Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-09-22
MONEY FOR CROPS
Arrangements for Financing
Output About Complete.
LEADERS DRIVE UP PRICES
Bears Easily Put to Flight Because
Of 0verselling.
MONEY MARKET ANNOYING
Uncertainty of Conditions a Real
Factor in the Situation-Bears
After Canadian Pacific.
MONEY MARKET ANNOYING
BY w. G. NICHOLAS.

BY w. G. NICHOLAS.
NEW YORK, September c1.-In a broad
general way arrangements have been
completed for the financing Of the crops
and general business through the remain
der Of the Year and into 1913. The job
was not as hard as the big f1nanciers
had anticipated, and the speculative ele-
ment which centers around the group of
giant banks is taking q more cheerful
view of the situation. The stock market
had been held back by these command
ing elements until the money situation
had Shaped up and clear insight into
the future could be obtained. The outlook
Is now comparatively plain to those who
have the handling of great affairs, and
who are in touch with the forces of the
money world.
A demonstration was made this week in
the stock market which shows how easy
1t Is for speculative leaders. backed by
the right people or assured of the friend
ship of the powers that be, to start
something. A leader of prominence on
the stock exchange took the market in
hand the early part of the week, and In
one day jumped prices 2 to points
with almost no effort He found that the
bears had overso,d the market and that
there was q umorous and overexte1ded
short interest The bears were put to
flight easily and bought in their con-
tracts by the hundreds Of thousands of
shares in two or three days. Deprived
of this element of support the market be-
came due for sharp reaction, in order
setback, however. did not amount to
much and a very strong undertone has
develope4. Whether the market will be
allowed to break away and go sailing is
still an open question. There is felt to be
no great need of haste, and matters may
drag along, with an occasional flare-up or
furry just to keep up interest in the
game.
Among the bullish incidents Of the week
were very optimistic interviews with
Chairman Lovett of the Union Pacific
and Southern Pacific systems, President
McCrea of the Pennsylvania. President
Young Of the New York Central and
number of we'll known bankers OF New
York, Chicago and elsewhere. Reports
from representatives of the steel trust,
harvester trust and many other of the
mammoth industrials came In to supple
ment the glad talk of the railroad men.
The international bankers also made
it plain that they were friendly. Advices
from Mexico represented the situation
there as being more encouraging for
fairly peaceful adjustment of troubles.
Madero seems to be getting the upper
hand and to be stronger in the good will
VI I1fe people tudl DIT ctuS liiiiO oti iAS ms
stormy administration. This diminishes
the chance Of the United States beng
obliged to forcibly intervene, although
that danger Is by no means over. The
presidential campaign is for the moment
forgotten as a stock market factor.
Money Situation Uncertain.
International money conditions have
been the real factor of uncertainty in
4 cit, foa% rr,ht
is only now beginning to be fully under
stood and appreciated. The demands for
funds were going to be heavier this year
and the first part of next year than ever
before, and the banks began very early
to prepare for the drain. This took a
whole lot of fine work, and the prepara-
tons extended over two continents
Money had to be arranged for in Europe,
task that called for skill, diplomacy,
patience and time. 1t is now all over,
with the result that American business
will have the cash and credit needed to
keep the machinery in motion. Bankers
are taking advantage of the situation to
exact high rates of interest, but they are
entitled to do SO. They had two or three
years of glut of money and very low
rates of interest. They are now having
an inning. Naturally, they are making
| the most of a strenuous demand for
money, and will continue to do SO. 1t Is
| their privilege and opportunity. 1t is
| plain, however, that the International
bankers are at last willing that good
| times should come. knowledge that
such Is the case has become widespread
| and is the great encouraging feature. 1t
| is what the stock market has been walt
| ing for.
Circumstances are conspiring to the
advantage of high finance. BY the time
moving purposes is over the era for
| refunding old bond issues and the f1ota-
| ton of new bonds and stocks will begin.
| The situation will be ripe for the huge
| manipulation. and the banker and bond
| underwriters will have a picnic. AS a
| matter of fact, a great deal of the financ-
| ing will be the simple transfer of new
bonds and other forms of securities
| small amount of real money will figure
| in the spectacular dealings. The bank
ers and negotiators will pull down enor-
| nous commissions and fees, but the gen.
eral situation will not be disturbed, ex-
| cept for stage effect. The big bankers
| like this sort of thing. 1t puts them in
| the limeHght and makes them look very
| important And better still (for the bank
| ers), the operation furnishes them an
excuse for immensely profitable rake
| offs.
There is talk in the street Of an ag-
! gressive bear campaign against Canadian
| Pacific. Whether or not the matter
| will ever get beyond the conversational
4
| Pacific is now selling at dizzy height
| and its very success has created violent
| opposition, which may eventually smash
| the price of the shares. The huge earnings
| of the Canadian system have been con-
| tributed very largely by the grain grow
| ers and timber men of the far northwest,
| and these people are now beginning to
| grumble.- They complain that they have
| been overcharged in order to enrich the
| stockholders of the railroad that carries
| their products to the market. They are
! organizing to compel reduction in
| charges and are making 1t unpleasant for
| the 'Shaughnessys and the Van Hornes
| nd the other multi-milionaire Canadians
| Englishmeu and Scotchmen. who have
been developing Canada for the last
| know when to quit. Furthermore, they
are being confronted with strong oppo-
| stion by the Mckenzie Mann combina-
| ton, which has built thousands of miles
| of railroad throughout the territory here
| tofore monopolized by the pioneer system.
| No Interest in Some Stocks.
| There has been very slight decrease
| in popular interest in the newer stocks,
many of which come under the classified
ton of good VIII stocks, and which
| have yet to prove that they amount to
much. Bull campaigns in many of these
| erly and successfully, and insiders have
made large sums of money. The spirit OF
| speculation is as live as ever Specula-
| tive action has shifted about, that is all.
| 1t has been transferred to a considerable
extent from the railroad shares n indus