The Paducah evening sun. [volume] (Paducah, Ky.) 1906-1929, 1908-12-23
PUBLIC IS WARY
OF HIGH PRICES
Henry Clcws Thinks the "Street'
should Meet Hughes Commits
sion Half Way.
WEEKLY FINANCIAL LETTER

New York, Dec. II. (Speclal)-
The long threatened investigation OF
Wall street by a commission appoint
ed by the governor is about to become
a fact. Wall street should meet the
committee more than half way, be-
cause the deeper the investigation OF
the affairs of the street the more II
will rebound to the credit OF the
great majority OF banking and broker
age houses. There Is an erroneous
idea in the minds of many well
meaning people that Vol street is
den of iniQuity. and a few OF the fail
ures that have occurred during the
last two years have lent some color
to this impression. A fair investiga-
ton will prove clearly that the sins
OF the few black sheep should cot be
visited on the heads of the innocent
and honorable. who are in the over
whelming majority. II is good
thing that the investigation Is to be
made by an authorized committee ap-
pointed by the governor instead OF
one appointed by the legislature. /
for one will welcome the inquiry. as
know the result of the probing will
uncover good rather tina nevil and
be OF benefit in raising public opinion
concerning Wall street and the New
York Stock exchange.
Governor Hughes was not only
wise in his selection Of men. but also
as to the time chosen for action. BY
bringing up the Investigation before
the opening of the legislature he
takes the question out OF the hands
of political demagogues. who would
doubtless cause much disturbance by
appeals to popular prejudice and ig-
norance For this he should receive
the thanks of all sane and intelligent
men. The investigation will not only
tend toward the stoppage OF certain
abuses which do exist. but will also
tend to what is more important, the
creation of a sound and strong pub
lie opinion that will unrelentingly
frown down such practices and scan
dals as were largely responsible for
the late panic. Our regulations re-
gardng the issue Of securities are too
loose; our corporation laws are too
loose, and some Of our banking meth
DDS are probably too loose. BY all
means let us have reform in these re-
spects. for It will beneat the country
at large and Wall street In partieu-
ar.
IL seems impossible to infuse any
genuine or continuous activity into
the stock market just now. Spas
modic attempts to lift prices TO a
still higher level and spectacular man
ipulation OF low priced specialties
fan TO stimulate public interest. The
old theory that the public will climb
after stocks when they have had a
big advance no longer works. Just
why the public will not come along
in its usual philanthropic fashion and
relieve the big leaders of their super
fluous stocks, Il does not tell: but
there is only one inference. and that
IS the public knows better. In these
days the outside operator Is a much
more wary individual than he used
to be. Experience has proved a cost
ly but thorough teacher. and the in
dividual now depends much less upon
tips and gossip and more upon his
own judgment and the guidance Of
his broker than formerly. He may.
Of course, err at times but this is a
healthy tendency and one that will In
the long run be more profitable than
blindly following the leadership Of
those who simply desire to cast upon
him their surplus burdens.
Wariness of Public.
The warlness OF the puDiic, which
Is really an important element in the
situation. is not the only reason for
present uDsteadiness Security prices
are undoubtedly too high when meas
ured by customary standards. As re-
peatedly stated In these advices,
cheap money has been the most pow
erful single influence in the remark
able recovery of 1908. When call