Bisbee daily review., 1911-09-20
WALL STREET GROPES IN FINANCIAL MYSTERY
No Apparent Reason Why the Market Should Pursue
 Sliding Course
FIRST JUDICIARY RECALL

In his current letter on the financial and commercial situation Henry Clews fails to find his optimistic pre- dictions of the last week unfulalled. He writes:
 Wall Street is completely mystihed and depressed by prolonged liquida- ton. Prices. 1t Is admitted. have de- clined to a point fully discouDtlng all known unfavorabie factors. The Mo rocean situation does not entirely eX- plain the present fall in yaiSi5z. .:: .:: | the first place, no one really expects war as 8 result of the present dispute between Germany and France. The prize would not be worth it's cost. War between Germany and France would mean an expenditure of not | less than S5,000.000 a day, would cause grave disarrangement of in- dustrial and commercial affairs throughout Europe and set it's partici- pants backwards full generation. There is every reason, therefore. to believe that ultimately the Moroccan incident will be satisfactorily ad- justed yet behind the whole trouble lies the portentous fact that Germany wants elbow room. Her large popula- ton needs land and resources for it's expanding energies. Germany i finds herself bottled up, with all the desirable portions CT the world pre- empted by other nations Conse- ! quently, whenever occasion permits | her diplomats put on the greatest { pressure possible at points of least resistance. This unGuestionably ex- ! plains the occasional eruptions Vit messed in Germany's international po- 1 Hey.
 ] As a result of Germany's. recent ! prosperity her credit at home and abroad has been greatly extended. | Considerable borrowings have been made in both France and England. | Credit Is always extremely sensitive, [ and under existing conditions it was | but natural that Paris and even Lon,
 don should curtail their accommoda- f tions to German enterprises as long
 as the situation remained threaten ! ing. This curtailment of credit and ! forced liquidation induced free sell. | ing of securities by German holders, {, including a considerable share Of ! Americans. which were returned to this market Failure to digest the ] recent S70,O00,OO0 Argentine loan
 was also a cause of additional em. l barrassmeht. The result has been a }. stain in thes money markets Abroad
 which may be partially reflected here,
 particularly LR view of our larger I purchases Of stocks from abroad
 Liquidation has, of course, weak ' ened the situaEon on the New York market. Over extended long accounts were closed out, and there has been undoubted free short selling by those who had a close knowledge of inside
 affairs. The general distrust bred by political agitation and the hostile
 attitude of labor at home and abroad aided materially the general weak ness. So, too, did frequent symptoms
 of trade reaction. Uncertainty as. to
 whether some of the more important
 dividends recently paid had been ful. f ly earned multiplied peraexities. De | creases in railroad earnings demon
 strated the smaller volume of trade.
 In some sections; merchants are dis appointed, crops were not record 1 breaking, although they may in the ! aggregate prove quite up to the aver ! age Added to these conditions we
 had a weakened technical position of
 the market. so it is not difficult to
 understand the reasons for the late
 decline.
 On the other hand the situation is
 not without features of encourage
 ment Our foreign trade is in excel
 lent conditions, a large increase in ex- ports serving tO strengthen our cred
 it abroad and to bring our interua-
 tional relations into more normal DO
 sition. The banking situation is also
 much better than some months ago | There is less Cver-expansion of cred it, and the banks are in @ generally sound condition. Land speculation ai the west has been checked, and neither bankers nor merchants in
 that part of the country share the | excessive pessimism which prevails in New York. Tn some directions the