The Paducah evening sun. [volume] (Paducah, Ky.) 1906-1929, 1909-02-22
MONEY is EASY
ALL OYER WORLD
Henry Clews Explains Bust
ness Conditions.
Inertia Caused by Timidity Of Buyers
Who Are Feeling Their Way Back
To Prosperity.
THE STOCK MARKET SITUATION

New York, Feb. 22.-(special)-
Monday Is easy everywhere. Not only
in New York. bu, in Paris. Frank
fort and Berlin the tendency OF IN
terest rates Is still downwards. This.
OF course. is mainly due to the de-
preston prevailing in commerce and
industry in all parts Of the world. As
a result capital is accommodating and
diligently seeking every form OF safe
and profitable employment. The eject
OF this situation upon the security
markets Is marked In the first place
II causes a good demand for high
grade investments from conservative
investors and institutions. who have
more regard for preservation OF prin-
Iclpal than either dividends or specu-
lative profits. At the same time an
other class OF buyers, viz. the gen.
sral public. continues to abstain from
the market. partly because the dull
ness Of business and dlminution OF
profits lessons their purchasing abil-
ty, aud partly because they recog-
nlze Tat the prices of average stocks
are much too high in view OF exist
ing conditions. The insiders and big
market leaders have successfully re-
sisted any important decline thus far.
owing to the abundance of cheap
money. There are reasons for be-
'ieylng. however. that those whose
policy Il was to support the market
md resist natural tendencies have ac-
cumu'ated all IL not more than, the
stocks they desire. and that In the
absence OF buyers their position is
anything but n satisfactory one. not
withsianding their unquestioned finan
cial strength.
For some months past all the re-
sources and skill of the great leaders
have been concentrated upon the
purpose OF resisting natural tenden-
cies. Considering the great shrink
age in railroad traffic. aud the I'M
questioned dullness in business. prices
ought to have undergone a consider
able reaction. Such has been the
course In all previous panics, and II
is diffcult to appreciate why the re-
suits should be any different now.
There is no doubt the recovery fol-
lowing the rebound after the panic
was too violent. having been unduly
stimulated by the inhationary effect
of cheap money and the powerful CO.
operation OF great financiers. This
resistance to natural reaction was not
confined to the security market; II
Extended equally into all of the great
Industries under the control OF ble
combinations. IL is to be doubted,
therefore. II liquidation has been as
complete as II should have been, In
order to bring business to really
sound basis. Buyers, not only OF
stocks, but of commodities, lack con-
fdence. There is a universal feeling
that as prices are too high. a recess
sion must follow; and all buyers as a
matter of self-interest are preserving
hand-to-mouth policy and obsti.
nately refusing every anticipation OF
future requirements.
The Inertia.
II is this lack OF confidence among
buyers that has much to do with the
present inertia of business. Nearly
all lines OF business today are exceed
ingly quiet, the only signs OF healthy
activity being where, as. for instance
in cotton goods, a thorough readjust
ment has already taken place. Iron
aud steel prices are now being re.
duced to still lower levels. But need.
less to say though this has attracted
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