The Washington times., 1911-01-15

NEW YORK, Jan. 15.-It must be ad-
mitted when everything good, bad, and
Indifferent which makes up the week s
budget of Wall Street news is taken
into consideration, that the stock mar
ket gave an excellent account of it.
self. The volume of business, to be
sure. was not large. and the profess
sional character of the trading was self
evident; but in the face of adverse de-
velopments and unsettling rumors,
stocks displayed a strong undertone and
In the end, active issues advanced
sharply, but the security list as a whole
closed irregularly changed.
The result speaks we'll for the resist
ing power of the market and went a
long way in discouraging operations for
the short account. In fact, upon find
ing that the real holders of stock dis
played no alarm and showed no dispo-
sition TO Iquidate upon what is usually
accounted bad news" one set of pro-
fessiOnals set about bidding up prices.
forcing the trading element to retire
their short commitments. In the clos
ing days of the week these operations
impaired an additional element of
strength and an increased activity to
the entire market. This, however, was
accomplished without charging public
participation in speculative undertak-
ings.
Suggestive Indications.
1t is difficult of course to foretell the
outcome of such a movement. The sug
gestive indications are that prices are
likely to improve still further: but
this is based more upon technical con-
siderations than upon actual happen
ings. Fundamental conditions do not
appear to have changed to any pro-
nounced degree, and the various prob
lens which have long been held to be
disturbing. remain as they were, await
ing solution. However. wall Street
anticipates events. and perhaps it is an
ticipatinG an improvement now which
will transform the present profe ssional
movement into genuine market. in
which the public will partake.
OF all the developments of the week
the feature which gave the greatest
to Wall street as a whole
was the adroit handling of the incipient
banking crisis, which threatened as a
result OF the closure of the Carnegie
Trust Company Now that this matter
has been satisfactorily adjusted by a
of ownership OF the Madi-
son Trust Company and the placing of
the Twelfth and Nineteenth Ward
Banks in strong position, as a result
of the cooperation of the clearing
house bankers and large private bank
ing concerns, one may freely admit
that great deal OF uneasiness dcvel-
oped in inner financial circles after the
close Of hnCineSS last Saturday
Good Banking Generalship.
Speculative Wall Street was not ac-
qualnted with the disturbing situation,
and was busily engaged in bidding up
prices, on the theory that the elimina
ton Of The Carnegie Trust Company
was not an unfavorable banking devel-
in fact. 1t is not-but
such an occurrence does not, on the
other hand, constitute a bull argument
OIL stocks; and the performance on the
exchange last Saturday was very much
.lisliked by bankers, who knew the pos
of trouble arising out of the
relation existing between the Carnegie
Trust Company and the uptown trust
company. and the two banks which d
former administration had brought un-
der a common control.
1t is good luck on the part of the
speculative element rather than an in
telIigent conception Of the banking
situation. that Wall Street today is not
Its utter, disregard Of the
serious aspect of the Carnegie Trust
Company difficulty; that is, the posi-
bility of the extension of trouble to
three other institutions. This would
have fred a train leading directly to
a powder magazine, with results pos
sibiy like those of 1907 The bankers,
whom I found in conference late last
Saturday afternoon and evening, when
Wall Street was away en-
Toying itself, fully appreciated the Sc
rious aspect of the situation, and were
bending all their energies TO avert inc
House Cleaning Thorough.
A development of this character fig |
Ires in the financial district as "a mega |
lively favorable happenings" In other !
words, something of an unpleasant ma !
ture which might have occurred didn't !
occur, and, in consequence, the incident
s dismissed from Wall Streets consid- |
Grafton. But the relief of the banking !
situation is really more than this, for |
he promptness of action on the part of |
the bankers shows them to be keenly .
alive to the possibilities. They took no |
chances they did not delay as in 1907, !
until trouble had developed and then !
,eek to correct it: they applied preven-
live measures, and effective ones at |
hat, in advance of trouble.
Anyone familiar with the methods !
pursued In dealing with the threatened
,ankirg difficulties on this occasion and
n 1907, will unhesitatingly indorse the j
present procedure, and surely 1t is more
han "a negatively favorable happen |
n.y." that banking affairs are shown to
Ie in the hands of men who have dem
,nstrated their ability to handle a deli
ate situation with such signal adroit-
ness that not n ripple disturbed the
financial markets. This is the more re-
in view of the disquieted state /
If mind of many small tradesmen up
own, following the looting of the
Savings Bank, and the fail
ire of the Northern Bank, with four
and 1900 depositors. through
dishonest methods.
Iron and Steel Prices.
To have added two trust companies
md two well-known banks to the above
'ecord would have been too much for
my community. AS a matter Of fact,
disturbing rumors affecting other insti-
utions were in circulation, and every
hing was primed for runs on several
rust companies and savings banks,
which, had they started, would have
,pread like wildfire. In adjusting the
natter, there has been more of a clean
I'D than appears on the surface. One /
desirable executive change has already
,een announced and another will prob
Lbly not be long delayed. In connec-
ion with this whole banking affair it IS
low clear that some of this house
cleaning should have taken place in
frntrhlnc ho hon fn |