst depths OF
the decline. to caH loans, as borrowers
sent in additional collateral. or in other
ways made good the impairment of mar
gins caused by the drop in prices wher-
ever this went so far as 10 leave room
for question as 10 the entire safety Of
the loan.
Advance in Time Money Felt.
That there should be sufficient calling
Of loans TO make more active market,
temporarily, for call funds was entirely
natural and that some Of the calling in
Of funds was more in the way of prepa-
ration on the part Of the banks 10 make
a good return under the expected call OF
the Comptroller Of the Currency for q
statement OF condition than OF a result
OF the decline IN the stock market there
is very good reason 10 believe. After ALL
a per cent rate for call money could
hardly be called high, but II is in the
advance in time money THAI Wall Street
has found one of the greatest obstacles
TO an advance IN prices, and it remains
10 be seen whether any important relief
from this can come within the next few
months
Ordinarily, the trust companies are able
In the fall season to relieve the situation
by assuming some Of the loans OF the na-
rional banks, but this year, on account Of
the relatively high rates that have pre-
vailed 4Or many months past, those in
stituUons are already well loaned up and
viii not. therefore, be able 70 come for
ward with as large a supply of lendable
funds as usual in the coming fall.
Situation Bad in Europe.
In Europe the situation is worse than
at home. and some economists think il
is very much worse. None of the great
foreign banks is in what could be called
strong position relatively 10 the needs
Of business at the preseUt time, and. while
in Europe, as at home. there are indica-
Sions Of a slowing down Of commercial
activities, these refer 10 the latter end OF
the present. year, or even farther into the
future and promise little relief for the
money markets for many weeks 10 come.
Last weeks liquidation In the stock
market should. OF course, tend to an inn
provement in money conditions, unless
counteracted by a recurrence Of untimely
operations 10 put prices up IN an ag-
sressive way, such as unquestionably
wrought mischief toward the end Of July.
What is needed now is a period Of quiet
TeCuperatiOn during which money may
accumulate and public confidence, rudely
shaken By recent events, may be slowly
restored and solidifed. The restoration
OF public confidence cannot possibly come
from an advance in the price Of securities
made in total disregard Of important con
siderations, OF which one is the unsatis-
factory conditions In money, and another,
and the greater one, Is the anti-corpora-
tion craze which began with the Federal
administration, but has now extended to
the governments Of many Of the Individual
States. In its newest forms. it is even
more dangerous than IN its earlier mani
festations.
Wall Street View of Trust Control.
There has recently been a good deal OF
rumor both here and IN Washington TO
the effect that the Department Of Justice
intends to institute proceedings against
the Chicago and Alton Railroad for the
alleged granting Of rate concessions, the
alleged acceptance Of which by the Stand
ard Oil Company Of Indiana has been
made the basis Of the extraordinary fine
imposed upon the latter company by
Judge Lands It is difficult to believe
that anything Of the kind can be con
templated. 1t is safe to say that not
only was the ordinary stOckholdcr Of Chi
cago and Alton unaware Of any conces-
sion 10 the Standard OIL Company-as-
suEning concessions to have been made
but that he would have opposed the max
ing of one had he been consulted in the
matter. What IS made clear is that the
imposition OF fine is not a cure for the
evil alleged 20 have been discovered In
the case wherein a judge has imposed
the heaviest fine ever imposed in this
country An official of a railroad acting
without the consent OF his stockholders.
and not even directly responsible to them.
might make a contract with an industrial
concern TO carry its freight at certain
concession and this might afterward be
made the basis Of fines of very great
aggregate amount by the imposition Of
the maximum penalty for each separate
shipment made In accordance with the
concession. and these fines might be i'm
posed not only upon the concern that had
received the favor but upon the unfor-
tunate railroad that had been the victim
OS them.
ImPrisonment rs Cure.
Clearly the cure is in the Imprisonment
Of the offenders, and failing this it would
seem more just and reasonable that the
railroad victimized by the concession
should be reeouped to some measure out
Of the fine imposed upon the shipper than
that 1t should be made to pay an addi-
tional penalty. The wonder is that all
the corporation whacklng has not proved
a serious disturbance 10 business. That
Il must inevitably have a decidedly bane-
ful effect on the general prosperity Is
admitted in all commercial and financial
circles. but just at present the activity
in q great many important lines of trade
is greater than IL was earlier in the sea-
son. this being particularly the case in
the dry goods and kindred trades, where
a very hopeful sentiment now prevails
-ae-a-dis,v tha oy4ftool- for fall hfsufnarg