The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-07-24
NOT NECESSARY tn
HAVE SPECULATION
PRESENT BULL CAMPAIGN is
TEACHING WALL STREET
SOMETHING NEW
BUYING THROUGH BANKS
PUBLIC ISMARKET-WIsE AND
BROKERS ARE FEELING THE
Loss OF FORMER
BUSINESS.
fBy Thomas G. shotwell.)

'b3 i HpIflaS y.
NEW YORK, July 23.--With return
from Europe next Saturday of Presi-
dent Lovett of the Union Pacific, some
important developments may be Elk
pected. BY that time the government
will have decided whether to appeal
TO the Supreme Court the case recently
decided against the. government in its
attempt to prevent ownership Of the
Southern Pacific by the Union Pacific.
The Union Pacific directors. obeying
the final wore of L. H.. Hartman, Will
not retire under fire but If the govern
ment abandons its case segregation
Of assets may be expected.
There has been heavy buying in the
last few months of Union Pacific pre-
ferred by inside interests and as we'll
known that Morgan and Rockefeller
interests have been free purchasers of
Union Pacific common and preferred.
II Is o understood that the organt-
cation of the National City Securities
Company was to put the National City
Bank in position 70 cooperate with
the First National Bank and it's First
National Securities company In finane-
Ing n new company which may pur-
chase the securities owned by the
Union Pacific.
The campaign for higher prices in
the stock market that is now in fun
swing is teaching Wall street that 1t
ia not necessary to have speculation to
have a good market. Speculation Is
desirable from "a brokers standpoint
for it means more commissions but 1t
is not at all necessary for the health
Of the stock market. The public Is not
In thu market speculative but there
~ was a time when the public had
such a large money interest in the
market from an investment point of
,-4A-- - Ill - 49, III
market the last few months has been
the confidence with which the general
public has held on to its stocks.
Buy Through Banks.
The public of the United States are
pretty well educated narket-wtse II
know that there IL value behind the
securities, however much politicians
may rage, The heavy holdings OF
stocks and bonds by banks and the
large loans OF the banks on securities
are not necessarily proof that the
banks themselves are specializing, for
thousands OF investors have In the last
few years learned to buy through the
banks rather than through the brokers.
The small volume of sales daily on the
stock exchange Is due very largely to
the new laws OF the State Of New York
and the new rules Of thu exchange
Itself thai discourages floor trading.
Most OF the big volumes In past years
represented the hourly In and out
transactions OF traders and II can be
fairly said that the volume OF legiI-
mate trading and investment on the
stock exchange In the last three months
has neen AT least as good as the aver
age OF such business and time In re-
cent years. The traders themselves
will realize this before many weeks and
their operations will raise the volume
10 respectable figures again. The bun
campaign has substantial foundations
in general prosperity, cheap money and
good crops.
one factor in favor OF an advancing
stock market Is the disrepute into
which government Investigations and
politicians are falling.
Wickersham no Busaboo.
Even Attorney General Wickersharn
has lost his power to brighten inves-
tors. In conmon with other wild
theorists he has solennly announced of
the supply and demand no longer oper-
ates in America. The L. :. stands
d!scredited through its attorney gen
eral who has gone so far az to COM
slider the ability OF having the govern
ment accept the task OF naming the
price at which everything Shout sell.
II Is fortunate for the country that a.
sane man sits In the White House just
now or the government would be RUM
ing amuck in such q way as TO
II Wild panic 9fr BUSINESS! Arr ssstG>fais4s~
ing proposition OF the politicians Is TO
have the public service commission in
New York city name the price at which
ice and other commodities should be
sold In the market. II the Public Ser
vice Commission undertakes TO name
the price of ice, that is a public neces-
sity. il will also have TO name the price
at which butter. eggs, bread, clothing
and other absolute necessities of life
are marketed. ms has only to supply
the rules of logic to the vagaries of
to-day to appreciate o funny they
are.
f In behalf OF the owners OF securities
it can be said that all the agitation
against the trusts has simply proved
the correctness of the principle on
which they are organized and has In
sured their "ermanenee. Laws passed
by legislatures can never overturn a
law of trade II the law of trade is cor
rect, and correctness of a law can only
be determined by actual trial. The
law of the single gold standard es-
tahlished itself through centuries or
l.latares In various. parts Of the world
did themselves the honor of confirming
II by statute, thereby performing a
solemn farce, The trusts are being or
| ganized In obedience TO developments
OF trade that no legislative power on
earth has the power to upset and the
ooner this fact Is recognized the soon
err the public as a whole will begin TO
get its letigimate share in the profits
Of sue organization.