Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-12-24
.GOULDS GETT|NGOUT
Control of Big Properties
Passing to Other Hands.
WALL STREET ExPECTANT
Thinks Something Is Going to Hap
pen After New Year.
FEARS NATIONAL ELECTIONS
But Historians Recall That Things
Are Never as Bad as They Are
Expected to Be.
FEARS NATIONAL ELECTIONS
BY II. ALLOWAY.

still SO long that to vote formal extra
vacation seems a trif1e curious. This,
however. Is beside the fact that however
poor the record for the closing year has
been. in volume Of stock exchange busi-
ness, there is prospect that the incoming
year will bring conditions better far.
1t has been much the insistence of this
review that the beginning Of 1912 win
mark the beginning Of new stock
market situation-that before long we
shall have activity along with buoyancy.
This is an anticipation far different from
what is generally prevailing, the ordinary
forecast not averaging much cheerful
ness. It Is the popular theory that, in
asmuch as next year is a presidential
election year. We are likely to have
such disturbance. uncertainty and up
roar that quotations will be kept under
the influence of depressing elements. Yet
the candid observer who harks back to
any national contest through twenty
years or more will find that however
discouraging the business outlook at the
start mas been In any presidential year
there uniformly has been the result of
better quotations before election day
much that was doubtful being discounted
IN the early stages of the campo gn
me coming year is. moreover. distinctive
In variety Of ways. This presidents al
epoch does not follow market buoyancy,
is not at the tailend Of BOOM Before
the election wrangling starts we have
reactions that are severe and far reach
ing leaving hardly any part Of the mar
ket untouched. Upon this account 1912
is unique; and there are other factors
which put the period out Of the ordinary
range of comparison.
Trouble in Other Marts.
1t is clear that foreign financial skies
are cloudy. that Germany particularly is
disturbed. Special pleas are put forward
to explain how the German situation is
different from what German appeals to
the American money market are suggest
ing. but this extra pleading is transpar-
ent. Germany needs the money It may
not be that these necessities are due
directly to over extension by German
spectators (either In industrial develop
rnent of in stock market COMMITMENTS;
nor is it sure that the Germany monetary
situation is exempt from international
doubt is that Germany last summer be-
came indebted to America to the extent
OF many tens of millions Of dollars
through the negotiation Of loans at New
there is as II by concerted agreement, a
demand of the return Of French advances
to Germany. This French policy does not
slacken. And. whatever the undisclosed
intrinsic status may be, there shows upon
the surface the discouraging appearance
Of international pressure against German
Dorrowers-and this can amply account
for the new and active appeals from Ber-
lin for quick financial accommodations
here.
That in this development there can be
anything disturbing for the American Sc
curity market Is suggestion pretty re-
mote. Still, during the past week New
York has probably loaned $25.OOO,O 600 or
ne
quoted rates which were stiff while there
has been IN the home money market in
the making of loans to local borrowers
no material change whatever. Funds for
nome purposes are in abundant volume
and interest charges stay substantially
below the legal rate. Thus New York
bankers remain confident of the whole
someness of our own situation. There Is
no money market change at hand so far
as American business is concerned.
Wall Street is Passive.
In a passive way Wall street seems con-
tent to accept the quotation irregularities
which mark the close of the year as in
dicative Of what is in no wise important.
Steel is strong and the other metal stocks
maintain frmness Two or three rail-
way issues advance a bit. But these
rises are ignored in the same inane spirit
which greets declines in other parts of
the market-the receivership for Wabash
railway not even exercising a thrill. In
the Gould Quarter-as suggested by the
Wabash surprise-there are l1r ding a va
rlety or factors which at any time may
become Influential! not only In the Wall
street situation, but in a broader way
George Gould Is preparing to spend much
OF his time abroad. He Is ready to turn
over to other hands the management of
the various conspicuous properties which
fhn okN ,l~
called the Gould sy stem. Since Western
Union slipped away from Gould control
there mas been persistence in a policy
Wn. en- can only be fairly construed as in
willing to quit the proprietorship of those
big corporations which have had the fam
lily stamp for years. 1t Is not secret his
tory IN higher banking circles that for as
much as ten years past a member of the
Rockefeller family has had virtually as
mueh to do with the control of the Gould
railroads as has George Gould himself
IN standard OIL the Rockefeller record
property, continuous ownership. unddm5n-
ished personal arrangement But in RocjIe-
feller investments other than Standard
on q rule has seemed to prevail diametri-
gone into Missouri Pacific md into a dozen
other conspicuous properties on q larre
scale, but always only temporarily AZ &
sour. Kansas and Texas has come clos
49, ~ ~SAAA9 SSAA CA~CVIlOu 1noTo twenty
years ago John D. Rockefeller purchased
a big interest, and later came into con-
troll. and though capitalists at. Amsterdam
bought later into the property, Mr.. Rookie
Teller continued still to maintain the al
rectng power. Only within the mast wear
has this particular record chanTed.
Standard OIL Has Cash.
One element in the situation not gem
orally appreciated has to do with the fact
that at no time tn all its history has
Standard OIL finance been to the present
extent rich in ready money It is within
bounds to estimate that 500, 600, 600 is on
deposit today in and about New York TO
the credit Of Standard Oil trustees
500 000.O00 above what at any recent
time has been this interests average
holding. This money In the banks Is
earning nothing. It Is not in reserve
without purpose. In vast measure it
represents the return from such liquida-
ton Of stocks as Wall street has seldom
known. These stupendously larger hold
ings Of cash represent a corresponding
decrease in the holding Of securities
1t Is not difficult for sane considerer
OF this situation to comprehend that all
this money stays wide awake-is alertiy
on the outlook for profitable reinvesf-
ment. And herein Is the very strongest
reason for expecting that before long we
are going to see an aggressive absorp-
ton OF securities. This may not come
till after further declines are recorded,
till after some demoralizing sensation
r.