Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-09-27
Financial News Letter
BY ". G. NICHOLAS.

Special Correspondence OF The Star.
NEW YORK. September &C. 1908.
The stock market seems to be emerging
from its CONFUSION and entering upon
rather more peaceful period. The election
scare has spent its force. in part at least. 1t
made lively time while 1t lasted and there
Is no certainty that we will not see one or
more repetitions of the excitement before
November 1t is difficult to correctly APP
praise the scare and determine how much
or IL was genuine and how much at
tributable to official agencies There is
shrewd suspicion that veteran market
manipulators took advantage of an OPP
portunity to throw scare into the mar
ket and engineer a sharp break in prices
without much real reason therefor, eX-
cept the desire to make money. Now that
the keen edge of the furry is over things
are moving along about as before. There
is bare possibility that the market may
not be taken hold of with the same Old
v1gor by the same old Hartman stand
ard Oil crowd until after election but at
the same time it is pretty clear that the
big market generals have not released
their hold or lost control of the SITUATION.
Undoubtedly there was heavy Distribution
of clique and syndicate holdings at the
highest range of prices established and
there Is no positive proof that the dis
tributers have replaced their lines to any
extent on the break that occurred,
Indications are that they came to the
support OF prices, but to what extent no
body is able to know except those strictly
on the inside. The break was helped along
by extensive sales for short account. The
nimble footed professionals who made this
play on the short side took prohts. as
rule, and as the situation stands today IL
will appear that in spite of the terrific
short
unwieldy or dangerous. On the contrary,
it's partial elimination leaves the market
technically weak. and strong and per-
sistent buying on a large scale would
ment in quotations. 1t will be observed
that the writer is careful not to say I'M
provement in values. The defnltlon is
confined to prices and quotations. AS TO
the question of values 1t would seem that
the advance, which Is still held, amply
discounts about all the good things that
can be said in favor Of better times ana
recovery from acute business depression
That there is some betterment In the gen.
eral merchandising and in some lines or
industry is no doubt true, but the attitude
of bankers and conservative business men
generally is such as to discredlt ultra
optimism. AS matter of fact the own
ers and lenders of money are In state OF
mind approaching a dry panic
Actual money is as hard to get, except
lateral of highest class, as it was during
the period OF extreme fright and uncer-
tainty following the panic. The banks do
not lend their money out beyond the
range of immediate vision. and then only
to the favored few The big market
manipula tors have the first call on avail
able funds They have used this adj
vantage for fragrant market manipulation
and the rigging of prices. Even in that
respect the banks are beginning to show
week or ten days they have adopted
policy of demanding a very much wider
margin of security on loans, and in their
application of this rule they are not play
Ing favorites as much as might be ex
pected. They have seen prices marked up
twenty to fifty points without excuse for
half that much advance, and they are
taking official notice of the fact in the
manner set forth. They are serving no
tice on their favored customers and
friends that prudence dictates curtaii-
ment of speculative enthusiasm on the
bull side.