The Washington herald., 1907-10-30


change yesterday was Of the same char
acter Of past days. The stocks traded
in were IN small lots, and with the same
or fracdonally lower prices Bonds
were entirely neglected. and the trans
actions were limited 10 $50 shares Of
| stock, Of which 100 We're Mitchell Min-
ing, which sold al H.
This analysis of the trades Of the day
| shows that business was not large or
significant The liquidation in Wash
ingtoH Railway and Electric preferred
and in MergenthaleI' continued, and sew
eral small lots of other stocks were
sold. The railway shares lost half a
point from the sales Of the preceding
/ day. and Mergenthaler sold from lgs
down 70 1855, the last sale Of the day
showing a reaction from the low price
Washington Banks stable.
In considering the present money suln-
gency prevailing In the city Of New York,
it should be remembered that. in reality,
this situation does not materially affect
The country at large. because of the
sound condition Of banks everywhere out
side Of New York. and also because Of
the unparalleled prosperity Of the c0un-
try in agriculture, manufacturing. and
commerce.
In recent report it has been shown
that banks throughout the country have
available cash largely 81 excess Of the
reserve they are required 10 carry by
law While IL IS true that high interest
rates nave generally prevailed OF late.
this condition Of affairs is actually bene-
fetal Whenever the rates are higher
than normal, they act as a check upon
unhealthy and eXtravagant expansion Of
business interests, which might otherwise
accompany prosperity such as we are ueq
enjoying.
a canvass among the bankers OF this
city shows that there IS not the slightest
reason Tor any uneasiness on the part of
any one, as they show not only strength
In their financial condition. but also the
enjoyment OF a steady increase Of patron
age.
Think Situation Good.
Taking into account the conditions Of
the speculative market here and in New
York, most brokers regard the situa-
ton as particularly good. A member Of
the exchange said yesterday that the
courage Of Washington holders Of stock
IN keeping them. and parting with only
enough 70 meet pressing calls for money.
was. 10 his mind, "a most encouraging
sign. To him il showed that none Of
the persons in Washington who invest
some u their earnings in stocks have
become nervous over the situation. but
are calmly holding on and waiting for
the air 90 clear and prices to seek their
natural equilibrium
Brokers and other Hra1Cfers in Washing
covery OF prices wou probably De slow
with several haI';ngs and setbacks 10 the
market They thought it would be too
good 10 be true for the sky % clear sud
denly and plunge Wall street into the
excitement of a genuine bun market It
is predicted here that there Will be only
slow rise in stocks. which viii be taken
advantage Of by the bears to work their
little game, and skim profits on the way
up.
Praise for Big Financiers.
There is wide appreciation in Washing
ton Of the manner IN which the big opera
tors. bankers. and others OF large f7an-
cial resources and influence have lent as
sistance 90 the market. The opinion is
expressed here that these men have prob
ably saved Wall street from a real panic
The facts as Interpreted here seem to
show that the leaders Of New York have
the remedy for disturbances ready 1t
hand when they see fit TO use fl. and that
utter decentralization is as needless as
harmful. 10 all interests involved Some
ton are closely watching the New York
market, and most OF them are expecting
20 see indications Of the turn al any time
Those talked with yesterday said the re-
curious persons would be inclined 70 ask
why these same interests did not step
into the breach sooner and save the last
slump entirely. The answer would be
that at times they probably have stepped
ia and have saved the situation repeat
edly, quietly and effectuaIly. without any
noise being made over il. But the re-
cent troubles. which could not be rOre-
seen. created q sudden emergency. which
called forth concerted action from several
sources. including ne action Of the Sec
retary Of the Treasury, the forming Of a
large pool to serve the borrowers Of
money, and the clearinghouse certif-
Gates. This made the situation immedf-
ately spectacular. and the facts got into
the newspapers. while it is almost GER
tain that the stock market has been
similarly protected from bear raids ever
since last March.