The Washington times., 1911-09-17

tHdH IiIE-elBnI security issues llSte!C
on the New York Stock Exchange es.
tablished new low records for the yeal
on Thursday, while one high-grade in,
vestment stock, New York, New Ha.
ven and Hartford, for reasons peculiar
to that property, declined to a figure
below the panic price of 1907, and, in
fact, to a point not equaled before in
thirty-six years. A low record even
more startling than this was estab-
Nshed On the Boston exchange when
the Boston and Maine, a property affili-
ated with the New York, New Haven
and Hartford, was Influenced by the
same special considerations, broke par.
which. so far as any records run to the
contrary, is the lowest price at which
the issue has sold in sixty-five years.
Taking a broader view of the situa-
tion, one notes that violent declines
in securities have taken place in Ber-
lin, London, and Paris, and as a spe-
cial feature, that British Consols have
established another low record not
cqualed in sixty-three years. Coupled
with these recessions have come sharp
advances in market discount rates in
every European money center of i'm
portance save Amsterdam, together
with unusual fluctuations in exchange
on London, indicating a widespread
withdrawal of international accommo-
dation by France. These features, TAX
en- with the developments in the do
mestic security markets. indicate most
clearly and definitely a financial dis
turbance which knows no geographical
t. ..a11 ftEh
universal. and 1t can no longer be con-
sidered as a matter peculiar to this
country alone.
The Moroccan Disturbance.
II is a very odd fact that with the
source of the disturbance of the week
so clearly traceable to the tense situ-
alton which has arisen between France
tiations that practically every impor-
tant dispatch which has reached the
banking firms in New
York from London. Paris, and Berlin
correspondents has asserted that an
omen rupture and an appeal to arms
was unlikely The long continued eX-
change of notes. the following up or
anal answers, "ultimatums" with
amended and supplementary replies all
point toward a peaceful concluslon'
and yet while this is the political as
meet of the situation, the financial as
pect-the action of the markets-does
not vet indicate that result.
II seems apparent that Entl TINS nrc-
brand, the Moroccan situation, IS lei
nitely removed from the close proximity
of the powder magazines very n;tie III
the way of definite improvement Is 10
lie expected from the financial markets.
They should not continue indefinitely in
a state of fiux upon which they broad
ened during tie week, but with power
Inherent in Paris to withdraw funds
both from Berlin, London, and, TO some
extent from New York, and with all
Europe seemingly bent upon liquidating
such American securities as nave not |
plready been sold, one cannot reason
? bly, look for very confident buying or
for assured stability here
Many Disturbing Rumors.
Aside from the very heavy sales of
stocks for foreign account in the New
York market the chief unsettling de- |
yelopment of recent days has been the |
circulation of rumors affecting the |
credit of various banking firms and
stock commission houses. Certainly not |
since the most disturbed days OF the |
G07 panic have the names of firms OF |
he first prominence been mentioned as |
as during the present |
.eived all the credit for spreading these
alse reports, but sometimes / wonder |
f the conjectures of men, long OF the |
market and still unable to explain the |
jo-called Union Pacific mystery has
Tot contributed in part to starting these
nmors. Each day Wall Street has en-
,aged in a guessing contest as TO who
old the stock. and IT is easy to see
CIV this might start rumors.
That there is no foundation whatever I
thn nrfS nr-iT
erences of opinion or friction exists be.
ween the members of a prominent
anking firm, is e matter upon which
have been definitely and personally /
ssured by the various partners of the
rln, but the report is most persistent
nd there is no question that 1t is kept
live by idle street gossip. OF the other
umors dealing with the credit of a
arge banking firm and an important
tcCk commission house, leading bank
ess to inquire about The matter assert
nat there is not the slightest founda-
on for the reports. So far as these
len can determine the matter, there
TO weak spot anywhere with any i'm
ortant firm.
Sharp Breaks and Rallies.
When you consider the disturbed situ-
ion abroad, the heavy foreign selling
nd the outpouring of disquieting
lmors, the stock market behaved very
ELL Prices, to be sure, broke sharply
several successive days and many
ew low records were established, but I
were frequent and sharp, |
i'd the general list gave evidences
ther of an oversold condition and a
,sire to retire short contracts or that
aled buying orders were of increasing
Imbers and volume. This iC evidenced
' the fact that despite repeated breaks
I'd low records very many of the
e last full-day session of the week, ]
IT far from where they started on |,
onday morning. Saturdays sharp 6
i've against the snort interest carried 1
lprovement still urther, so that de-
lite the disturbed interval number Of {
'nspicuous issues show advances for
e week. II
This does not Of necessity indicate {
at liquidation has run its course; in &
e rallies would go to show that such !
not the case, but it certainly points I
the conclusion that the market has
,veloped into a more two-sided affair
an has prevailed in the recent past. .
still remains, however, that the
ajority of stock commission brokers
I'd investment houses complain of tine
ok of public interest and the dearth
outside buying and one explanation
the week was precisely the same as {
the very inception of the selling I
ovement,. namely. that there is an
'sence Of effective buying power in the {
arket. S
President Mellen's Joke. I
So far as news developments were :