The Washington times., 1912-09-01

NEW YORK, Sept. L-Desplte IN
tense dullness, Wall Streets business
week was not devoid of important de-
velopments, two of which, while tenn
porarily antagonistic, seem destined to
have an important bearing upon the
future. Upon the constructive side was
batch of railway earnings for July,
by important systems like the Atchi-
son, Baltimore and Ohio, New Haven,
and the Union and Southern Pacific,
which were highly satisfactory. con-
firming all that has been said hereto
fore Of the improved tendencies Of
business. Opposed to this was dis
tinct hardening Of the money markets
OF pretty nearly the whole world, but
showing more pronounced manifesto
ton in London, Berlin, Vienna, Canada,
and the domestic market, than else
where.
Although the financial district did not
expect much of speculative securities
| in a week terminating in a three days
suspension of business, 1t Is doubtful
| IL the rank and file looked for such
| fattening out as actually occurred.
Business sunk to very small proportions
and was highly professional. In fact,
the commission house brokers said
there was no business at all. and they
acted as though such was the case, by
going out of town. many Of them ex-
panding their three days holiday by
two or three days extra. On Friday,
for instance, 1 dropped into the office
of one of the larger firms Of the Street;
a house which has four partners and
| two exchange members. Not single
member OF the firm had put in an ap-
/ 40, ND aca
was typical of many others.
Wall Streets Dull and Poor aDys.
Under such circumstances one can
not attach much Importance to the Sc
curity dealings, except as they indicate
the professional character of the trad
ing or reflect the disinclination of the
public to participate in speculation. For
the time being speculation seems to
have gone out Of fashion. That 1t will
become fashionable again, no one can
doubt who In in the least acquainted
with the ebb and flow Of the Wall
Street market; but 1t Is weary waiting
for the brokers and a very expensive
experience. 1t is quite notorious that
many houses in the Street, which trans
acted what is known as big business"
have been forced to go deeper and
deeper into their capital account to
meet office and living expenses, for
wealthy clients on whom they relied
for commissions have suspended opera
tions entirely, and bankers will take no
initiative. The wonder is that more
firms have not retired from business
and that exchange seats hold up so
well in price.
AS to this latter feature, brokers have
a grim joke among themselves, to the
effect that the price of seats Is main.
tanned "to keep the collateral good:
Many Exchange members, chiefly trad
ers, have been forced to borrow from
other and richer brokers on the board
on the strength of their memberships.
Under the rules of the Exchange that
members have a first claim on bro
ker's seat, loanable value attaches to
membership, the lender becoming to
all intents and purposes a preferred
creditor. According to current wan
Street gossip, upward OF thirty seats
Of younger brokers are heavily mort
gagged and, of course, 1t Is to the inter
est Of both the borrower and the lender
and for that matter the whole Ex-
change to keep up the price Of seats
Another grim Joke o,.sr Is from In she
gruntled bears, tina they would like
to sell seat short, implying. of course
their belief that the price must de-
cline.
Railway Earnings and Politics.
That standard railway stocks made
virtually no response to the really fine
showing of gross and net earnings OF
many lines. was a sore disappointment
to that element in Wall Street which
has been counting upon precisely such
a development to furnish a stimulus
| to the market. As already mentioned
in this column, there are many men In
the financial district who have been
skeptical of the full measure OF indus
trial improvement, because 1t was not
reflected in the largest OF all the coun-