The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-05-23
THE RISE IN THE STOCK MARKEr

THE RISE IN THE STOCK MARKET.
Last October, when there was a
shortage of $4,000 freight cars when
the steel mills were filed with orders,
and the cotton mills saw no end TO
their business, the stock market In
New York made the most sensational
drop since the panic of 1873. and this
on top of terrific panics in August ana
March preceding. Now, with 100000
freight cars idle, the steel production
at the lowest for number of years.
with hundreds of thousands of men
out of employment with closed cotton
mills and empty mines. the stock mar
ket makes sensational leap upward.
Just as the savage saw the wrath
Of some mighty and mysterious god in
the earthquake or the lightning flash.
so the many no less scientific editors
to-day are proclaiming that both of
these stock market movements are
the direct outcome of the sinister de-
sign of financial pirates to ruin the
country. It is interesting, however.
for those who prefer natural ex-
PLANTATION to note the fact that last
October money was exceedingly hard
to borrow. This was caused partially
by the annually recurrent demand for
money to move the crops, by the with
drawal of money deposits by tinlid
owners. and by the bankers boarding
much of what was left. AS a result
money was scare, and loaned out in
the week ending October Goth as high
as 125 per cent per annum. The great
bulk of it was loaned on an average Of
so per cent that week, and those with
gilt-edge collateral who desired to
borrow money for three. six or twelve
months found 1t in many cases i'm
possible to do SO upon any terms. In
November, though the worst of the
panic was over, borrowers for legiti-
cial paper could not get accommo-
dation for less than IL per cent. for
r'1ety-day loans, and many paid as
high as 16 per cent.
This being so. there was rush to
sell stocks by the banks in order
that they might fill up their resources
and by lenders who held stock as col
lateral. In such times, when every
one is rushing to SELL no one wishes
to buy. and even those who saw that
such a state of affairs was abnormal
were unable to borrow money with
which to make the purchases, or to
draw money from their banks even If
they did not need to borrow. Again.
New York brokers. who are a long
headed lot, saw that cessation of
business was coming, and knew with
the cessation of business there would
be "a fall in prices all along the line.
1t would seem, therefore, that. apart
from any sinister design, sufficient nat
ural causes We're operative in the fall
of 1907 to have brought about a panic
in Wall Street, which, as The Times
Dispatch salq then. .'was an inevitable
throughout the whole country.
Now. however, exactly the reverse
is true. Money is lending freely in
New York on the Stock Exchange at
/ Ia to ga per cent. while it can
be borrowed for sixty days at 1-2 or
2 IA per cent, and for six months
at from 3 IL to 3 Sd per cent This
Is because business has become dun,
and there is such plethora of money
IN New York that the bankers are
glad to lend 1t at any price. AS a
result, those who are able 10 do so arc
borrowing large quantities of money
and buying in stocks. being well as
spred that the country is not going
to the dogs. and that sooner or later
the tide must turn, and better days for
railroads and for business must come.
IL may Very we'll be that the sanguine
hopes of the spectators have over
estimated the speediness with which
tgthe country will resume its fun ca
s5pacity of production. It is not Only
.sposs!pie' nut mighty probable that
.sskilful stock Spectators are helping
1.-The advance in the market. But, ius,
ssas the most sanguine speculator in
sssA 4ttli would have been unable "a
sssssten the decline last October when
Sssall the country was seized with q
:smasaia to sell its securities ana hoard
SITS money, the worst shpload 81
financial pirates that ever robbed an
insurance company or broke a bank
VIII not be able 10 keep down the
5yaspes Of securities when the peoplt
.sat large return "a thelr sight jtnls,
:ment and see tile wealth ana Strength
#of this country IN its true relation
This much. however. is true, mar II,
we have a proper banning system, an,
were we free from the clutch al IN,
national bank law stocks would no
fsshaYe fallen as rapidly as they did las
October, and, therefore, would no
have the same latitude for tho recov
jsery they are making This year.
+ RAISING THE MILK STANDARD
Il II is difficult TO overpraiso the wor,
fI.1I D. "