The Washington herald., 1908-07-05

To find a parallel for the insignificant
total Of last weeks business on the stock
exchange, il would be necessary to 20
back a dozen years. TO 1896. Even the
low record" at which Wall street stared
in 1904 when the depth Of stagnation was
reached with a 73. 3.OO0-share day. in March.
ran above Fridays 63,OOO As was TO be
expected under such circumstances, prices
remained virtually unchanged.
When II is recalled that only six weeks
ago. 'million-share days" succeeded one
another with unvarying regularity. and
that on May 20 total Of 10000 shares
changed hands, a curious light is thrown
on the seasons market one is tempted
to ask. II this is the sort Of market that
happens when all the millionaire manipu-
lators are of for an outing. what is the
part which the general public actually
plays in stock exchange transactions?
1t will doubtless be argued that the
market is waiting for the Denver con-
vention." or that it fears that the corn
crop may be destroyed over the double
holiday. There is always some explana-
ton. other than what would occur 10 q
plain and simple-minded reasoning.
What VIII MiIIionaires Dor
Probably curiosity In obscrvant Wall
street quarters chiefly conveIges on the
question. What will the restless million
aires do when they get back from their
outing? In 1884,. after a period OF sus-
pended animation al this time, a pro
longed decline began: in 1904. after the
similar July pause, vigorous and sustain
ed recovery ensued; in 1900 the Wall
street paralysis OF this midsummer week
continued until the early days of autumn
Here are three valid precedents. from
which the reader is entitled to make his
choice
The bank statement was published only
| after the markets close. It's actual fig
ures showed a loss OF N93OoOoO cash,
which with a $22.0O0.000 loan expansion.
incident TO the July settlements. cut down
surplus reserves $2OO0000O. The loss In
cash was not without explanation. The
trust company report for the week show
ed Sl3,000G00 gain in cash. a result. Of
course, OF the increased reserve require
ment which went into force this week.
OF news there was little to-day. except
the announcement of the insolvency Of
the S29.0Oo,O0O United Boxboard and paper
Company. Of Chicago. This was not an
altogether pleasant occurrence. especial
ly In view Of the reasons for the appoint
ment Of receivers, stated officially by the
! directors.
Low Rates Mean Nothing.
When efforts 10 reduce floating indebt-
edness have proved unavaning." because
OF the tmpracticahnlty Of floating bonds
and presumably also the difficulty OF ex-
| tending notes Il must be evident that the
prevalent low rates for money do not
mean everything that people are prone 20
read into them. Easy money may. In
deed. under certain circumstances be the
precursor OF speculative boom" but
IL may also be merely the reflection Of
conditions which warrant no boom what
ever. The one phase OF the matter needs
20 be as carefully kept in mind as the
other
Perhaps after all It IS fair to say that
the persistent assertion that times are
really good is Indirectly a proof that they
are not as bad as they might have been.
as they were after other panics, or as
most people last October. expected them
10 be. Il is the sober and thoughtful
business mans conviction that underlying
factors were making for resistance 10 de-
preston and for relatively early recupera-
tion, which has made II possible FOR the
extreme optimist school TO get a hearing
1t still remains. however just as it did
in the similar enthusiasm Of last Febru-
airy, to see how far and how soon realities
viii follow IN line with hopes