The Washington herald., 1912-01-15
FINANCIAL REVIEH
OF THE PAST WEEK
Natural Drift Of the Market To.
ward Quiet Provoked Pro-
fessional Attack.

New York, Jan. 1L-The business OF
getting prices down by main force De
cause the market Is DUR made some
headyay last week and was helped, op-
portunely for those engaged In the pro-
cess, by the Equitable FIRE. There Is no
doubt that on Tuesday, the day OF the
fire, there was more or less pressure
brought TO bear against values by specu-
Iators who sought 70 make Dear capt.
tar out of the apprehension naturally
felt at frst by many persons. over the
possible loss Of securities contained In
the Equitable vaults and the contln-
gencles that might arise by reason OF
the tying up of those securities for an
indefinite time. Happily this selling was
limited 20 a brief period and proceeded
from no operator OF wealth or promi-
nenoe. on occasions like this Wall street
shows its best side.
The governors OF the stock exchange
met early on the day Of the fire ana
Immediately announced that deliveries
OF stocks and payment therefor would not
be enforced until all troubles arising
out OF the fire had been disposed OF. rne
banks caused II 20 be made known that
practically no calling OF loans would oc-
cur and that people who could not get
at their securities by reason Of the IRE
could obtain financial accommodation a.
usual, and the generally helpful spirit
that Is characteristic OF the American
people In such emergencies was displayed
in full force.
Refused TO Sell on Tueeday.
Indeed. there is good reason TO believe
that various individuals who figure pretty
largely I'm the Wall street view. and VINO
II not actually hostile to the stock mar
ket at present are at least understood
10 be cold toward II. refrained from sell
ing stocks on Tuesday, although IL con-
ditlons had been different they might
have been sellers. OF course, fears as 70
the safety OF the securities in the EquitA-
BILE building substantially passed away
even before the securities began 10 be re-
covered unharmed. The history OF such
events In the country presents an unvary-
ing tale OF reinsurance.
The truth is, IN all probability. that a
decline in security prices would have oc-
CURED last week even II there had been
no Equitable fire at all. The fact must
be confessed as a prime factor In the
stock market Of the moment that the
public Is present IN the market TO only
limited extent as a speculative buyer.
People who actually own stocks are not
at all disposed to sell them; but. on the
have been up TO the present time to fol-
low an advance IN prices with buying
orders. Left to itself the stock market
would probably under existing condi-
tions remain absolutely dormant, but II
IL not the way with Wall street TO leave
the stock market to itself.
Professionals Are Hostile.
In nine cases out OF ten. whenever
the market falls into a rut professional
traders are inclined to become hostile 10
Il and to make commitments for the fall
with more or less freedom. They declare
on such occasions that the market has
become stale, that It Is 'overbought, %
and so forth. the truth being that after
a continuance OF such q market situation
as has been seen since the latter part OF
November. for instance, It Is probable
stocks are really more oversold than any
thing else.
Such a state OF affairs Is not at all
unusual. and instead OF suggesting a
decline of Importance in values, is one
that may very well be succeeded In due
course by rise In prices Of the first mag
nitude. II is interesting now TO again
recur to the parallel, that has up to the
present time been SO closely followed,
between the course Of financial and busi-
ness events in the country after the panic
OF 1907 and that which took place after
the panic OF 1888. In 1903. Just as in 1856.
or two years after the 1893 trouble. there
was a brief but active and vivid revival
Of business based seemingly upon the