Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-08-18

as usual. They are imbued with the Idea
that the whole world is against them and
that they are being cruelty prosecuted by
the political powers They have been not
only frightened by what has happened, but
they are really hurt, hurt both as to their
feelings and their bank accounts. In some
quarters they are grouping themselves to-
gether for defense and forming behind the
properties in which they are especially in
terested.
One of the strongest combina tons of this
sort was formed early in the week, and
specific campaign was agreed upon for the
protection Of two or three leading stocks,
notably Union Pacific, Southern Pacific and
Reading. The plan as first announced was
that Kuhn, Loeb & Co. had been made the
managers of aggressive bull movement.
On the strength of this gossip the market
On Tuesday had a sharp rally. Later on in
formation about the campaign was modified
and the corrected version that certain
powerful New York and Philadelphia in
terests had agreed to come to the support
of the market to the extent of checking
further scared liquidation and holding prices
against further ruinous decline. The man.
agement Of this program was intrusted to
Otto Kahn Of Kuhn, Loeb & Co., and the
story in exaggerated and incorrect form
found circulation. The news, nevertheless,
served as tonic and called the attention Of
other strong interests to the need Of getting
behind their own properties If they would
save a jeopardized market situation. This
has been generally done and today there
are dozen groups In existence formed to
take such stock as may be offered at sacr-
flee sale--that is, provided the stuff does not
come out in avalanches. This fact is now
very generally known in Wall street and
promises to act as a cure for the fright
which was spreading over the entire mar
bot ir civ, iIa- 70 hot
renced at the time of the celebrated faith
cure when the banking houses of Wall
street subscribed $5O,0OOOOO to tide over
stringent money phase. The mere fact of
fund Of S5OO00.OO0 served the same purpose
as though the money had been actually put
up. 1t marked the bottom of the decline
and was a signal for restored confidence.
On this occasion action for Improvement Is
likely to be slow, but there is reasonable
assurance that the market Is humping on
the bottom and that within very short lmi-
tatiOnS the average low figures OF the week
will not be broken through. 1t Is certain
that stocks bought around the average OF
the week Will be more advantageously &C
quired than ten days or two weeks ago
To q superficial view the harsh break of
the last fortnight was due to Standard OIL
liquidation. a consequence of the Lands
fine Of $50 900, and to his accompanying
breakers That this was an important fac
tor admits Of no question. but the Chicago
judge did not do 1t all. 1t so happened that
large sums Of money were due on a variety
of undertakings and kindred commitments.
These obligations became due about the
same time and the principals being unable to
secure their usual accommodations at their
banks were obliged to sell securities to get
the money with which to make good. Inc
stuff came on the market about the same
time, and at the period when 1t was least
able to stand the attack. The slump re-
suited and innumerable explanations were
offered to account for the disaster. The
truth is many causes contributed
*
The explanation that for a time held
highest favor was that Standard Oil. moved
by a sense Of preservation, not unmixed
with revenge, was causing a stock market
smash to give the people an object lesson
of what might happen resulting from con-
tinued political assaults on capital. There
was nothing whatever in this theory. Many
of the people more or less closely identifled
with Standard OIL had been heavy losers IN
the market and were in need of money.
They were badly spread out and were
compelled to make sacrifices to sustain
their positions. 1t Is one thing to talk
about wrecking the world in order to teach
people object lessons. but that sort of thing
doesn't happen except in fiction or IN the
dope dreams of dipsomaniacs Sane men
do not tear down the temples over their
own heads to ruin a lot of Philistines. 1t
is nevertheless true that some Of the Stand
ard Oil people INDUCED in good deal Of
wild talk, some Of which furnished SEEM
ing foundation for the foolish theory re-
ferred to.
The John D. Rockefeller interviews did
not make profound hit. True Mr.. Rookie
Teller denied the interview, but the denial
was not treated seriously. The story bore
surface evidence of fair reportorial &C
curacy, and Is generally accepted as being
passably correct as those things go. The
gloomy picture Of universal ruin which
was drawn by the senior member of the
Standard Oil family was not commonly &C
cepted as being the right view. 1t showed
too much personal grief over recent hap
penlngs. and was voted to be rather narrow
in expression.
The monetary outlook, while furnishing
excuse for some apprehension, is really not
so bad as many people try to make them
selves and the public believe. Non-official
assurances come from Washington having al
most the wight of administration announce
ment that the treasury will at the proper
time release such idle funds have &C
cumulated in it's vaults, thereby furnishing
the funds with which to move the crops
and relieve urgent needs which may I'M
duly Cypress the banking resources 1t Is
figured out that Secretary Cortelyou can
release between S6OOOOOCO and $S0.OO0OOO
treasury money should the emergency re-
qure It, Congress at its last session armed
the Secretary with authority to loosen up
and unlock the treasury vaults The relief
which can flow from that source. supple
menting the capital which can be made
available in the ordinary way. should en-
able the country to get through the strin-
gent period without the entailment of dis
astrous hardship on the real business in
terests Railroads and other corporations
are making virtue Of necessity by cur
falling their demands wherever possible.
They for the most part esteem 1t the part of
greater wisdom to postpone campaigns for
spending money than to pay usurious inter-
est on borrowed money. 1t usually hap
pens that when everybody Is anticipating
for la no Roac