Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-07-19

X
Railroad earnings continue to be one
OF the big black spots in the situation
They are coming in about as bad as at
any time, although nearly 100, 900 Of the
100000 Idle cars on the side tracks a few
weeks ago have gone back into service.
These 100000 cars represent about 5 per
cent Of the total equipment of the rail-
roads Of the country. AS the volume of
the crop movement increases the quota
OF idle cars will undergo still further re-
duction. The trouble is, however that
the general tonnage does not materially
increase-nothing to compare to the re-
ports given out by the apostles of sun
shine, who in many cases permit their
enthusiasm and hopefulness. to outrun the
hard old facts. The Pennsylvania sys
tenn, for instance, is running behind at the
rate of $75,000,000 a year as compared
with 1907, and the New York Central at
the rate Of $4,000 900 a year. Baltimore
and Ohio's net dropped back of last year
over 100000, and four months Of that
period were good times. These are only
of the general railroad situa-
ton.
Bank clearings, which are another un-
failing index of general business condi-
tions, do not support the interviews which
are continually appearing about our rapid
return to prosperity. In further confirma-
ton of the known fact that the situation
may look at the steadily accumula ting
surplus Of idle money in the banks. This
money piles up because people are afraid
to invest 1t. Nothing more definitely and
accurately contradicts the claims that
confidence has been restored, and that the
whole country is moving Joyfully forward
Without doubt the country will in time
get back to former splendid conditions
but it is far from that plane at this
writing. Nobody ever lost money betting
~ ynif tote ho cfo hSyf hn
Investment, but a lot of money has been
lost in getting it on the bulges and on
false starts with too thin margins.
Many people in Wall street. who COM
prise what is known as the experienced
and conservative class, regard the present
bull movement in the stock market as
premature and as unwarranted by known
business conditions. 1t must be said for
this element, however. that on the record
of the tape it has made nothing by stand
ing out against the activity of the market
leaders
The bankers of the Wall street district
give open encouragement to moderate
speculation. They like to keep as much
Of their surplus at work as possible, and
loans on stock exchange collaterals are
favorites. Call money within week has
been down as low us 1fe. Spectators
who have bank standing find 1t difficult
to resist this temptation, and as a matter
Of fact they are not resisting It.. 1t IS
their credit and the money they borrow
at the banks which is largely responsible
for whatever activity there may be and
for the apparent stability Of value. Cheap
as money is in Wall street, 1t Is hard 10
get for purposes of business expansion or
enterprise. 1t is enough to give rise to
doubt as to a mans judgment II he wants
to borrow money for new enterprise ana
enough to justify bankers in turning MIN
down. Hence the money piles up. Inc
banks will let it out cheerfully, but only
In such d way that they can pun IL Dach
again on shortest notice.
Il X
Politics has been very little talked about
this week, although in the back omces
of the big men who were at first very
sure Mr.. Taft would have Walk-oVer
haunting fear is developing that possibly
Mr.. Roosevelts radical teachings may
have converted a million or two republi-
cans into Bryan democrats. This idea mas
been reflected in some OF the correspond
ence which has been published IN the
New York papers from the west ana MID
die west This feeling, which is the In
spiration of large part of democratic
confidence, and which has been more or
less discussed under cover for months
past, is a. discordant novelty in New
York, and especially in Wall street.
x
The withdrawal of $50, 0OO, 600 In govern
ment deposits creates not the slightest
ripple. With the Treasury running behind
every day it is self-evident that the cash
thus withdrawn will speedily find its way
back into circulation through the agency
Of Treasury disbursements. Acting under
highest authority, all departments of the
government are rushing work wherever
1t is possible In order that as many as
can be given employment work can be
found for them. The resumption of gold
exports Ia another incident which is be-
All told nearly $5OOOOO0O in gold has
gone out of the country since the first
of April. The latest squirt in the gold
export line is due to the demands of
Americans abroad. The army of tourists
is not as large this summer as usual, but
1t is spending money just the same.
Il X
Some Of Brandt Walkers friends are
about eighteen months ago from which he
ran a shoe string into more than 3d.
coo. 900, about half of which he subse-
Quently pldyeu Dack INTO the game. III
was at time when the whole world was
long Of stocks and banks were beginning
to curtail accounts in Wall street He
heard of one house that was carrying
10000 shares of Union Pacific beyond its
limit to raise the money, With a lone
5000 he made the proposition to this
house to sell 5000 shares. AS means of
relief the house accepted the offer. which
was equivalent to one-point margin. With