Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-05-10

free supply of Iow-priced call money
and by the fact that in this country and
Europe there is accommodating an immense
aggregate idle surplus. For the time be-
ing the political and business uncertain
ties have not weighed against this one ele-
ment of cheap money.
The motive which has chiefly inspired
this great buying movement by the inter-
ests mentioned has been the need of new
financing to carry out projects under way
and to provide for floating indebtedness in
various forms. BY marking up the price
of stocks a degree of confidence has been
instilled into investors = at home and
abroad and some of the more recent bond
and note issues have been freely subscrib-
ed for. The corporations doing the Dor
rowing have been obliged to pay good
rates for the money thus obtained, plus
fat commissions to the bankers that have
undertaken the iotatiOn. Once again we
are beginning to hear of distribution of
profits to underwriters. Only few days
ago the Morgan house sent checks around
to associate underwriters to the So. O0O
900 Inter thorough loan, amounting in the
aggregate to no less than 100000 This
neat little profit was extracted from the
market without the benefciaries having
to put up dollar. The public took the
loan without batting an eye.
over subscription of the Pennsylvania
$4O.C0O.O0O loan gave heart to the other
big candidates for money. and 1t is as
sumed as one Of the certaint.es that fresh
bond and note issues which are impend-
ing to the extent of not less than $780,
100000 in the immediate future will be alb
sorbed. There will be additional issues OF
securities as long as market can De
found for them. That may come in thirty
days or in sixty or ninety days; none can
n
has been borrowed and arrangements
made for possibly half as much more. not
including the big Hartman grabs. Just
how much money Hartman will be salts
on how the investing public takes to his
proposition. Union Pacific stockholders
authorized him to sell bonds to the
amount Of 800 900 900. although he conf
IDENTIFY informed them that he might not i'm
mediately require more than $25.OOOOOO.
Armed with authority to borrow money
and meeting willingness on the part Of
the public to lend 1t to him. there Is little
doubt but he will play the limit.
Mr.. Hartman seems to be inspired just
now to give employment to idle men and
incidentally patronize the mills and fac
tories engaged in the production Of ma
terials entering into railroad building. and
maintenance. To that extent Is this dis
tinguished malefactor of great wealth be-
coming a public benefactor.
The rise In prices of stocks and the abil-
ity of the bull party to hold them at the
new level of improvement has given a
very hopeful tone to sentiment. although
Wall street is full of pessimists and men
of small faith in the enduring quality of
the advance. This element finds nothing
to be cheerful about in the business stu
alton. They look at the bank clearings,
at the reports of commercial agencies, al
the records of failures. at the unsWeep-
ing reports of curtaiment In the work.
ing forces of most corporations and at
the many other gloomy features, and
openly declare that the surprising bull
movement in the stock market during the
past six weeks must be artificial. They
say the market has a hollow sound. and
is not backed by real substance. Those
OF them who have backed their faith by
short sales confess with humiliation that
they have suffered losses.
The market has continued to eat up
their capital, and they are sore and dis
gruntled lot. They even analyze railroad
earnings as one of the most unfavorable
symptoms of the times, and declare
bluntly that such improvement in net
returns as occasionally show up are due
entirely to the wholesale discharge OF
men and the rigid enforcement of econo-
mics in operation and maintenance. all
Of which co1duces to a further restric
ton in the buying power Of the multi
tudes and the further prolongation, of
depression. Nothing will satisfy them.
Mr. Jacob Schif. the great Hebrew
banker. has returned from his trip to Eu-
rope. where he formed the proudest al
lance of his long career-a combination
with the great house of RothSchild. for
more than fifty years represented by the
Belmonts. MIR. Schif does not talk In
the most cheerful vein, and says that the
situation abroad is similar In many re-
spects to that in America. He also men,
tOnS that Europe is waiting for condi-
tons here to take some definite form
for the better before themselves taking
an attitude toward the future. Among
other things, he refers to the industrial
depression in Germany. This statement Is
out of harmony with reports industriously
circulated by spokesman for the copper
trade. who have been telling everybody
that the enormous shipments of copper
from the United States have been chiefly
to supply German manufacturers. who are
supposedly in the midst Of stupendous
Industrial revival. The incident revives
again the query as TO what has really
been done with the 90, 100000 pounds Of
copper exported from America TO Eu-
rope during the last ten months.
The exact whereabouts of this vast store
Of undigested copper is one of the mys-
teries of the hour 1t represents value
at current QuOtatlOnS or not lar from
75,OOOOOO. Who is carrying 1t and where,
are things which everybody in Wall
street would like to be advised about.
Curiosity on this subject is increasing
every day. Meantime those in market
control of Amalgamated and other kim
dred stocks are Loyalty supporting the
shares. and far as can be ascertained
they are not making any violent effort to
distribute their holdings. Possibly this Is
because they realize that campaign of
distribution could not be successfully
waged.
Wall street is complaining that Congress
is slovenly and improvident of it's treat
ment of the business interests. They
would like to see some financial legisla-
ton before adjournment but have not
as strong hopes in this respect as they
had awhile ago. They are beginning to
worry a little because of the prospect OF
an embarrassing shortage in the Treas
ury funds. The deficit is growing at the
rate of many millions of dollars a month.
By the end of the present fiscal year in
June it will be about $50 100000. When
the autumn and winter need for govern
ment help to move the crops the Treas
ury is likely to be too nearly empty for
Secretary Cortelyou to render important
aid The outlook in this direction is not
good. and as Congress is very likely to