The Washington herald., 1907-08-25
WALL STREET NOTES
Secretary COrtelyOu'S Plan
Generally Approved.
MOST STOCKS SHOW GAINS
Market Opens as If Effort Were to
BE Made TO Drive Shorts 10 Cover.
High Prices Welcomed by Most
Operators-CIOsing, However, Near
Low Mark of the Day.

I New York, Aug. 24-Approval of Secre-
tary Cortelyou's plan of the deposit OF
government money was universal and
hearty in banking circles. to-day.
1t is not so much the mere deposit of
the funds that evoked favorable comment
as the method formulated by the Secre-
tary for making the deposits. Both for
this particular occasion, it was said, and
I'm the course of the operation of a gen
eral policy, 1t was desirable that deposits
be strung out over period Of weeks and
placed IN centers Of great stress.
just now, were the former practice of
dumping a block of many millions on the
money market once followed. a large
part. if not all the money would go to
Europe, since exchange is decidedly in
Europe's favor. That may be avoided un-
der the new regulations.
A more stable and enduring benefit is
deriyable from smaller deposits extend
ing over a considerable period Of time.
The question, Who will get the gold to
be deposited?" remained unanswered. 1t
was realized that the Secretary had taken
all possible precautions against an out
flow TO Europe, but there were differ
ences Of opinion as to Whether or not the
precautions would prove effective. Lon
don was closed and no answer was OBJ
tainable from money movements there.
Here, bankers, though differing on the
main question. believed that the amount
which Europe may secure viii be much
smaller than If $l5.OO0.000 or S9o.OO0,0OO for
instance. were deposited at once.
With the money now on hand, and the
estimated balance of receipts over ex-
penditures in the immediate future. It
was figured that the Secretary could de-
posit S45.O00.OOO In the next six weeks
without disturbing the working balance
in the Treasury. 1t was not predicted
that as much as this would be deposited.
The bank statement showed the un-
eXpectedly favorable features Of a de-
crease Of SS.O1).0G0 in loans and increase
Of $500,000 in the reserve.
For the first time in many weeks the
reserve was greater than in the coTre-
spending week of last year.
The market opened as If an effort were
to be made 70 drive the shorts TO cover
under the developments in money. Most
of the active stocks showed gains. II
there was an effort TO drive the shorts
IL was soon abandoned OF soon failed.
for the majority Of operators welcomed
the high prices as good spots on which
to sell. and liquidation, accompanied by
a drive in various issues, sent prices tum-
bling rapidly.
The weakness Of the Eries and renewed
weakness in the Southern Railway shares
also depressed the entire list to such an
extent that an unusually small number of
shorts deemed 1t advisable to cover in the
late trading. The closing was accord
ingly near the low prices Of the day.
There was nothing encouraging in the
columns Of the Financial Chronicle That
organ of financial opinion summed up the
situation in these words
THE truth IS, we have reached a point
in tho crusade against corporations and
against capital where securities of every
grade and description are regarded with
fear and apprehension The cause. as we
have seen, is not obscure. The remedy is
equally plain. It can come from only one
direction Mr.. Roosevelt alone can stem
the tide.
Thus far, on account Of the enormous
volume Of accumulated orders, general
business has not revealed the evil effects
TO a great extent. But the point has at
length been reached where mercantile ac-
tivity can only be sustained by new bust
ness, and this latter. unfortunately, Is
now lacking Soon there will he fdlaraoc
and want; then there will be discomfort
If the President does not reverse his
course before the cOnfiagratiOn which he
has started passes beyond control, his re-
spOnsibility will be heavy and the conse-
nj