The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1907-02-15

| The above figures show an unusual
depreciation in the value of stock eX-
| change securities. This demonstrates
that the curative process for the eXces'
| siye mutations of values and credit is
making considerable progress. How
much further it will go is entirely Il
matter of conjecture. The sharp
breaks of the last two weeks have
caused heavy losses to be incurred. but
these have generally fallen on those
best able to bear them. and not upon
TIE class of small Spectators. A good
! ranv speculative accounts Hive been
| closed by the losses ACQUIRING since
January l, and the situation has been
corresponsingly improved the declines
thus far having met with no visible
| resistance from controlling interests.
! Money Market Improved.
/ In the money market there has been
some Improvement in local conditions
| 1t is true that bank reserves have not
yet been replenished to the desired
point but high interest rates are work
! ing out their natural cure and the
strain upon the money market is of
much less ominous character than
few weeks ago. The announcement
of about $17O.OO0.O0O of short term
| notes since the first of January is not
altogether a welcome development, and
| all things considered, the money mar
ket has stood its additional strain eX-
| ccptiOnally we'll. These short term is
sues. of course. demonstrate the impec-
ative needs Of the issuing corporations
| for money. Fortunately. these borrow
! eTs are all strong concerns. and the
| notes will be considered excellent Sc
| curity and if placed i'll this vicinity.
| will find Il fair market abroad. This
means. however that the stronger con-
Germs will secure al the funds which
| hey need while those of lesser strength
and Importance will have to wait for
| more favorable conditions. Corpora
tons that are already doing a large
and profitable business can easily af-
ford to pay the extra premium for
temporary accommodation, depending
upon easier conditions later on for is
sues to take up these new obligations.
Interest Rates Restrain.
Al the same time. interest rates and
the difficulties of obtaining money are
sure to exercise a strong restraining
influence upon new enterprises. New
ventures and new improvements will
certainly be delayed as much as possi-
BILE. This means q lessened demand
for materials and labor until lower
| rates for either warrant a revival of
the enterprise 1t would seem. however
that We are suffering more from unbal-
| anced activity than from too much
prosperity. Some industries have been
much more rapidly developed htan
others. Imitation has been excessive
| in certain departments OF our business
| machinery. and the great bulk of the
profits of industry has gone to organ
| Jed capital and to organized labor.
! Production and distribution have not
proceeded in we'll ordered fashion in all
., dep 3rtments of our national life, and
congestion has consequently followed
| What We need is REIMBURSEMENT. and a
tO0lng GOWN OF excessive actiN1t1eS
(which have resulted in lifting values to
unreasonable and unstable levels. This
process of SOLDERING or REIMBURSEMENT
| WHICH We are now passing through has
has been accomplished by the most
natural of all forces atightening of
the purse strings. We call this liqui-
dalton: and it is doubtful if it has
yet run its course. In spite of the
/ recent rally lower prices are still eX
pected for stocks. and ere long We may
| witness some diminished activity in
certain departments of industry and
possibly a diminution of purchasing
abilitieS-not merely owing to higher
prices. but also to the SOLDERING effect
of reactionary tendencies.
i investigations Had Little Effect.
# a great deal is made of the admin
istrations attitude towards the rail-
roads and all large corporations AS
a matter of fact. Mr.. Roosevelt's ag-
gressive policy in these matters has