Evening star., 1908-01-19
Financial News Letter
BIZ ". G.. NICHOLAS.
Special Correspondence Of The Star.


to arrest for overspeeding. The ad-
vance in the general list was pro-
longed beyond most expe Citations. and
the movement was entirely too rapid
to suit the conservative element. The
rise nevertheless served the very use
full purpose of educating the public
to the idea that the crisis was over
and that ti.nidity might safely give
place to confidence. In that sense the
bull movement was more important than
the mere registration of higher quota
tions on the New York Stock Exchange.
That the advance in some cases has gone
too far under the circumstances seems to
be generally admitted, although in no
Wall street quarter. excepting that domi-
mated by the short-selling professionals.
has there been a marked disposition to
oppose the rise. Its early inception was
dictated in large measure by desire
among the banking and fiduciary institu-
tions to make a good showing for the end
of the year. Public support given to this
laudable enterprise was better than ex-
pected, and the first half of January wit
messed very substantial recovery on
top Of the improvement which dated from
the low panic levels.
1t Is now assumed that there will be no
further need for worriment on account of
money. Lenders. who up to week or
ten days ago. were able to put out their
funds for six months at s per cent are
congratulating themselves. The rate has
materially softened. and those whose
judgment Is rated best anticipate period
Of cheap money by the middle of summer
or earlier. Predictions are heard that by
hn cf luna honke NnN York
alone will have a surplus reserve OF $780,
OOO. 900 to 500. 100000 Any such reserve
would necessarily be at the expense OF
business, but on the other hand 1t may
be accepted as truth that no permanent
recovery In business can be expected un-
til there Is an abundance of loanable cap
ital at the command Of the banks. Alum
dant money and cheap money will be the
first essential to a return of good times.
In its early stages the piling up of idle
capital may mean the reverse OF good
health and good times. and may spell
prostrated industries and the enforced
idleness of hundreds of thousands of
wage earners. with It's companion evil, re-
duced buying power on the part of the
masses, and general construction OF activ-
ity in every department of trade and
manufacturing Gradually. however. SOL
vent borrowers will appear to absorb
available funds, enterprises will be re-
vived and the whole will move again at
normal speed.
-
From Washington comes the glad tidings
that Congress will contribute nothing
for the promotion or prolongation Of busi-
ness unrest. From the very highest
Washington sources the advice is received
that Congress will content itself with
the passage of q monetary relief bill
framed along the lines of the so-called
Aldrich bill, and that it will do little else
besides the passage of the appropriation
approval will call for about $1,000 600, ,O0O
If everything should be appropriated that
was asked for the amount will be 81 1,J00,-
OO0. 900. The watchdogs Of the appropria-
ton committees of the Senate and the
House VIII keep the totals down to the
lowest possible figure, and by common
consent 100000, 900 Is named as the
minimum. On this program OF reason
able repression of extravaganza Speaker
Cannon and his colleagues stand immov-
ably committed. Both branches of Con-
gress will kill as much time as possible
on non-essentiais In the matter Of legisia-
ton and the consideration of bills Of the
most tnnocuous sort. All OF this con-
duces to the best business results and
meets with the entire approval Of Wall
street, term which in this connection
has vastly broader meaning than the
geographical description of the small
area on Manhattan Island south of Full
ton street. If kind Providence should
will reasonable relief from a heart-break-
ing presidential campaign the day of re-
stored confidence and of good times will
unquestionably be FASTENED. 1t Is for
this reason that Wall street is watching
eagerly every development having bear
ing on the national political campaign.
International banking houses report a
growing investment demand from the
other side. A welcome sign Of the times
Is the increasing friendliness Of the
French investors. They have lately been
sending large amounts OF money to the
United States for investment. Their pref
erence is for New York Central and
Pennsylvania issues. Thus far these are
about the only things they know of.
Later on their knowledge OF American
has not been so barren OF American Sc
curities in many years. and the same
is true Of Germany. In both Of these
countries alarm and distrust have been
created by the attitude Of our national
administration toward corporations and
the accumulations of wealth. The mass
Of investors in most foreign countries have
not been able to understand why the
central government should be so per-
sistknt In its attacks upon the founda-
tIOItS u COIpOIdeC PIppSILS. dhu XII lHS
most part they preferred withdrawing
their Investments rather than attempt
to educate themselves in the intricacies
Of American politics. There are indica
hons of better feeling abroad and of a
willingness to replace securities sold out
at a higher range.
Railroads are hailing with satisfaction
the promise Of easy money during the
coming year. Those which have been
putting through grand plans for terminal
and other improvements on their prop
critics and which had been interrupted by
the panic now see a chance to go ahead
and put themselves in shape to earn
money on the newly invested capital.
The most conspicuous among the rail-
road systems which have on hand un-
completed projections are New York Cen
trail. Pennsylvania and the New Haven
lines. These three systems have once
more been brought in touch with money
and can nroceed with their work The