Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-11-24
Financial News Letter
Ipecial Dispatch to The star.

Financial News Letter
Special Dispatch to The Star.
NEW YORK. November 23.-There now
being universal recognition of the cold
hard fact that the country Is suffering
from depression and panic people are de-
voting more time than heretofore to try
ing to locate the cause Of the disturbance
in other words, to finding out what hit us
and why. Opinion on that point seems to
be crystallizing. Those who only short
while ago were divided sharply on two
sides upon this issue, one party holding
the President alone was responsible and
the other that crookedness in high finance
was alone to blame, are getting nearer to.
gether. There seems to be y growing
willingness to concede that both political
agitation and financial immoralities might
rightfully divide the responsibility, and in
the final analysis there might be sim
other contributory elements. They are
beginning to realize more clearly that
back Of both of these factors IL to be
found the larger and more important
cause-that Of overspeculatiOn in prac-
tically every line of business and activity
The truth Is that the country Is suffering
from acute indigestion occasiOned largely
boundiess national prosperity. The people
OF this country in their fever to develop
our great resources have been trying to
do the work Of generation in the short
ahead regardless. and one day they awoke
TO ind that they had gone toe far and
TOO fast and had overpledged them
selves They had bitten OF more than
pains and gripings which now aiTiict Us
are the consequence. The period of agony
ana the poignancy of the grief have been
nastened and emphasized by undue politi-
cal agitation directed against capital and
Dy exposures of rottenness in financial in
stituttons. Exposures Of BETRAYAL of trus-
teeship administration and the exploit a ton
or corporations for stock market purposes
pave accumulated the malady. All these
things taken in combination NAV, be sum.
med up as the main causes of the dis
tress now being experienced in the bust
ness world.
4 Il
The foregoing remarks seem to be neces-
sary to better understanding Of current
events and developments in the security
markets and the Industrial and mercantile
quarters: Everybody is cropping and seek
ing light They are doing their level best
to diagnose the causes of tbs trouble that
they may be better able to find remedy
and alienation. This desire for knowledee
Is all prevailing. There Is even good
reason to believe that Washington Is feel
ing need for Illumination. The powers
at the seat of government seem to be sur
prlsed and grieved that their efforts to
restore confidence and healthy readh,st-
ment OF troubled conditions are not fol-
lowed simultaneously by joyful return Of
good feeling everywhere and complete re-
turn of entire good faith
There are those in the financial district
SO unklnd as to remark that III stocks
have been cut in two because Of a mere
threat that the politicians are going to
take charge Of business, what can be en-
pected now that our strenuous President
has taken 1t into his head to personsIIy
slosh around in an attempt to run the
treasury OF the United States?" And
then again there is found an excuse for
further alarm and. disquiet over what the
PRESIDENT Is going to say In his forth
coming message to Congress due next
week. There Is all sorts Of talk about the
PRESIDENT modifying his views and soft
ening his recommendations, but SO far as
can be learned he has not materialIv
changed his opinion, and will urge upon
congress the need for governmental con-
This being construed among friendly quar-
ters as demand for virtual life and
death authority over corporation affairs
without ownership acknowledgements
sne ~ turning MI over Of the management Of
$!;S,OOO.oO0O0 Of property to the poH-
ticians. surely not a prospect to attract
Investors. 49,
The Presidents Willingness "a ,ao,,.,
the entire tariff question in order tn heIn
out the newspapers which are demanding
free wood pulp is also regarded AZ Z
threatening incident. \ Wall street hears.
however, that Congress will not take seri
ously the White House recommendation on
.nis point Knowing that 1t cannot well
ri ~
without live danger Of plunginr into the
entire subject of tariff revision, Something
which Congress leaders are dead SET
against
= Il
= Fhere is ample justification for crfti-
cfsm Of the selfish attitude of banks IN
this emergency. The Treasury's action
In issuing $50 .OO000 Of new government
Indebtedness breaks down the last ex-
cuse Of national banks for not taking out
new circulation. They have heretofore
urged the impossibility Of getting hold of
government obligations to base circulation
II Is now In their power to add at least
$15O,OOO.O00 Of new currency to the sun
ply and to do It within thirty DAYS. Thev
are openly against any such proposition
and the one secret Of their attack upon
the latest Treasury move for relief is I'M
wiinngness to take the steps suggested
IN money. Everything being equal, their
tendency in preference Is to keep down
stocks OF money instead Of increasing the
supply. The harder it is for peopIe to
get money the higher the price they can
exact.
= 4
The conspicuous feature Of the stock
market continues to be the pressure of
stocks being sold to satisfy loans and to
provide money for myriads of people who
can put themselves in funds In no other
way: Banks are especially relentless IN
sacrfncing collateral behind loans Stocks
and bonds, although selling now at sac
rfnced prices are about the only kind of
property for which there is any cash mar
ket, and this sort of stuff has to go over
board. The operation is cruelty to count
less thousands, but the merciless exieen-
cies OF compulsory liquidation and compul-
sorry paying or of indebtedness leave no
other course open for the entrapped
debtors.
The investing class is discriminating Ia
favor of railroads. The talk of commits
sion houses and bankers shows a marked
leaning In that direction. The industrials
are for the time being under the hammer
OF disfavor. although they have In many
cases declined In price as much, If not
more, than the rails Tho nrooop+ et+;t,do