The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1907-01-09
But |ll Money Shortage. keegs Al
On The Edge
MUCH sARInneE N STOCK VALUES
BUT POWERFUL INTERESTS ARE
IN CONTROL AND WILL SUP.
PORT MARkET.

Illus wall street III rdtner more
hopeful mood. In the monetary situa-
ton there is some improvement. and
January disbursements caused a sharp
decline in call loan rates on Thursday.
Time money rules about six per cent.
but the loan item inthe associated
bank returns stands at about the same
level as year ago; this in spite of a
decline in prices and liquidation which
has been going on with little Interrupt
ton since last August. Some softening
in money rates was, of course, to be
expected. owing to January disburse-
ments, which this year were unusually
heavy and amounted to over $18O, OOO,-
600. These funds are gradually find
ing their way back to the banks and
in due season less stringent conditions
should prevail in time money. For the
next three or four months, however,
fairly high interest rates may be ex-
pected.
Values are Shrinking.
Stock exchange values have under
zone very considerable shrinkage
during the last few months, and the
surprise is that no serious trouble has
thus far resulted; such rumors as have
been in circulation not being of a very
important nature. A moderate recov-
cry is now justified, for the coun-
try's activity and prosperity as a
whole continues unchecked. and out.
side of financial circles there is little
or no immediate cause for uneasiness.
1t is somewhat singular, however, that
at a time when the entire country is
on the food tide of activity that Wall
street should be in such an ultra-cOn-
sentative mood. The reasons are plain
and amply justified. AS repeatedly
stated in these advices, we have a
plentiful supply of currency; but it
has been more than exhausted by the
hlgh prices. while our credit situation
has been much over-extended. Re-
trenchment is now in order and this
naturally causes disappointment. Our
bankers have become exceedingly con-
sentative in spirit; speculation in con-
sequence receiving a decided check,
and the public is carrying securities
on margin to a much smaller amount
than is usual. Recently speculative
movements have been entirely in the
hands of exceedingly powerful cliques.
For months past these parties have
been endeavoring to find a market for
securities which they acquired for the
purpose of forcing through certain
deals. as we'll as in the expectation of
realizing extraordinary, profits upon
such transactions. In the latter re-
spect they are likely to meet with
some disappointment. 1t is true that
they control enormous resources and
are quite able to carry their present
loads of securities; they are also
able to stand considerable
shrinkage in values compared with
the high price of last midsummer.
Thus far these interests have only
succeeded in selling limited portion
If their big surplus holdings. The in
dications are that they are endeavor-
ing to gradually diminish such hold
ings by feeding out securities on every
rally: thus Strengthening their finan-
cial standing and placing themselves
in a position to repurchase in event
of sharper declines.
Are Weakest Element.
These two factors-the stringency
in money and the knowledge that the
big interests are disguised sellers
constitute the weakest element in the
stock market situation. January Is
usually a month of good investment
buying. Sometimes this investment de-
mand appears in December. At one
time it looked as If there would be
little demand for securities of any
kind from investors; the latter hav-
ng lost confidence in existing values
and not being inclined to come into
he market with any freedom until
here has either been a substantial re- |
.oSS1On IN VdIucS, VI I0O1CoI Iu-
in the money market;
,ither OF which would tend to restore
he normal relations between interest
'ates and investments.
Differ in Views.
It is a long period since market
opinions varied so widely. Some au-
horities are exceedingly pessimistic,
While others are equally optimistic.
duch depends upon the point of view
nd the commitments of the observer.
)ur great industrial leaders are natur-
lily very hopeful. Those engaged In
he development of great enterprises |
nd that CONSUMPTION is still ahead ~
reduction and that much continued l.
ctivity will be necessary to meet eur
emit demands. This country has risen
0 a point where it is producing 45
or cent of the worlds pig iron and
early so per cent of the worlds cop
or and vet there is shortage In
light for both. Establishments con-
ected with these industries in many