New-York tribune., 1908-09-28
FINANCE AND
TIE MARKETS
FLUCTUATIONS IN STOChO
And ELECTION SCARE.
Business SIo0cly Improving - EH'
tremc Ease IN Money
Continues.
Continues.

roo,..nr,, o,,5 stranqt, ON Wednesday and Thurs
day and irregularity and weakening 'ehue- ~,
on Friday and Saturday. the manner VI N
market from Wednesday was what was 10
ho1-a baar locked for as the sequel to the severe
decline of Tuesday, an occurrence Whlch Iouiiu
lis best explanation in the theory OF an 80.
ton scare" the first of the season. put SCI
enough to impel important operators anu u mo - %,
interests to tighten their burdens by tnlo"lls
over great quantities of securities "hateNel
+ba basis of the scare-perhaps the emptteteu
tone Of the charges and counter charges aiisil.e
from the Hearst disclosures, perhaps uiSqule
ing reports which did not find thelr way Lito
print-its acute stage. reflected in STOCK mar
i,a, onera+ions was passed almost Immediately,
for buying on a heavy scale was resumed the
next day The market, Whlcn III lhe ediiiIi
stages of the campaign had been steaolly ad-
vanced by the powerful interests dominating It
for the public participation is so small as TO be
negligible as a factor-had apparently ignored
political considerations and contingencies but II
has at length shown itself sensitive 10 lhose
considerations. as has been the case IN all pre-
ceding Presidential years. The election OF MT
Taft is confidently looked for, but wall street
with the campaign on in full yigor and with
Election Day little more than month distant
now feels that in overconfdence is danger, ana IS
beginning to shape its operations in ACCORDANCE
with that beIated opinion. Within two or three
weeks it should be possible to form toleraoly
trustworthy idea of the outcome of the political
struggle, but in the intervening time lrregularlty
within a comparatively narrow price range
might normally be expected and if the tone OF the
market at the close Of last week can be accepted
as an indication, is likely to be witnessed
On all sides are indications of the recovery or
business but they indications of slow re-
covery. The mercantile agencies summarizing
the reports Of their trained observers all over
the country reach the conclusion that business
conditions are mending. but say that the great
bulk of the orders received by merchants ana
manufacturers are for immediate delivery. rep
resentng emergency purchasing and not the
placing of orders based upon the expectation OF
greatly enlarged buying power among consun-
ers in the near future. They also report the
placing of extensive orders the execution or
which is conditioned upon the success OF the
Republican national ticket in November. state
ment which every business man can supplement
with instances from his personal information.
These facts 90 to show the vital bearing Of the
election on business and explain the absorbed
interest which Wall Street is now taking IN the
progress OF the campaign, for no sound and last
ing advance can occur in stocks Whlch mas not
as its starting point unfailing indications OF bet
terment in business conditions The dulness OF
business is attributed in some degree also to un-
certainty regarding tariff charges, but on tnls
point the question is reduced to that or the
success of Taft or Bryan, for both parties are
pledged to tariff revision. and business interests
will be much less apprehensive and much more
inclined to enlarge the scope of their operations
with the removal OF the menace of Bryan elec-
ton which would agitation OF tarlH
changes for several years 10 come and. in the
remote event of realization of Mr. Bryan's hopes
Of Democratic Senate and House two years
hence, a revision Of the tariff, which would work
great harm to the country's industries
The fortnight ended on September 10 saw an
other large decrease in the number Of IDLE
freight cars in the United States and Canada,
10000 more cars being in commission than at the
beginning of the month. A large part or TINS
betterment however. is due to the demand Tor
cars for moving the grain crop in the West ana
Northwest and does not represent an extensive
revival OF general business. Spring wheat as
eel as winter wheat is now harvested, and the
major part of the vast corn crop is no longer IN
danger from frost. For these crops, which are
abundant although not record breaking, the
farmers are receiving good prices and the great
addition to the country's wealth represented by
the success of the harvests, in year when
scanty harvests would have been disastrous Will
be of enormous Importance as an influence IN the
business uplift which will follow the determlna-
ton Of the political uncertainty by the election
Of Taft and Sherman. On the other side. how
e~e-, account must be taken Of the very serious
destruction of wealth through the widespread
d--outh o. the last month or two, the most Sc
: ou. f. years and the devastating forest fires,
ir various parts of the country, which have de-
stroved property valued in the aggregate at
many millions of dollars.
Money market conditions continue extremely
easy. with call money in abundant supply at
AN~--NA@'
for which no more than 31a or 3& per cent is
asked for six months loans With these rates
prevailing. and with the Clearing House banks
of this city holding at the end of September So.-
100000 reserve in excess of legal requirements
there is no prospect possibility of money
stringency this fall, such as customarily occurs
at this season. The plethora of money in banks
all over the country, too. is so great, owing to
the depression Of business and the impossibility
OF finding borrowers. that the interior is this
%.Tr ,Jra, inc funds
crop moving purposes in much less volume than
usual finding itself able to large degree 10
finance its needs for that purpose. The end OF
commercial and industrial depression always
finds the banks filled with idle money, a store
upon which the vast drafts can be made which
are necessary when business once more begins to
revive, improvement projects are resumed ana
the cautious hand-to-mouth buying OF mer-
Chandise characteristic of dull times gives place
ordering in larger quantity for future dellV-
cry. The change will not come on the day after
the election of the Republican candidates, for the
business of the United States is a vast and in
tricate mechanism, the quickening of the move
ment of the unnumbered interrelated parts of
which cannot be hastily accomplished; but the
restoration of confidence will be effected through
the election. and under its actuating force the
great business machine Will make steady and
ever increasing progress in outturn and in
efficiency.
The action of the Stock Exchange governing
committee in ordering the expulsion of the board
members Of the failed firm of A. Q. Brown & co.
last week was generally commended in the f1nan-
cial districts, for the facts brought ont respecting
the operations OF that house in the remarkable
market of August 80 would seem To have war
ranued no lighter penalty. But Wall Street and
the investing public had expected also some
statement from the governing committee regard
ing the conclusions reached by it's special COM
mttce the subject Of checking If not entirely
ending the practice OF making wash sa les and
giving matched orders" and distinct disap-