The Washington times., 1912-07-14


off upon their long continued and sub
stantial Improvement, It will be re-
called that II was a matter Of general
comment that the market was ignoring
every unfavorable factor, and was ad-
vancing in the face OF bad news.
Something like the converse of this
developed during the week. 1t cannot.
OF course, be said that all news was
favorable. but very many Of the hap
penings-the Government crop report.
the statement OF increased orders on
hand of the Steel Corporation, and the
report of the copper producers on the
reduced surplus supplies of that metal
were of that character. wall Street
paid little or no attention to these salts
factory features. however, and stocks
declined persistently.
Naturally, 1t is impossible to foretell
whether q movement, such as witneso-
ed, Will continue and assuredly one will
not run an unbroken course, but the
selling had very much the appearance
OF the reception of retreat well
planned and admirably executed, OF
some important interest. At no time
were prices let out of hand and at no
time did the decline become dis6rderly.
Upon the only. occasion that anything
OF that character threatened, which
was with the copper stocks following
the violent break of the metui in Lor-
don, selling ceased and prices rallied.
But on the rallies which ensued, both
in the coppers and elsewhere in the
list, selling was resumed. AS the say
Ing Is stocks were always on tap" or
In other words, the market was sub
Ject to a liquidation. which from the
manner OF its execution could only have
been the work of clever hand.
Political Considerat tions.
AS the favorable features which were
ignored concern things, basic and fun
damental in the situation, such as crops,
which are the foundation of our Indus
try, and metals, which are regarded al
the barometer of trade. the rank and
file in the Street were much discon-
certed by the movement, and specula-
tive sentiment was considerably de-
pressed. One did not have to go far
afield to find the reason. Wall Street
has assorted and has persisted in the
belief that both the stock market and
general industry would rise superior on
this occasion to the uncertainties OF
the Presidential campaign, but here
curity prices, or so It seemed to the
rank and file. that such was not to be
the case.
1t is difficult to avoid the conclusion
that in the controlled and orderly
liquidation important interests were TAX
ing the measure In the stock market of
the confusing and uncertain political
outlook. That such should be the case
is not strange. for the situation politi-
cally is unlike anything with which the
financial district has ever before dealt.
This is particularly and peculiarly true
of the complications which are arising
over the Republican electors
From the Wall Street way of think
ing. at this time, the controversy mere
ly accentuates the likelihood of Gov
ernor Wilson's election and renders
more certain the possible revision of
the tariff by the traditional and historic
enemies of the high protective system.
Recognizing the timidity or cowardice
of capital, its adherence to changes,
and the bitter manner in which finan-
cial interests were denounced by the
convention of radical Democrats at Bal
timore. 1t is not strange II some one
more timld than the rest should not
stand on the order of his going, in get
ting out of stocks.
Liquidation By Pools.
Not all men, of course, feel alike on
a matter Of this kind, and assuredly un-
til the progressive party is we'll launched
at Chicago on August 8, and men may
determine better than now, its platform
and policies and chances OF success pre-
n nj n a he
during the week, seems ill-advised and
may prove very costly; but then, as
said before, different men think and act
differently on any given proposition.
and that is as true of the present per-
picking and unsettling political situa-
ton as of anything else.
This Is clearly enough disclosed from
the fact that while liquidation was self
evident in the market, 1t was by no
means general, nor does II appear to
have been shared in by miscellaneous
public. From this one may argue that
what may be disturbing to a limited
group of professional operators is not so
regarded by the general public.
The stocks which We're chiefly active
in the trading, and in which. for the
largest part, the most conspicuous
losses occurred. were the self-same Is
sues, which were bid up and which fig-
ured most prominently in the recent
manipulative advances. So 1t appears
not unreasonable that the operators
and pools, which bid prices up a few
weeks ago, are probably identical with
those now liquidatng. OF course. pro-
fessional bear trading Joined in the
movement and helped the prices de-
preston along. but bear selling is never
effective unless LIQUIDATION is running In
the market. and there can be no doubt
that a considerable line of long stock
was marketed during the week. That
a fairly extensive short interest is out
standing is probably true. but In that
there is safety, for the buying power Of
the public is at very low ebb. indeed
md repurchases by the bear party from
time to time give stability to the mar
ket.
The Future Money Market.
Speculative sentiment started off de-
pressed with the first session of the
week on Monday, due, no doubt, to the
heavy deficit Of S7,775, 900 in the reserves
OF the clearing house banks, to which
the brokerage element gave considera-
ton over the Sunday.
Although 1t was generally accepted
that the heavy loss in cash and re-
serves was a result OF special cI-cum-
| stances, the dividend and interest re-
Ouirements of the half wear the heavy