Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-07-16
TROUBLE FOR BEARS
Banks Will Not Allow Them to
Raid Stock Market.
VAULTS FULL OF MONEY
Plenty of Cash Available to Keep
the Price Level Up.
BUSINESS OUTLOOK BRIGHT
Despite Dismal Foreboding, Crops
Will Be Up to the Average.
e~,,<t> r1rac{oJ1v prnsporona
BUSINESS OUTLOOK BRIGHT
By W. G. Nicholas.
espondence Of The Star.

Special Correspondence of The Star.
NEW YORK, July IL. 1911.
So long as the banks and trust COM
NAMES have hundreds of millions OF
dollars of public money on deposit that
cannot be put to profitable use any
where else, there win be plenty to
finance the stock market and keep it
financed. There Is no particular rea-
son why they cannot maintain the sta
tility of the Wall street collateral
which is up on loans. and they stand
| like a solid wall against any and
every attempt to depress prices.
Bear raids are futile. although trad
ers are given a moderate latitude to
manipulate fluctuations so long as
they do not really try to pull OF some
thing serious. The market has with
stood a great variety Of assaults. and
| the average of quotations Is sustained
without much effort around the aver
age levels that have prevailed for six
| weeks or more.
Meantime conditions in the business
world are improving somewhat. and
| the Job of holding the market is
easier than 1T was two months ago.
Crops are that much nearer maturity.
and there is q fair assurance or big
yield Of almost everything that grows
out Of the ground. although the bound
| ing expectations Of record-breaki king
production will have to be modified.
| There will be more cotton raised than
ever before not quite SO much corn.
| wheat and oats as last year, put
enough to go around. give the farmers
an immense profit to add to their al
ready extraordinary surplus. insure
railroads at least an average tonnage
and guarantee the country against
| the necessity of further business con
| traction. In brief. the situation is
comfortable, and holders of stsocks
feel no particular uneasiness over the
future
Problem Of the Banks.
The banks must keep their surplus
| money busy. and II they can't place 1t
| in the so-calied legitimate channels.
| then they must let Wall street have it..
| II they piled 1t up in their vaults they
would be charged with cornering the
| money market, and be subject to criti-
| cisms which would make life burden
| some The west and southwest are
| drawing down thaar eastern balances
| from two to three weeks earlier than
| usual, and that helps some. On ac-
| count OF the early season the rush OF
| matured crops makes this move nat
| ural, and there is no strain in any d.
| rection.
Western farmers are also sending to
| market their old reserves In larger
| quantity than usual. They have big
| supplies Of last years products on
hand, and the fact that they are freely
selling at present prices shows two
things. They feel reasonably certain
| of this years yield. and they are salts
| ned with the figures they can get rid
Of the stun for. Not only are they
| contracting heavily for future de-
livery.
| In their own special field farmers are
| about the shrewdest merchants we
know OF. They know what it costs to
| produce their crops. and can generally
! be relied upon to sell when they can
get q good profit. Formerly they bulled
| their own products by buying futures
/ In the commodities markets. A trained
army OF experienced speculators sold
| against these country purchases and
| made fabulous sums out OF the carry
| ing charges. All that is changed, and
] now speculative money provided by