The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1907-08-24

NEW YORK, Aug, eS--We have had
another week Of general and Drastic II
quotation, Since the opening of the
year there has been shrinkage in val
ues estimated at approximately $1,000
100000. That such tremendous shrin'
kage in a little over seven months could
take place on the New York Stock Ex'
change without bringing on panic and
universal disaster is almost beyond be-
lief. and had any prophet the foresight
or the courage TO have predicted such re-
suits last December. he would have been
treated as a subject iit for the asylum.
Nevertheless, the fact remains true, that
Wall Street has endured a shrinkage in
values far exceeding that OF any panic
on record, and this without any serious
failures thus far. The fact that these
losses have been endured without dis.
aster is remarkable testimony OF
strength in the financial situation. Los
ses have fallen upon those best able to
bear them, and the causes are now be.
ginning to be clearly understood. Gen
eral excesses, such rs the over extension
OF credit. over.issue OF securities and over.
confidence have been the main and the
natural reasons for recent reaction. OF
course with the market In hyper-sensi.
tive condition, investors and spectators
alike are naturally more or less frighten-
ed at the anti.eorporation crusade, There
have been some rather indiscreet official
utterances concerning the Governments
policy in prosecuting corporations; and
the anti.railroad feeling displayed in
many Of the States is naturally disturb.
ing at this time. Nothing, however,
that the Administration could have said
or done at this time could have checked
the recent downward movement. Ii
quidation from natural causes was in
evitable. 1t has been predicted in these
advices for months past as the only
means of righting the money and secu-
rity markets. Whether the cure is com.
plete or not remains to be seen. II Is
doubtful II liquidation has yet run its
full course, and if not, still lower pri.
ces must be anticipated; although we
may have a fair temporary recovery.
The remedy for corporation law break.
ers is punishment by imprisonment of
the guilty individuals connected there
with. II the Government and State Of
ficials will announce this as their future
policy, confidence will at once return to
the stock market and securities be in de.
uiand for investment. Corporations
whose officials are found guilty should
also be taxed for all legal fees and court
expenses. Big money fines fall mostly
upon innocent stockholders who have had
nothing whatever to do with the wrong
acts, hence big fines as vrhante-aio A
acts, hence big fines as a penalty depre-
'iate values as they threaten confisca-
ion, while imprisonment in place there.
If will advance them, as it puts them on |
/ more reliable and honest basis. tsR7I
Rates for time money are still very |
nigh, and further contraction in specu-
atiye loans seems imminent. Very
soon the demands of the interior for
'rop-moving purposes will assert them
selves. The crop movement this year Ia
ate, but these demands must be faced
Iust the same. The advance in the
Bank Of England rate to 4 ll2 per cent
Is q symptom Of conditions on the other
'ide; and warning that we cannot ex.
pect the help In that quarter that we
bave obtained the last two or three
years. Sringency in money 10 world.
wide for the same reasons that exist
here; and liquidation has been more
drastic in the United States because
speculation and OVERRIDING have been
carried to greater excess in this country
than elsewhere. 1t can scarcely be i'm
lgined that the blow which has fallen up
On Wall street will ultimately affect
general business. With the heavy los
ses which have fallen upon wealthy
men and large corporations, there must
follow sharp contraction In new enter.
prises; and improvements at one time
thought necessary will be indefinitely
postponed. This inevitably means a
essened demand for materials and la
Dor. Prices are already yielding on
some manufactured products, owing to
he falling off in demand; and it remains
o be seen what will be the attitude Of
abor if business reaction really sets in
There are no immediate indications,
lowever, Of any general recession. Trade
a Htill active in tha interior and the fart