Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-10-20

manded no SuppOrt-BritiSh conSOlS fall.
Ing to point lower than ever recorded
since Andrew Jackson lambasted the
red coats out of New Orleans. It's
pathetic spectacle in a government credit
this that is cut by Great Britain's pre-
mier security.
But elsewhere in Europe there is not
much opportunity for neighborly exul-
tation, for the truth that is being uni
formly told by practically every govern
ment security the world Over-America
the one lone splendid exception-is that
credit has gone lame, that national ex-
1genc1es are Strengthening, that national
resources have been Slapped into the dry
ness of dust, that national issues are in
every quarter fast resolving into the
naked problem of where is further cap
ital to come from. and what is bound to
happen IL fresh capital doesn't forthwith
come. Brave talk by economic theorists
and their mastering Of multitudinous sta
tistics lose soothing influence in the pres
ence OF the grisly growl that government
bonds are echolng. British consols sell
respectable receivership basis. And they
are not there by accident.
Explanation of Outburst.
The hysteric outburSt week ago car
to some extent be mentally comprehend
ed by the sensational records made on
Berlins bourse. The shares of the great.
est bank of the empire fell plumb dozen
points. Quotation of Germanys fore
most transportation corporation dropped
20: and over 70 was the decline in a lone
list Of securities-Canadian Pacific plung-
ing down to 90. after having but lately
been lowering up around 800. Banking
credits were in question-there was a
Veritable panic.
Germany has been specializing lately
has been having a boom. Its financial
commitments have throughout the year
become more and more extended, and
while dullness approaching deafness has
featured the stock market here Berlin
has been day and night up and doing
smiling scorn at our interpretation OF
opportunity, our willingness to be patient
and profit,ess. Financial towards they
called us. Taking Canadian Pacific fol
example of what occurred, in last Satur.
days European panic and as example Of
what for sequel has happened here. the
exhibit Is one amply warrarting pride in
ourselves.
When the New York Stock Exchange
adjourned from Friday to Monday, Cana
o.an Pacific had closing price around
2G3-and when Saturday and Sunday
nervous souls discovered what had been
the smashing experience abroad 1T would
have been strange had not there been
aggravating anXieties over possibilities to
follow here-there being currency to pre-
dictiOns that we might start in where
London and Paris and Berlin had left
from what any pessimist of all the
chorus ding-donged. Instead of accepting
and following the foreign quotation for
Canadian Pacific-still taking that stock
as signifying illustration-what here actu-
ally occurred had thrill in IL. Not al
252 which Berlin Saturday had recorded
but at 263. which had been our own Fri
day figure, the New York market calmly
proceeded to absorb all that was offered
and then still bid for more, and even at
n6x financial
ice'' Is foreign phrase that sinks out OF
fashion.
Reasons for Disquietude.
What threatened in the Balkan war
situation was pregnant with dire posi-
blities for Europe-and European eX-
changes have had-they say still have
grave reasons for disquietude. But. as
in this review last week was pointed out,
Balkan danger has no misery in 1t for
this country. Here war and government
bankruptcies do not figure and cannot.
On the American roster every entry is in
spiriting-scarcely necessary to rehearse,
so evident and conVincingly does the
record run: the record of our crops. our
corporation earnings. pussy Ianof' mercan-
tile activity, banking strength unentan-
gled and, above ALL ours the one gov
eminent credit of the whole world TO
which capital uncovers-Un1ted states
national bonds at premiums while else
where discounts are savagely rejecting
peril.
One extraordinary feature is setting
precedent aside. We have a national po-
litical campaign with no political ex.
element. in SO far as is reflected in wan
is a shudder period Of market worries
and flurries. This year no summer lake
was ever caImer. Ask any man of conse-
Quence in Wall street. regardless or MS
personal political relationship. what Is
the reason for this change. and the an
swer will uniformly be: Business Is out
of politics. Maybe it has been driven
out. Anyway. it is out.
= So far, indeed, there has been but a
single suggestion over which even those
most inclined to be nervous have halted
at all, and that has had attention the
scantiest-the declaration. that the first
act of a democratic administration next
March would be to summon Congress IN
special session for tariff revision.
In the stock exchange record OF this
week is potent evidence of Wall streets
ability to confront and command an I'M
comfortable situation. Unless all ordin-
arily accepted signs are valueless the
financial situation here Is not merely in
healthful shape but they who have In
luence in the shaping of market tenden-
cies are confident and resolute and able
to control
Technically the market is steadied
somewhat doubtless by the fact that a
very large speculative short interest ex-
tends throughout the entire stock ex-
change list. Even before the Balkan
snarl outbroke there was evidence OF the
existence of consequential short sales:
there was indication that conspicuous
traders had extensive commitments on
that side; there was suggestion, TOO,
that some of these traders were feeling
uncomfortable. were DESTROYS of chang.
ing their position. To that CONTINGENT
the Ralkan development came as a much
desired relief Then. instead OF cover
ing their short contracts. the entire CO.
terie rushed enthusiastically into selling
not own, which they had to borrow for
temporary delivery, which they viii have
to buy. back to make their original con-
tracts good-for 1t is obvious that the
bear account now is tremendously heavier
than for long time past.
One possible market menace remains:
it has to do with a mystery. What are
the Standard Oil crowd doing? What do
they propose to do? Their every move