The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1909-08-09

New York. Aug. S-Buyers OF stocks were
more insistent than sellers last week, just
as they have been every week since the
panic. and the close OF business found
the average Of prices well above that OF
any previous week OF the year and not
Far below the high prices OF 1906. Yet at
the week end the only criticisms that
were at All widely made were those with
which Wall street had become familiar
in previous weeks.
The high prices. hostile critics contend
Ell. were the result OF manipulation by
wealthy Wall street holders engaged In
marking up stocks for the purpose OF un-
loading at enormous profit on the gen.
oral public. and in the course Of this al
legged manipulation the market had moved
far in advance OF any current or pros
pective business Improvement. Neither OF
these objections has foundation in any
authenticated circumstance, yet each
raises a question OF marked interest and
particularly in regard 10 the personal
equation there has been much interested
comment.
Holdings OF securities by wealthy men
IN this city and their associates else
where are undoubtedly large. but It seems
latterly TO have been forgotten that since
opportunities for purchases Of stocks al
bargain prices were made there has been
buying by men Of small or moderate
means that has resulted in a remarkable
Increase In the number OF stockholders
in every important corporation.
Many Small Holders.
The holdings OF wealthy men in the
financial centers are large, but the
amount OF stocks In the hands OF small
holders is more valuable than ever be-
fore. Stocks IN other words, are more
widely distributed this year thsn at any
previous time in Wall street history. and
II has been noted throughout the ad-
vancing movement that the small holders
are quite as tenacious and seemingly as
well content 70 retain their securities a.
have been the men Of greater means and
with longer lines. Neither has been
at all anxious 20 take profits. and
the result has been that by far the
greater part Of the gains in stock prices
have been made on moderate purchases
and with the result that the big inter
eSts' so-called cannot be as heavy hold
ers OF stocks as was the case in the year
before the panic
Commodity prices also are but little be-
low the high level OF October, 1907. and II
a comparison IS 20 be the test Il may also
be noted that after every period OF panic
or business depression stocks have started
from higher level than after the pre-
vious panic and have advanced 10 new
high record figures before the elimination
OF the upward movement. From I. Is Il
might as reasonably be inferred that
stocks are too low now as from COM
parlson with 1906 Il might be inferred they
were too high. But the stock market
characterisucally ignores precedent, ana
the point OF seeming Importance TO hold
ers OF securities is that current prices
are the result Of a movement that has
been orderly. based seemingly on intelll-
gent appreciation OF the trend Of the
country's business and OF q substantial
rat-er than purely speculative character.
Wait for Tariff BIZ.
Most OF the gains in the stock market
last week were made after the enactment
OF the tarin bin. Whatever the opinion
regarding the merits OF this measure.
there was general satisfaction over the
conclusion of the discussion conveying.
as II did, the assurance that for the re-
ma!nder OF the year, az least, the business
Of the country may proceed on fixed lines
and without political interference. The
feature Of the bin which is considered
most Objectionable Ia financial circles Is
that imposing a tax upon the income or
corporations, and il Is not the tax, but
the authorization Of espionage into the
business OF practically all companies Of
any consequence that IS most disliked.
Fears Of any radical Increase in money
rates in the near future seem 20 be based
upon discussion that are for the most
part rather more academic than practi-
cal IN these discussions the defects OF
the currency system are pointed out in
connection with the years gold exports
to Europe and South America. and with
particular reference to, the large amount
OF national bank notes In circulation.
There seems nothing in this discussion TO
justify any alarm over the money situa-
ton this year
The matter OF currency reform has been
placed IN the hands OF the national cur
rency commission, and meanwhile the
emergency currency law acts as insurance
against dangerous monetary stringency.
There Is, however, little prospect OF any
resort 20 tbs emergency currency law In
the current year, for the amount OF cur
rency in circulation is greater than that
outstanding IN August, 1908 by 100000.
and greater by Sl4,000000 than that out
standing In August. 1907. which was a
month OF exceptionally active business.
The national banks have, moreover, not
far from $l00000.000 loose government
bonds which may be used as a basis for
additional circulation. so that though the
currency system as It is operating this
year may be criticised on the ground OF
lnhauon It cannot be regarded as at all
lacking in elasticity. In the banks there
mas been slight hardening IN time
money rates, but the greatest concern
over the money situation which seems
10 De felt among them is over the current
cheapness Of money and the prospect
that funds will not command as high
a return this fall as many had antici-
pated.
Report on Cotton Poor.
On the crops the only disconcerting
news Of the week was contained In the
government report on cotton. The esti-
mated condition and acreage indicated
crop not greater than 1l.50O.OOO bales.
as compared with 100000 last wear.
and II the estimate were 10 be accented
as accurate II provided a matter for seri-
Gus reflection over the country's greatest
maker Of exchange. The action OF the
cotton market. however, indicated a be-
lief In the trade that damage TO the
crop mad been exaggerated by the gov
eminent experts and correspondents. and
decrease In this years crop Is moreover
compensated in part by considerable sup
pnes carried over from last year In
regard oil ha