The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-04-01

The Shrinkage in Values Amounts
ing to Two Billion Should Have
Healthy Effect,
NEW YORK. March sl.-The stock
market during the week was feverish
and unsettled. An Immense amount, in
small lots, Of securities has been abb
sorbcd by small Investment buyers, but
the market at large was conspicuous
ly lacking in big pool buying power.
This is explained by the fact that very
heavy losses have been sustained by
such previous holders; confidence in
pool operation has been badly shaken,
besides the floating supply OF capital
has been practically exhausted by the
Immense offerings of new securities,
and large sums of the latter are still
hanging over the market During jan
uary and February nearly 100000, 900
OF short-term railroad notes were Of
fered. Then over s30O.O0o,0O0 OF new
stocks of various railroads Issued to
stockholders OF record at par have also
had to be financed. These include
about s100,0O0,O00 by st. Paul, over
s90,000,000 by the Northern Pacific,
$25.000,000 by Northwest, s60,0O0,O00 by
Great Northern, s7oo0o,0o0 by New
YORK Central and nearly S3O.000.O0O by
the New York and New Haven. Be-
sides these heavy amounts 1t Is well
known that many blocks of new bonds
held by various syndicates have been
held at first hands fol. months seekinG
q resting place in investors strong
boxes. With such load as this,
roughly estimated ut 81. O0O, 100000, and
the buying powers SO badly crippled.
1T is hardly reasonable to anticipate
any. extravagant upturn in the mar
4ket, although there Is justification for
reasonable advance In prices after
such an immense recession which has
taken place.
Situation Improved.
The situation has been certainly i'm
proved by the recent upheavaI, for
the financial atmosphere has been par
tally clarified, and we are now In no
danger of a severe panic. as threaten
cd a few weeks ago. We can hence
forward safely look for at least par
;tial relief In the money market. Secre-
atary Cortelyou's policy Is now defin-
ftely known to be that OF counteract-
ing to the full limits Of his power
the absorption OF funds by the Treas
ury. This Is encouraging, and his ac-
ton in regard to the government de-
posts and his intentions in regard to
the purchase of is have done much
towards a restoration of confidence
In financial circles. The unnatural re-
latfons between the government and
the money market are matter OF
common knowledge, and so long as
these exist there is no course left
but that of counteracting bad ten
denotes as far as possible. even by
artificial methods which are not en-
tirely free from objection. Another
source OF relief to the money market
should he the recent drastic liduida-
ton. borrowings on an enormous scale
by great spectators will. no doubt,
temporarily cease; While currency
should soon begin to return FROM
the interior. After the middle of April
lii not sooner-we may expect rising
bank averages and n cessation of the
extreme rates for money which have
been experienced during the last six.
months This does not mean that very
low rates are in prospect--on the con-
trary, fairly firm rates must be an
tlcipated for some time to come be-
cause demands will still be large
There is disposition in banking cir
cles to be much moro exacting as to
collateral. and especially in the matter
of lending MD to new schemes. For
some time to come the latter will have
to be postponed. unless OF the most
desirable and substantial character.
We are evidently In for a period of
more moderation, and the country may
consider itself fortunate, indeed that the
crash which has occurred has not been
worse. In all probability, there will be
some slackenng in trade There will be
lessened demand for luXuries. for jewelry.
for automobiles and for high-price6 COM
modities. And there will also be a post
,ponement of new projects which ulti-
mately will diminish the demand for
labor and raw materials until these come
down to a lower level, or until the
country has accumulated a fresh supply
of capital and had time to recover from
tho staggering effect Of the March
collapse. which Will provo memorn-
finance.
Roosevelt Not So Radical.
B a good deal ofseHaggeration8 exists rs
to tho effect Of Mr.. Roosevelt's attitude
towards the railroads. If all the truth
were known, It is likely that he Is not
half so radical as soma Of his enemies
would have us believe. The danger of
Injurious Federal Legislation has unques-s
tionnbly been much exaggerated. That
something will eventually be done to pre-
vent "a repetition Of old abuses must be
accepted as inevitable; but any radical
or seriously injurious national leeisla-
ton against American railroads Is almost
impossible. Notwithstanding tile m!sdceds
of some .of their managers, the! Ameri-
can railroads are In too sound n posi-
ton and iof too great benefit and import
:nnce to the country at large 70 permit
tho. passngn of any dang erous legislation
President Roosevelt ithcr SIX $ nor
would he support any. movement IS
that character. Tho chief dan ger lies
In radical action by some Of the
States. hut this can be, and probably
will sbe, rounteractedR by Intelligent
discussion and the taking, of8the rail-
roads into more confident relations
with the public. The Inter policy has
already been Wisely undertaken, md
an future the market will probably
have less to fear on this score than
from the reactionnry effects Of
economic causes. These have already
.been%at the bottom of tho recent des-s
cline, III spite of the attempts to place
tho Responsibilities upon ssNnrious I. inli-a
,Viaual 81 who can do nothing more thnn
5asEraYate or Tscipitate the reaction