The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-03-18
VALUES CUT $4,000, 600, 900
BY RECENT UNLOADING
Roosevelt Not as Radical as Some
Writers Would Have the
Public Believe.
RAILWAY LAWS THE BoeIE
No Great Advance Likely Until
the Money Situation Is
Improved.
Especial TO The TImes. Dispatch ]


NEW YORK, March l6.-..Thc stock
market situation has been unqucstion-
ably improved by recent liquidation,
estimated at between $1.7O0 100000 to
81, 900, 100000 In values, That such an
enormous shrinkage could take place
within the comparatively short period
OF six months without causing q single
failure OF consequence is emphatic
proof Of general soundncss in the
situation. These losses were often
chiefly on paper, and fell with greatest
hcaVness upon rich holders or large
operators, who were abundnntly able /
to meet them. Fortunately the specu-
1ative public suffered comparatively 1
little. 1t lis perhaps premature to say /
that liquidation has entirely exhausted /
itself Yet many or the influences de-
pressing the market have been amply |
discounted, and some OF them should
soon begin to moderate, If not disap- |
pear altogether. In all probability the |
worst Of the strain upon the money |
market WIN coon be over 1t liz true |
that the bank reserves are uncom-
fortably low: many banks still being |
below the legal limit Quite likely !
very stringent rates may be witnessed
between now and the list OF April: for
Western banks have been carrying
large balances here to take advantage
OF high interest rates, and these sums
must now be withdrawn to meet the
exceptional interior demands which al
ways assert themselves at this sea-
son. Then again, some unusual nego-
tiations have to be financed at this
time, and Interest and dividend dis
bursements often cause temporary
Htringency.
Much dependence has been placed
upon gold imports for relief In case Of
necessity since we are In position
to command gold, II we must. but our
international bankers are not over
anxious to take gold from abroad
against the VIII of foreign holders.
for the reason that they NUT look
to London, Berlin. Paris etc. for the
placing OF Forthcoming security issues;
and 1t would be- poor policy to intcn-
sify the prejudice which already exiats
over there against some OF the Amer
ican financial methods, 1 say methods.
because 1t Is against these more than
our securities that foreign criticisms
are directed. Whatever our foreign
friends may say about American high
finance" they have no cause for COM
plant regarding American Investments,
which have proved more profitable and
substantial than those made in any
other portion OF the world, There Is no
doubt but that ms soon as we demon
strate our earnestness of purpose In
corporation and railroad reform. that
American stocks and bonds will sell on
permanently higher level in all the
European markets; simply AS a mark
of Increased confidence.
Natural Causes.
A great deal OF uncaslness now exists
regarding prospective railroad legisla-
ton. The bulk OF tho decline in Sc
curitics since last summer has been
Fnley due to natural and economic
canaes, when have been repeatedly
explained in these advices. Mr.. Roose-
welt, however, H. receiving great deal
more blame for present conditions In
tho market than he is really entitled
TO. or course. the mere proposal from
such source OF legislation vitality
affecting railroad management is un-
settling. Yet these proposed reforms
would have been neither possible MOI
probable had 1t not been for past mis-.
deeds.
Tile responsibility should. therefore
lie placed upon the authors OF the lat,
ter and not upon those who are tax.
ii.c the initiative in placing American
railroads and corporations upon
higher plane and beyond criticism
Very. likely Mr. Roosevelt Is not 81
radical as he seems; and by discus
sions with our representative railroad
manheers 1t seems certain that he vii
suggest legislation fair to the rail
ro0ds and satisfactory to public opln
len. Something must be done to con
c!'iatc the latter; some larger gov
eminent control OF these powerful cor
porntions is inevitable; and 1t seem
far wiser TO assist the President in do
VicinE sane general measures than I
face the radicallsn and confusion tina
would be inevitable II the questio
were left to the hostile attacks of al
our State legislatures, no two OF whic
would agree. 1t Is a welcome slgr
therefore. to see that number OF on
abest practical railroad men are goln
to confer with the President. The re
suit 1t Is to be hoped, will mark
new and better era In American rail
road affairs; failure in this wished
for result will certainly, give n tire
niendous impetus to government owr
crshp. and that would involve us N
train of evils vastly worse than thos
we seek to escape.
Cost Of Operating.
Perhaps tho most unsatisfactory fct
ture OF the market is the declinin
tendency Of net railroad earnings ari
Ing from increased costs OF operate
This is really serious problem. a
ready a number OF roads arc lookir
about for the cutting off OF unnece
sary OUTLAWS.
Retrenchment has commenced M
projected improvements are being Gu
tailed or postpone, Should these to-
denotes continue, as they probab
will, there will inevitably DO conside
able discussion about the maintenan
Of dividends. especially those Will
were recently increased more probab
to "a financial operations than I
any other purpose. Such inlluencs
however, have been largely discount
by the recent declines, and ma
stocks would now be on a satisfacto
Investment basis We're tho moneta
outlook more clear. That and
prospective conference with the a
ministration on railroad affairs arc I
controlling elements In the market il
now. Should they take favoral
turn tho market will rendily respo
with higher prices, Until the Az
settlements are passed more or l,
@ stringency may he anticipated, but {
ditlonal help can he expected fr
Secretary Cnrtelyou II 1t becomes
solutely necessary. After the mid
OF April, II not before, substantial 4
provelnent should set In; Tor curat
4 forces are steadily at work. especia
az the severe recent liquidation v
certainly prove beneficial to the mo,