The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-08-07
REIGN OF TERROR
IN WALL STREET
INVESTORS ARE AFRAID TO PICK
Up BARGAINS IN Sc
CUHTTIEs.
POLITICIANS ARE AT 1T
STABILITY WILL COME WHEN
ANOTHER LAW TAKES THE
PLACE OF SHERMAN An
THRUST ACT.
BY THOMAS C. sHoTWELL.

by THOMAS G. SHOTWELL.
NEW YORK, August "a reign
Of terror has prevailed for several
days in the financial markets. 1t
is not time to consider intrinsic val
ues, II one were TO consider intrtn-
sic values. it would be necessary to
say that practically all stocks In Wall
street are worth what they are selling
Tor and that some are on the bargain
counter But nobody wants even to
pick up bargain II he feels that
somebody may shoot him in the act
A hushel OF diamonds could be scat
tered along the Bowery with perfect
safety If gstling guns were trained
at them from every street corner aud
house top. Even persons who had
owned diamonds for generations might
he tempted TO throw them away II II
became a fashion to shoot diamonds
on sight. That Is the condition In
the financial markets to-day.
The country is rich and the crops,
although disappointing, are sufficient
to ensure enough business 10 main
tain earnings Of railroads and other
corporations at the present level at
the worst There has been no wild
speculation In stocks or bonds. Sc
curittes are more widely scattered in
the hands of real owners than ever
before In America. Business Is re-
yiving in a quiet way and, making
allowances for all the unfortunate
things that have happened in the
last month, the very worst that the
country has To look forward to is that
earnings of corporations will be only
slightly better than the present in
stead of a great deal better as the
crop outlook early In the season JUS
titled one I'm expecting
Market of Disgust
Prices Of securities are no higher
than they ought to be on the basis
of present earnings. 1t cannot be
said that they had discounted q boom
and that prices are being readjusted
now to correct such a mistake Of
judgment The persons who are SELL
Ing securities have no such ideas In
/ their minds. IL Is "a market OF dis
gust. The big people are saying that
/ II the public wants 70 unsettle bust
ness by applaudng the antics Of poli-
tictans who are seeking to steal cam
psign issues from one another. the
public Will have to bear the burden,
for the public always does pay the
cost or excitement In Wall street
There is not q citizen of the country
no matter how humble. who Is not
directly affected by the condition Of
the stock market A great many Of
the public persists IN believing other
wise, and because of that belief join
in acts that inevitably inture them
selves as the present attack on cor
porations Is doing.
II must not be understood that the
corporations do not need reforming.
II Ia the method that hurts. Instead
of proceeding decently TO enforce the
: Lax frs,s
lated openly go long as the CORPORA
tons would submit to political black
mail, the politicians first circulate ru-
mors OF what they intend tn do and
work up d dramatic situation at thu
crisis OF which the official action liz
taken which should have been taken
many years ago. The public does not
seem to realize that the prosecutions
begun by the government In the last
few years are nothing at alt but Of
fetal Acknowledgement that the gov
ernment was dishonest for q long Pc
Rod OF years.
Outlook is Chaotic.
AT times one Is almost convinced
that the newspapers are responsible
for the business depression in this
country at q period when all other
civilized countries are enjoying great
prosperity. But this Is only. an ap-
parent responsibility. for the newspa
pers simply reflect the public, and If
they attach unmerited importance to
the actions of the new Virtues" poll
ticians it is only because they know
that ii will please the public. Con-
gTess nasse d ,Isssses ard ss.sgsa ss tf4syn
are enforced. but the newspaper head
line rules the country.
Although the outlook IS chaotic at
the moment. the investor must not
lose sight Of the fact that the only
railroads are the ones involved in the
disputes now in progress. and that all
corporation form. However much
the important interests may rage at
the unfair attacks being made upon
them, they cannot withdraw from the
country without ruin to themselves
and they will stick where they are.
In few years a sane law viii re-
place the Sherman antitrust law. and
stocks Will be worth a great deal more
because the great prosperity that will
then come to the country will be pro-
tected by law from the onSlaughts of
the politicians. who object to the rule
Of reason. or course, most OF the
agitation will be forgotten or will be
rebuked when the Supreme Court Is
reached, hut unfortunately the dam
age is always done before that court
gets a chance to exercise It's consti-
tatinnal right OF enforcing fair play.
In the meantime investors are at the