The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-02-07


+ all of the enterprises managed by the
firm at the time Of the failure were turn
ing out successfully, with but one excep-
1 ton. The difficulty with this one was
/ overoptimlsm on the part Of the house
as TO the length Of time that the securi-
/ ties OF the enterprise would have 10 be
/ carried before they became marketable.
/ Under such circumstances Wall street
was naturally more or less agitated lest
/ the disaster might be the forerunner Of
Others, and on this point il is well 70
give prominence 70 the declaration Of the
/ leading banking houses that 10 the best
/ Of their knowledge no further difficulties
Of the sort are in any way imminent.
/ There Is. IN other words, nothing over
! hanging the market that should lead in
any way 20 a financial crisis or to any
thing even moderately resembling this
/ This is not saying that certain plain facts
about the bond market do not have 10 be
/ faced. Partially because the bond mar
ket was pretty well filed up by the large
railway and industrial issues last year,
partially because the high cost Of living
I has forced a transfer of attention on the
part OF investors from 1 per cent securi-
ties 10 those yielding or o per cent. and
partially because for some months re-
Gently the rate for money in the open
market was above that returned on high
grade stocks and bonds. the demand for
issues OF this general description has
fallen of
Time TO Mend Conditions.
II is perfectly obvious that the Hquida-
ton that has occurred, the collapse Of
| speculation in pooled stocks. and the
| wide dissipation Of whatever speculative
froth was raised as a result Of last year
boom. represents the application of rem
edles that will in due course entirely
mend matters From the point Of view
Of a comparison Of money rates. an IN
vitine prospect for investment is already
open. Call money at 2la per cent money
for six months use at 4 per cent and
for through the year at IA 10 4i7 per
cent. rather suggests the advisab.lity Of
/ the operation or borrowing money at
/ these rates and investing IT In stocks
and bonds Of thoroughly good sort yield
ing a higher return.
A matter % be determined. Of course.
is the probable length Of time that this
comparison VIII hold. A few weeks ago
our bankers were pretty nearly all of
the opinion that, although money might
he fairly easy through the month u Feb
ruary. considerably higher rates would
r-e,-sl IN "a. .-rfr, and through The
,.es- ss % whole Vow, that the business
o,rtIooly &C. o. LITTLE less ~oseara and with
the rra,. Of a good MANY unsettled fac
ror. d, evidence banking sentiment seems
inclined n r.t off the time when the
b,sfrese of none. lending Will once more
become bfgrl,, rar,r-ara..,a
IN the Other hand although q sharp
esr, hos ,sL,s,, rrs.,.. I'm the market yaI1a-
rio1 Of securities o~ many II them the
ouotsd nrfre NJ q large number IF stocks
and bonds still stands so high above that
touched in recent wears as On make the
fall seem NOT SO very great after all The
PRESUMPTION is certainly strong that cur
rsrr railway and industrial dividends
will not he lowered i'm the present year,
even If inst II the present moment the
business outlook is not quite so bright
as II was some time ago.
Not Spite Toward Taft.
CO f., 90 1,rssizaDt Taft and -re 7olicv
- ts. ..4-,,s,,fst.s+fo,, arc concerned the
-, f,.rfr., NJ T.rr-. e,,srrfsr interests
. - Al r. 10 o c,rssr,-s..,-s and
-, -. 80, nh. es,.,.s d.. liberal
.-.-.-..s.I--- -, ,--, s,f.,rr,,s-, lam. M ar
-, 90 ,,o-s 1ibar7r man that which
- l,o,l+,s1~a r.sar s,,tar+sfrsF bv the
l,-,..-,,,,,.r+ .,,.f,,-r,.ss
I,,,, - fs r,,o,,,,fzs,7 that what is vague
u. g,-,..s.1 o. ..norf,fraI necessities
-, ,,.,,f,,, &, r.,..rtbsIsss Worn. 5afrir.
=, s,--.,.i.r..5 s.rs- brir~- o. srarfas af
cor,-,,Isfa,, -. f...,,. f,po, tbs president Of
IN. I-rfte5 states whoever re may be-.
and as Iops ss % second Presidential term
sin remains untitled TO do something
laIone,, tho line nj anti-+rusr prosecution
al frraetfya+ior that the President I'm
nc corocft, as g, nri,-are citizen might
NOT ,,rgo
PRESIDENT Taft moreover is Int one in