The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-10-19
BIG SHR|NKAGE
UNDER WILSON
Stock Values Decrease S623, OOO,-
900, and Situation Must
Be Recognized.
TROUBLE IS WIDE AND DEEP
WALL Street Cannot Be Blamed
for Present Situ-
alton.
TROUBLE is WIDE AND DEEP
ny IL. c. FORBES.

New York. October 1S.-The market
values OF Afteen representative railroad
ana Industrial stocks has fallen s625,-
Ooo,0ot. fuzzy IL per cent since the
Wilson administrations advent.
What The shrinkage in all American
securities has totaled is beyond accu-
rate con putaiUn.
The nervousness lately displayed
cannot have astonished readers of these
articles for plain warnings have been
given hat all was not we'll.
have been criticized for being pes
simistic"
one international banker for ex-
ample said: Your articles of tho last
two sundays have made me feel blue.
WHY arc YOU so pessimistic?"
I'm glad TO lind YOU do not share
my views but are cheerful replied.
I'm not" ne quietly snapped Il don't
like the position at all. Only why do
you write it?"
There YOU arcl One should lie. One
must not tell the truth If the truth be
unpleasant Make the people believe
everything is all right. Let them buy
stocks
Well, that doesn't happen to be my
conception Of a financial writer's duty.
] believe in telling The truth. III gen
uine, NOT false publicity.
If the facts 10 not warrant whole
sale purchases OF stocks, the fault is
not mine If a proper understanding
of The situation prevents readers from
mourning losses in stocks and in their
business operations, has not Il useful
purpose been served?
Facts speak for selves.
Should one preach blind optimism
When caution is called for? Should the
public be deceived into exchanging
hard cnsh for securities that insiders
are only TOO ANXIOUS to get rid Of?
When 4 storm is brewing should one
stoutly affirm that nothing but sun
shine lies ahead?
This loss Of over 100000, 600 in nf-
teen stocks Is deeply significant. 1t re-
meets grave shaking of confidence
~ means that there has been very ex-
tensive selling of securities 1t tells
mat capital prefers cash to certificates
Las, weeks decline in values has
i.hodaned the scoffing ut the warnings
We nave been uttering. Some opti-
in'sts are wondering If after ali ihinrs
may be rs lovely as they thought.
The trouble is not TO be located an
ne floor of the New York Stock Ey-
change, in the speculative tactics of
professional operators or in day-to-
cay incidents in tho money market
The trouble is deeper ana widor
II Is NJ once national ana intornn
NonaL it is in part sentimental. in
part concrete
one big dominating fact is that
nose mt the head of the government
and those at the head Of Industry arc
al logGerhcads have lost faith IN oacb
ntner and arc preparing for more
serious fighting.
The prospects now are that q wor,, :
aole currency bill viii be ovolvcd
pfooahlE at the next session OF con,
gress. WI
me enactment of the tariff has nro-
"uced no Immediate characterization NJ
smyuhh ALREADY there has been severe
prosecuting IN steel and later imnor-
tan' Establishments will become neces-
saiy In various ls.Gs
Inc world wide recession I'm bustnos
% which predictions have been fro.
quently made ia these articles Is now
Inter way Britains exports are fall
ING on after a phenomenal era of tr.do
expansion; Germany is sufferinr frn,l
IhuustHal irregularities and France is
acting cautiously
ne scramble for gold continues. and
european bank rates are certain n
r'se despite The slackcn!mg in business
All bourses are weak
IN canada sharp reaction is in
progress and ready money there is nj
premium
everywhere it is almost Impossible
70 float now government or cor
Porate-on reasonable terms.
AeNico Is again IN most danger
Gus state and may unhappily. prccini-
tate international complications which
could not fan to have appalling con
sequences.
Then our own railroads are in =
auanday They know not whether
tiey VIII be granted an increase in
rates or whether they VIII he compelled
10 again advance wages. II the rate
+ question could be settled FIRST tho az
i4ttators' task might he easier Mean
Whlle, net earnings arc sinking rho
fall in August reached 10 per cent ~.
tnough II may Dc thut the roads ar,
not straining themselves at this crit.
CA Juncturc 10 make The best sbowirp
possible.
How Stacks HIVE Fallen.
IN presenting the following tahl.
showing how stocks have crumbled ir
price, II may he Well 10 rcl,,iD5 nros.
peeticc investors that the lower ouo.
tauons OF good stocl,s 10 the more a..
tsactive DO these stocks become Az in.
vestments
The time TO buy is when prices ar,
down, not when they are up
Although my own guesg g. nm, ~,
fluctuations are by no means oyer an,
that no one should dream Of b,,,'ir,
speculative issues on slender niare,oi,'s
Vet IT Is but right to point OH, IN
IN excellent income return can he IN
tanned on tho very best STOCKS az an,
rem, levels
Look Al the nigh quotations for ti
year, the low prices just estniIigI -.
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