The Washington times., 1912-06-16

were dull and uncertain throughout
| Wall Streets business week, develop
ing pronounced reactions on occasions
! from which there was no substantial
recovery As the most considerable Of
| these declines started colncidsntally
| with the announcement that Colonel
Roosevelt had packed his grip and set
| out for Chicago to direct personally his
fight in the convention, the Street
evolved the interesting theory that this
was the reason for the break. Nothing
better illustrates, than this incident.
the fickleness of the speculative ele-
| ment and the rapid change In its point
| Of view, for heretofore the rank and
file has been proclaiming that the mar
ket was giving no attention to politics
or seeking to account for the continued
| strength Of prices on the theory that
! Colonel Roosevelt would be the success
ful Republican candidate.
AS a matter of fact the market was
SO highly professional that one excuse
| or explanation served as we'll as an
| other, and any one of a dozen things
might have answered Wall Streets pur-
pose. The Street must always have a
reason for an advance or a decline, and
| as the most striking feature Of Fridays
and as prices broke on that day It Col
| lows, naturally. that the brokerage ele-
ment associated the one with the other.
II prices had chanced to advance, the
| same feature would probably have been
| mentioned in explanation and with more
Justification, for there can be no ques-
| ton of the markets improvement along
with Mr.. Roosevelt's successes In the
nrtr III ha tofa
and there can be no doubt of the in
| creasingly large number OF important
| financiers who favor his election.
Political and Other Restraints.
It is wholly likely that the intensity
| Of the political situation, the bitterness
of the factional struggle in the Repub-
| lican party and the unpleasant devel-
opments at Chicago, contributed, with
such things as the money trust inves-
| tigation and the harvest uncertainty,
| to the creation Of a vulnerable security
market: that Is. these features distract
ed public attention. checked outside
| buying and rendered certain pools and
manipulators timid. The situation itself
| therefore. invited professional bear SELL
ing. and the market would probably
| have declined. for 1t was ripe for a re.
| action, whether Mr.. Roosevelt went to
| Chicago, or remained at oyster Bay
| mining a matter of this kind definitely
but what is clear is that professional
selling. not LIQUIDATION. was responsible
| for the decline.
| Although activity expanded as prices
! recedcd. ana although the entire list
! was influenced by the reaction to soni1
extent. the largest dealings and the
heaviest. declines occurred in precise
| l,. 1n. Hhiaaxy m.
iiicnt in the recent manipulations. This
| naturally went a 'Ong way In confirm.
ing the opinion that the performance
was nothing more than turn, in a
professional market, and probably the
persons most active IN the recent up
bidding Of speclalties were the princi-
pal sellers on the decline. This they
might " ell be, for no one should know
better than they the unsubstantial char
acter Of tn. movement in the low Rrade
stocks. II the general public wers In
| any wise alarmed over Mr.. Roosevelts
action in going to Chicago, which IL
stocks would not have been confined to
gambling counters
Money Trust Probe.
While politics exerted a restraining in
fuen:e on the trading. the apathy OF
the market before the reactionary ten
denotes developed was more directly
| traceable to the sessions Of the Puio
committee. which was engaged with
the task OF investigating the Money
trrst There Is no Disgusting the fac,
that MANY brokers brenthed very much
easier after the announcement was
made of the committees adjournment
until the autumn. Although It would
lave been 4 diff cult matter for the
committee to elicit any direct testimOny J
| from the score or more OF brokers who
were subpoenaed in connection with the
movement in Americah Can common
stock, 1t was feared by very many
persons that the counsel for the COM
T.ittee might bring out some facts bear
ing upon the manipulation of the stocks
which would not reflect to the credit of
the exchange.
As 1t Is. the feeling is general among
stock exchange members that the ex-
| change has been put in bad light
/ through the cvasions. admissions, and
| furgetfulness of essential details OF
i,ukiness on the part OF the officials
called before the committee. The Stock
ENC hangn. as an unincorpcrated asso-
ciation. is none too strongly entrenched,
| hut H. DerfOrms very important fun:-
! ton as a market. which provides capl-
| tai for large enterprises and determines
| the value of national and State funds
1 d
| Of great corporations, which are tbs
chartered avenues of the countrys COM
mercc. 1t does seem unfortunate then
| that the president and former preJi-
dent anil the secretary OF the exchange
| could no; have given \ clear exposition
| or the organization and operations OF
| The body and Of the details of listing
| securities and the like. which arc really
admirable in the safeguarding of in
Vestors.
Creating a Bad Impression.
The New York stock exchange falls
short Of perfection in many ways; In
failing to cause independent examina-
| tions of the financial standing Of bro
kers' firms, for instance, and in permit
ting manipulation to go too far, where
by values become grossly distorted on
occa sions. but offsetting these are many
compensating provisions which insure
honest and fair dealings. Since the
exchange has been made the subject of
Misrepresentation on countless occasions,
it's officials should have seized the OPP
portunity of putting the body in the
proper light before the country.
Through the evasive and unsatisfactory
testimony of officials, 1t is made to ap-
pear to the country that securities are
sometimes deprived Of a free market
through arbitrarily striking them from