New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-09-16
REVIEW AND DIGEST
A Week of ShadoWS-Higher
Money and Lower Prices.

nave ul'leu over lne STOCK market our
ing the week just ended, and reflections
from both have caused fluctuations
which have kept sentiment in a dis
turbed state and caused uncertainty TO
be the ruling tone. At the beginning of
the week gossip had wars and rumors
of wars surrounding our country and
imminent in foreign cimes, and the
market was sold for the bears on that
account. Bewildering reports from the
interior affecting crops and finances
were circulated, the attitude of the
powerful Wall Street interests was de-
fined as against any advance of stock
prices. the local bankers We're said to
be against stock speculation, and last,
but the most important, was the ques-
ton of money stringency. For the first
time this year there was real money
irritation, and the market felt the eff
feet Of stiffening rates. which resulted
in a heavy calling Of loans, with con-
sequent liquidation and falling prices
in the stock market. The picture was
colored by sensational rumors to
point where few bulls could DE found
who dared venture forecast Of near
return of average confidence. On
Wednesday and Thursday gloom set
tied over the market and dependency
was the result of declines in prices
which prevailed throughout most OF
the two days trading and left tran
of losses behind them
This general slump was directly due
TO the calling of loans. though the VOL
ume of business transacted was com
paratively small, which demonstrated
the absence of market support. Thurs
day was the first of the Jewish hon-
days. which doubtless had an appre-
clable effect on the volume of trading
but whether the trend of the market
would have had a different turn had
the attendance at the Stock Exchange
and in the commission houses been
normal can only be conjectured. Fri
day brought a quiet trading tone. ana
some betterment in prices, but there
was no rebounding action to lend en-
couragement TO an immediate bullish
tendency. Very little of a political
propitious or menacing feature during
the week. The Maine election passed
with only momentary consideration
and the trivial discussions which have
been used to cast an influence over the
market in other weeks were ignored,
owing to the actual factor Of money
presenting an issue TO be carefully
considered. But the money situation
does not appear to be so serious as the
stock market has accepted in its tenn
porary dismay The effect of sudden
calling of loans and increasing rates ~
similar to a long period Of either hot or
cold weather followed by a sudden
change in temperature. Sudden changes
always shock the system and are felt
more keenly than gradual changes.
For a long time New York has enjoyed
cheap money. While rates have ad-
vanced i'm other cities, while for weeks
past money has been going through
hardening process abroad, money has
been plentiful and rates easy in the
New York market. New York bankers
have been reassuring in their state
ments that no money stringency was
promised, and it IS very probably true
that the future will prove their fore
casts to be correct. Everybody VINO
has been familiar with the prospective
demand for crop and commercial funds
must have foreseen that rates must
stiffen, and the only surprise should
have been that money in New York
had not exhibited a hardening earlier.
But we have drifted on, talking about in
creasing money rates, but content IN the
fact that call money was easy, until IKE
the first snowstorm of the season after
the warm fall, when the chill has pene-
trated our marrow bones. the stock
market shivered and predicted direful
results. However, it is possibly just as
well to cause a check in such specula-
ton as the market has experienced in
the last few months. Such exhibitions
as have been made by the pyrotechnics
OF price movements in stocks pos
sessing no Investment value have not
inspired a pubic following, and such a
purely professional affair like the
house Of cards must be followed by re-
actions which are as spectacular as the
sensational rises. Fundamental condi-
tons are ripe for a strong investment
bull market, but any advance in prices
to have fair permanency must be based
on the loaning power Of lenders Sc
lected to inspire a public following. IL
would be an exception for a bull mar
ket to be based on specialties, several
Of which neither pay dividends nor
have paid dividends, and while all con-
ditions are propitious for an upward
unconventional there are large num-
Der of liberal earning and dividend
paying investment issues ready for a
good run-the market spirit and mo-
tive power at present are lacking. In
the field Of commerce and industry
further evidences of prosperity have
been reported from day to day. We
are promised record breaking crops in
foodstuffs and the cotton crop outlook