Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-02-23

try, such owners as were not subject to
persuasiveness or nervousness or intimi-
dalton. such as had bought fully under
standing the value of their purchases
and, therefore, not only able but deter
mined to maintain their investment posi-
ton. This catalogue Of bull arguments
was not without its impressiveness. Most
Of the representations seemed to be true
some of them were indiSputably so.
Every Standard Issue Declines.
Yet the record of the period since en-
suing exhibits precisely what was forecast
here. Quotations for long list of stock
exchange securities have shrunken. Virtu-
ally every standard issue has declined.
And there now stares out of the situation
the revelation that in one particular GER
tainly they who were so optimistic, so ac-
cusative1y critical Of straightforward
analysis, didn't know what they were
talking about. Those great financial in
terests' whose books they attempted to
keep We're not committed to any such
program as was proclaimed.
Much of that vast "short interest
which came in for attack actually repre-
scented cleverly disguised operations on
the part of these very same premier
financiers-who. selling out their own
stocks borrowed temporarily the stocks
of other -people-for 1t would have been
handicap to liquidation on any extern
sive scales9if suspicion got abroad that
apparent bear raids were not real but
bogus, hot bear raids at all. but mere
devices to cover the retreat Of various
halOed Napoleons.
1t is not needed. however, to review how
the wise ones of Wall street in their ar
rOgance guessed wrong-and in their
awakening have whipped over to bitter
attacks upon anybody and everybody
agreeing with their earlier foolish and
eXpensive) commitments. They are just
as bearish at present as three and four
and five months ago they were bullish-
Observation-Disclosures. They now see
nothing good anywhere. Where formerly
they expected extra dividends, they now
apprehend assessments. At the top they
had only buOyance-at this moment they
worry over everybody being wiped out.
1t sounds like hysteria- 1t is not much
different. Yet, actually, what are the
facts?
Follower of OracIes Is Loser.
For months those who affect to reveal
public sentiment (having insisted that
there was no reason for worry, the same
contingent now whipping over to the doc
trine that there is no reason for anything
else than worry have been discredited.
Their optimism was expensive; their
pessimism destructive.
At present every>follOwer of the Oracles
Ia loser. But this does not prohibit. or
even moderately interfere with, the pOpu-
larity of the notion that finally We have
80 many discouraging elements as to
make it impossible for any one to make
money in buying and holding stocks. The
man who buys is Just now labeled q
lamb. The man who speculatively sells
is regarded as a prophet of profit. 1t is
bank balances. tariff destruction-the list
of disturbances y too long for recitation;
all these things are dictaphoned. In the
Wall street picture black is all that
shows.
If Wall streets own current comment
be taken at its face value there can be
expected no return in any way at any
time of aught else than disappointment
and disturbances. At no time in the pres
ent generation has there been any pes
simism comparable with what now pre-
walls throughout Wall street. 1t is
simply impossible to overstate the black
ness that streaks the present situation.
Yet, actually, as above noted, what are
the facts?
Gone Disturbing Factors.
Not a single grewsome element of all
those marshaled is vested with CONT
nuity 1t is Observation-Disclosures a va
riety Of factors obstructs security market
improvement. 1t is true that Mexico's
bad for the United States as it does for
Mexico itself. 1t is true that the con-
quest Of Turkey has American relations of
consequence vaster far than any super
fetal consideration yet has revealed. 1t
is true that the European bank policy
of boarding gold, and using pessimistic
addresses to depositors the world over.
has consequence here, for the reason that
this curio method naturally enough in
duces suspicion of American securities
and suggests their liquidation.
1t is true also that at Washington
within the next sixty days we are sure to
have tariff revocation proposals-probably
Observation-Disclosures to upset the Sc
renity of hosts of investors in mill stocks.
1t is true that the great crops Of last
year may represent money spent In ad-
vance. 1t is true that investment ex-
pansion has been at the expense of cor
poration net earnings. 1t Is true that
wages and material and every purchase
item in business has advanced tremen-
dously in cost 1t is true that a hun
dred items of encouragement can be
recited.
Maximum Depression.
What is there new in this? We have
known Of it all along. Every item in tne
pessimistic calendar has already been dis
counted. The truth Is that for months
and months all Of us have been worrying
over it continuously. In the long list of
bad things there is not one single entry
which is not familiar to every human be-
ing that knows single thing about the
stock market The dark side has lacKeu
nothing-the dark side. has been over
BACKED.
Every body depressed-that's the situa-
ton.
Now, the fact is that practically the
maximum Of forlornness has been reach