The Washington herald., 1907-10-27
STREET FINDS RELIEF
Suspension Of Business Re-
lieVes the Tension.
GREAT CHANGE IN SENTIMENT
Nervousness Has Not Entirely Dis
appeaFed-BrokerS' UnwilIinEness
10 Buy stocks Due to Inability to
Get Funds-CIeRring-h plan tO
Issue Loan Certificates Approved.

New York. Oct 26-wau street heaved
a sigh Of relief when both hands of the
clock reached the top OF the dial to-day,
marking the close OF one of the most
anxious weeks In the history of the
exchange
The two hours session with which the
week wound up had been uneventful,
and. while IT marked q distinct change
in sentiment, il would be altogether too
much 10 say that nervousness has en-
tirely disappeared. SO long as brokers
remain uncertain as to their ability to
get money. so long must the situation
remain unsatisfactory.
At present they md it almost impossi-
bic to get funds. and some Of them are
apprehensive Of a continuance Of this
kind Of difficulty. although the consen-
sus is that relief through the clearing
house viii completely change the situa-
ton IN this respect
Why Brokers Refused Business.
Much has been said about the un-
willingness of brokers TO buy stocks eX-
cept for cash. The reason for this course
is clear. Brokers have found il prac-
tically impossible 10 obtain the money
% enable them to increase the size of
their margined accounts.
It was not fear OF further break in
prices that induced them TO refuse bust
ness. but the imp0sSibility Of financing
purchases. They realized that their rents
and other expenses must be met but they
recognize the even greater necessity of
keeping their lines of stocks down TO
what they could carry in such a market
as they were confronted with last week.
and so commissions are refused, even by
brokers who know very well that at cur
rent prices most good stocks were bar
gains.
But the necessity of keeping a check
upon new business was by no means the
greatest Of their troubles. A far more
strenuous one was the difficulty of OBJ
tanning money to carry the stocks which
they already had on hand. Even a most
conservative house seldom has all its re-
qulrements supplied and for this reason
is more or less a victim i'm the money
market.
There were last week houses which
could make a splendid showing of assets,
and yet could hardly obtain the money
absolutely necessary to keep these of
the market. Customers were called upon
10 take up their stocks, but IN many
cases were unable 10 do so for the same
reasons that brokers We're obliged % ask
them to do it, Unable TO get cash, the
latter were left TO worry along as best
they could. hoping that relief might come
i'm the near future. This hope was not in
vain.
What Withdrawals Mean.
The withdrawal by country banks and
trust companies of their balances from
banking institutions here means nothing
more than that those institutions are
making preparations TO meet any -Ontin-
Kencies that may arise. and in case the
precautionary measures are found to have
been unnecessary, the funds withdrawn
may speedily find their way back to New
York. There is no way in which the
banks here could prevent these withdraw
ais, however much they might want to
DO so.
Just a few minutes before the market
closed the announcement was made that
the clearing house had decided to issue
loan certificates, and the plan met with
general approval Some particularly
nervous brokers expressed doubts as 10
whether the effect on the country at
large would be salutary, but they were
hopelessly in the minority. and the ma
jority had, IN favor Of the cheerful con-
tentions the fact that the last time the
clearing house made an issue Of certii-
Gates the effect was decidedly beneficial.
At that time a condition such as that
of the past few days, which made It prac-
ticaliy impossible for brokers 10 raise
money. could not have existed for re-
course to the clearing house would have
removed the difficulty.