Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-10-27
CLEAN OUT STOCKS
0verbuying at Acute Stage in
the Market.
BREAK REACHES SIX POINTS
Appetites Satisfied, All Stop at
About the Same Time.
TARIFF REVISION CERTAIN
Business Interests Generally Accept
ing That Development If Demo-
crat Is Elected.
BY w. G.. NICHOLAS.

BY w. G. NICHOLAS.
NEW YORK. October 26-There has
been a wholesale and thorough house.
cleaning" of the stock market during the
last couple of weeks. The acute phase OF
the process was reached this week in q
break of four to six points in many OF
the leading speculative issues and some
what smaller recession in the more
steady-going properties. The market was
found to be heavily overbought-that Is
everybody felt bullish and bought until
their appetites were satisfied. and then
they all stopped about the same time
With the exhaustion of the buying power
prices stopped going up and a reaction
airy tendency developed. Then came
along the Balkan outbreak, attended by
decentralization in the continental mar.
kets. which found reflection in London
and In New York. 1t was some time
| before the New York stock market felt
the full effects of the European disturb
ance, although the cables announced
with positiveness that anywhere between
800 900 and 10000 shares Of American
securities had been dumped overheard.
These stories produced some effect, but
the accuracy of the estimates was
doubted. and the bulls made light of t-.e
stories that came in of European iqu1da-
ton. The certificates themselves came
in this week in quantities. every steamer
| bringing bales of the documents 1t is
estimated that during the last ten days
about 100000 shares have arrived in New
York having a par value of $4,000, 600.
1t happens. however, that the bulk of
European investments in American Sc
curities are in the high priced things line
Union Pacific, Reading. New York Cen
Southern Pacific, Atchison. Baltimore and
Ohio and steel. with a good amount of
Erie. Southern Railway and a lesser
| amount of the chief southwestern rail-
roads. 1t will be seen that the foreign
interest in Americans is diversified,
and when the stuff came out consider
able list was directly affected.
Now. the New York stock market can
usually take care of a load of that kind
, without much trouble. but on this occa-
sion the pressure came when the local
situation was none too strong-when 1t
was really overloaded-and the result
was decided break in prices. The big
| interests ATTEMPTED to give the necessary
support to prices, but when 1t was found
that the pressure was greater than had
been estimated support was Withdrawn
from several influential quarters MOI
only that. but there was heavy selling
of large blocks. Leading operators and
banking interests took the position that
1t was not really up to them to make a
market for all the disgruntled and tired
out holders who might want to take
profits. cut losses short or hold of until
purchases could be made to better adj
vintage. 1t may be stated as positive
fact that the dominating influences of
Wall street are almost unanimously bull
ish on the general situation. and that
they look for very much higher prices
later on. The demands upon the finan-
cial resources of the banks and capital
lists are unusually heavy and there are
other interests to take care of-interests
that have precedence over Wall street.
Provision must be made for the moving
of the crops and for the increased mer-
camille and manufacturing departments.
The general classification Is Legitimate
business" in contradistinction to Wall
| street and the stock exchange. although
the two are very intimately interviewer.
The securities market Is as legitimate as
dry goods. cotton or grain, but people
do not look at it that way.
Reactions Are Invited.
An "overbought" market is just as
dangerous as an "oversold" market.
When spectators attempt to put prices
up by the sheer force of buying before
the time is right for a grand upward
movement murderous reactions are invit-
. ed. These slumps are generally mere
stock market incidents, provided under
lying conditions are sound, as they are
| at this juncture Nobody was really hurt
witnessed during the last fortnight, and
| which seemed to have climaxed this week.
There has not been the slightest inter-
ruption to the movement of tonnage on
the railroads or to any branch of the
manufacturing or commercial industries.
| On the contrary. continual expansion Is
| the rule. excepting in railroads which
have already reached the full limit of
capacity. The United States has
never been in full enjoyment of such
universal activity as at present. Compa-
MES and institutions which have been
| struggling along for two Or three years
| under heaviest pressure are making
money hand over fist general resump-
| and where there has been dividend dis
| tribution on a restricted scale the out.
look Is for increases all along the line.
! The outlook has rarely been brighter or
| existing conditions more satisfactory to
| capital and to labor.
To many the chief disturbing feature Is
the accepted certainty Of tariff revision
Wall street and the business Interest,"
generally are quietly accepting that de-
velopment as one Of the things from
which there is no escape. The election
| of Mr.. Wilson. the continuance OF a
democratic majority in the House OF
Representatives and strong possibility
| II democratic control Of the Senate are
discussed as things accomplished and tc
be faced with all the consequences. Fol
| some reason that is not clear. the ascen-
| dency Of these new forces has come to be
| regarded as possibly the best thing tina,
| could happen. The closer the street be.
| comes acquainted with Mr.. Wilson the
greater the confidence that he will be g
| safe man. 1t is now believed that hi:
| influence will be to restrain radical po-
litical action. and to go about the all-im
, portant issue Of tariff revision with due
moderation and a desire to avoid unneces
| sary disturbance in manufacturing ana
! commerce. The belief becomes stronger
that he may even forego the calling Of
Congress in special session, which unit
lately has been accepted as a foregont
feature of next years program-in the
event Of democratic triumph at the polls
| These assurances, while seemingly un.
| reasonable and contrary to previous opin
| ion, are widely entertained, and there Is
| a growing conviction that a Wilson ad
ministration may be dignified and orderly
and for the repression OF wild notions.
All Have Overbought.
The street was never so full of ten-share
twenty-share and flfty-share stock GER
tificates as at the present moment, a fea.
ture which goes to show that lit e peeps
as well as big people had committed the
mistake of OVERRIDING 1t on the buying