The Washington times., 1912-07-28
OF TRANSACTIONS LIGHT
BUT UNDERTONE is FAVORABLE
No Incentive Sell While Speculation
Originated the Stock Exchange Technical
Possibilities
ny JOHN GRANT DATER,
Special Ffnsncial Representative t,e Munsey y,

Special
NEW YORK, July 2s.--It might be
said OF the stock market last week as
the venerable darky said of the attenu-
ated turkey In Thomas Nast's famous
old-time Thanksgiving Day cartoon.
that DE breed am small, but de flavor
am delicious" Dealings contracted al
most to the vanishing point comparing
well with the proportions of the darky's
FOWL: prices, despite some irregularity,
ruled strong, however. and a number OF
specialties and a few selected railway
Issues made good gains. 1t was purely
traders market, however, with nine-
tenths of the total business originating
within the four walls of the exchange
ITSELF In former days II would have
been described as "a characteristic mid
summer MARKET" and perhaps II would
De now, but for the unfortunate fact
that such markets are not symptomatic
or typical Of summer alone.
The best that can be said for the per-
'" nance. or lack of performance, Is
that IL the inciinations Of important
interests" or the day-to-day develop
ments provide no incentives for action,
and no impulse for forward movement,
they certainly are no longer provocative
OF liquidation. There have been no
signs of that since the mysterious SELL
ing movement. which started immedi-
ately after the nomination of Governor
Wilson at Baltimore, terminated after
about a weeks continuance. Since
then the market has acted very well
indeed from the standpoint of stabil-
lity. and the opinion Is gaining ground
that 1t Is working in accordance with
program, the main feature Of which Is
said to be to hold the ground already
gained: extending support In case Of
reactions, while checking any foolish
attempt to stimulate activity. until more
Is known Of the crops and the political
outlook.
An Orderly Program.
It would scarcely seem as though 1t
were necessary to arrange a program in
accordance with the above outline. for
a fair inference Is that II is about the
way things are likely to proceed any
way. At least liquidation appears to
have run Its course, and Is not likely to
reappear Immediately unless Influenced
by new forces or factors, such as might
be injected into the situation by po-
icdTbs Tic utNtlOphcnt OF money
stringency. or. Of course. some ''acci-
dent which cannot be foreseen. On the
other hand. the public shows no disposi-
ton Whatever to participate In specula-
ton. and 1t Is doubtful IL they would be
welcomed by the banking element IL
they did show such disposition-first,
because the evidences are accumulati ting
of a more active demand for money; |;
q nd tu hxyr
certain that politics may not prove dis
turbing.
: In particular. the money situation is
being scrutinized with much care. and
It has been in fact ever since the last
report of the Comptroller of the Cur
rency appeared disclosing a loan expan-
sion within the year of $343. 900. de-
spite decreased cash holdings. and ever
since the unexplained deficiency In the
New York banking reserves. Although
the reserves have been made good and
cash holdings have increased largely in
the last three weeks, time money was
distinctly firmer during the week. par
ticularly for the longer maturities.
which advanced about u per cent
Heavy demands for harvest money are
reported at both st. Louis and Chicago,
and rates have advanced at those points
That local banks are expecting an ac-
tive demand for funds is evidenced also
by weakness in short term notes. which
reflect some selling by banks, who are
turning the notes into cash.
The Autumn Money Market.
1t is quite true that the watched Dot
never boils, and SO the present anticipa-
u,hfph 10 70
are likely to have an old-time autumn
money market, may not be realized. II
one develops It should create no such
terrors as. In the past. for we must
not lose sight Of the fact that the
Aldrich-Vreeland emergency currency
measure is still on the statute books.
In the hope, apparently, Of assisting the
passing of the permanent measure, the
Aldrich currency reform bill. some eight
or ten so-called currency associations
were formed under the old temporary
relief measure. and these are In exist
ence with all the machinery and para
phernalia to issue bank notes secured
by municipal and railway bonds and the
like II the necessity should require Il,
Assuredly 1t would be an odd COIN
cidence, in view of the manner in which
the Aldrich measure was denounced at
Democratic platform. II while the cam
paign was raging the country should be
called upon to watch demonstration OF
the practical workings of this plan to
prevent monetary stringency. This, of
course, may never come to pass, and in
fact the time limit may expire and the
measure become imperative Without
ever being submitted to a practical test
Be that as 1t may, the associations can
be called into operation IL the necessity
arise this year, That should allay an.
prehension concerning the consequence
of a squeeze in the autumn money mar
ket, for II one should develop the
methods of relief are available.
Anti Trust Correction.
In a market as duh and professional
as that of the week, It cannot, of course,
be said that news developments cut any
figure whateyer The happenings were
discussed, of course, and It may be
added that Wall Street had ample leis-
ure for the discussion. but that was
about as far as II got. On Tuesday, to
be sure, when prices sold off, the recon-
mendations of the Stanley committee on
trust regulations, were cited as a rea-
son for the declines. but this was real
ly like arguing from effect back to
cause and the true influence of the rec
concentrations IL they had any at ali.
was very limited and confined to a few
professional traders; for the total vol