Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-03-17

cur1tleS or this class has been OF inSigniil-
cant proportions since then. We have had
during the past few months an outpouring
of railway bonds and stocks. but they have
only been brought out as money has been
urgently needed by the railways to enlarge
their facilities to handle the enormous traf-
fic of the country. The amount of watered
stock recently offered to investors has been
very small In the bull market. of which
the formation of the steel corporation was
the distinguishing feature. hundreds of mil
lions Of dollars Of watered stock was put
out.
During the past few months prices OF
stocks have been adjusting themselves to
the rates for money. 1t cannot be expected
that stocks will sell on per cent basis
on a per cent money market Some
months ago 1t was believed that money
would be easier after the turn Of the year.
but such has not been the case. We had
a short period OF easier money, but rates
are again tightening. not only here. but
abroad The heavy selling OF stocks this
week, following the enormous liquidation of
the weeks before. has been due almost d.
recty to the condition OF the foreign money
markets. Rates are again going up abroad.
and there seems to be no hope for the mo-
ment for cheap money. This readjustment
of security prices to money prices Is a very
painful process. but 1t seems that 1t must
be gone through with. Violent setbacks In
Wall street. such as has been seen in the
past two months. usually are the signals
for setbacks In the general business of the
country. Just now reports from all the
great industries are highly optimistic, much
more so than they have been in many years
during a period OF security liquidation. 1t
may be that there will be no serious set
back in the business of the country.
But IL the railways cannot raise funds
for improvements on advantageous terms
there can be no question that they will
seriously cut down their orders for ma
terials In this connection It must he re-
membered that about one-half of the entire
steel product in this country Is taken by
the railways in normal times. The enect
four years ago of drastic curtailment OF
railway orders for steel rails was a slump
in the steel business that, had 1t gone
much further, would have wrecked the
steel corporation. Railway managers on
the big systems throughout the country
are curtailing their plans for large ex-
penditures for improvements ana extern
sions and It may be asserted with au-
thority that this will be their policy until
they can raise new capital on more ad-
vantageous terms Ii the railway policy
of curtalment keeps up for any length OF
time It will undoubtedly have its effect
on other Industries. because all our great
industries are correlated. Each one depends
on the others.
The conference of the railway presidents
with Mr.. Roosevelt recalls the secret meet
ing of railway presidents two years ago
In December the day OF the publication
of Mr.. Roosevelt's message to Congress.
The message appeared In Wall street at
noon. Mr.. Roosevelt strongly urged the
necessity of government regulation OF
freight rates. The ma rket began to weaken
an hour or two later and closed very soft
That night a dozen railway presidents met
at the Metropolitan Club and talked things
over They decided that the situation was
very serious when the President of the
United States came out fiat-footed as an
advocate of the fixing of the rate-making
power with the government. The news Of
the meeting leaked out the next day and
stocks began to come into the market The
liquidation developed into panic, which
has since been known as the Lawson
panic because the Boston novelist was at
that time making a big bear campaign in
Amalgamated Copper. and was crying
panic" In the newspapers of America ano
Europe. But Lawson did not make that
panic. He was only the fly on the wheel.
After stocks had broken violently $40 to Sl5
a share Wall street was treasured by
statements from Washington similar to
those that have appeared In the last few
days. that the President was not going to
arnUCk.
The situation today Is really no worse
than il was two years ago, so far as the
administration Is concerned. Mr. Roose-
Welt 8 ideas of today are the ideas that
he held two years ago. Every day or
some eminent financier runs to Wash
ington to see the President and comes
back mbued with the idea that Mr. Roose-
welt Is not nearly bad he Is painted.
The President has a habit OF reassurng
his visitors by referring to the conserva-
tive things he has said In his messages
and speeches. For example, what Amer-
can statesman could have said anything
saner than this. THE large ajorlty OF
the fortunes which now exist In this
tpy have been amassed not by injuring
our people. but as an incident to the con
ferrng of great benefits upon the COM
munty; and this matter what may
have been the conscious purpose of those
amassing them. There Is but the scantiest
justification for most of the cutlery against
the men of wealth as such, and II ought
to be unnecessary to state that any appeal
which directly or indirectly leads to sus-
picion and hatred among ourselves. which
tends to limit opportunity, and therefore
to shut the door of success against poor
men OF talent. and finally, which entails
the possibility of lawlessness and violence.
Is attack upon the fundamental proper
ties Of American citizenship.
a.
But Mr. Roosevelt said that and in a
speech that he has always been psrticu-
larly proud of. He made It at the Mime
sofa state Idlr SIX years ago" we Hau
hysteria of buliishness last year. and this
has been followed by an equally foolish
hysteria d bearshness The people who
were talking 500 for Great Northern. $50
for Union Pacific. $50 for Southern Pacific.
and 500 for Reading are now talking 500
for Great Northern. 500 for Union Pacific.
$50 for Southern Pacific and 800 for Read
ing In a bull market prices go beyond
values and in a bear market they go below
values No one, except by accident, can
pick the top or bottom. But the wise
specuIator who lays out bear campaign
when prices are away above values or a
bull campaign when they are away below
values Ia the one who makes the big KILL
Ing.
Nav York Natal Markef