Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-07-09
ON SCHEDULE TIME
Wall Street Scares Show Up
About When Expected.
CROPS AND WAR ARE USED
Usual Little Furry Follows, Then
Things Calm Down.
BANKS LOOKING TO VALUES
Cannot Afford to Allow Any Serious
Break In Price Level-Groan-
ing With Money.
By W. G. Nicholas.
Of The Star.

special Correspondence or Inc STAR.
NEW YORK. July S. 1911.
The hot weather in America and little
war scare abroad were the things which
appeared to influence prices most this
week. These war scares are of annual
recurrence. They come about the time
the necessities arise among the old world
nations to raise money for the mainten-
ance of their oyer-extended military es-
Establishments. At such times it Is found
expedient to arouse the patriotic feelings
of the people so they will not grumble Sc
loudly over the imposition of taxes to
keep going the huge armies and
navies.
These annual explosions have become
almost routine in their regularity. and in
the uniformity with which the machinery
is put into motion After the money for
the ensuing year has been provided for
the manufactured excitement dies out and
matters proceed as usual. 1t might be re-
marked, also, that hot weather and
droughts are of annual recurrence mucn
professional crop killers and OF the
spectators who hire them.
Affects Stock Prices.
1t may seem to the uninitiated an alb
surdity that a little rumpus over a desert
country IKE Morocco should effect prices
on the New York Stock Exchange. but 1t
does nevertheless. 1t throws more or less
of a scare into the money and securities
markets of Europe. and they begin to
convert speculative holdings into cash.
The first thing they think of selling are
American stocks and bonds, because
there is always a quick market for them.
1t thus happened that for several days
this week there was a steady now Oh
foreign selling orders. the pressure occa-
sionaily being uncomfortably large.
Now It is well known that the great
money combinations favor the protection
OF the stock markets here. because, upon
the maintenance Of prices. depends the
security of hundreds of millions Of dol
lars Of Wall street collateral behind an
enormous aggregate OF loans. Any severe
break in securities of value on the New
York Stock Exchange impairs the COL
lateral upon which these loans are made,
and necessitates the calling for more mar
gins and q general contraction and I'M
easiness in the local money market.
Anything of q stirring nature Is there
fore regarded with displeasure by the
banking interests. which are quite as
much concerned over one piece OF news
from the remote parts OF the earth as
they are about crop scare or an earth-
quake at home, so long as the matter OF
fortunes OF g. few flying bands of tur-
baned horsemen on the sands OF the Sa-
hara becomes, therefore. matter of In
ternational financial importance for the
moment and may influence the value OF
billions Of dollars worth OF securities Tor
q fleeting moment, quite as much as
crisis in the American corn or cotton
crops.
Curious thing. the stock market. and
the factors that influence prices
Scare Did Not Last Long.
Wall street had it's first real crop scare
this week, and that didn't last long. The
weather conditions which were so threat
eninS and which have. no doubt, done
considerable damage in the southwest
and over large local areas In the north
west. were mitigated as the week drew
to a close. The damage was pretty well
defined geographically and Its extent
measured with approximate accuracy.
The crop injury, though severe in local
ities. will not materially cut into the gross
results, 1t is now believed. In almost
every department OF agriculture crop
areas have been increased this year over
recent average years, SO that there can
be substantial reduction In yield per acre
and still be enough to go around. This
Is a consoling feature OF situation which
might otherwise be disastrous.
It is also remarked that In the matter
Of corn farmers have larger reserves
from old crops than is usual. and for that
reason there Is not likely to be any re-
into account, unless conditions get very
much worse than they are between now
and autumn hArvestS.
Tho government figures on the cotton