The Washington herald., 1913-09-07
Bankers, by Conservatism
Have Prevented Expansion
and Made Safe the Future.
OUTLOOK ENCOURAGING
Wall Street and Local Security Mar
kets in Good Condition-Gos-
sip and Comment.
By I. A. FLEMING.

about all. The demand for money Is the
one thing that continues unabated, and
while inclined TO hold a tight rein on the
situation, bankers are more generous and
are anticipating the end Of the stringency
with the passing of the fall months.
The very conservatism that has paved
the way for good possibilities of the tall
and winter months has been the leading
factor in preventing any untoward occur
renee.
Bankers kept their assets up TO higher
standard than usual, even the contingent
that aims to be always ultra-ConserVa-
tive. They frowned on expansions IN
directions that were in any way nazarH'
they refused TO consider loans for any
material length of time, sticking rather
closely to thirty ard sixty days; they
cared for their customers and put on
brakes at any sign of questionable en-
largemeut of operations.
In this way they have kept operations
to meet necessities, and have made them
selves strong without hampering leSlu-
mate business.
New enterprises have been thoroughly
Erilled before aided. speculation has been
Prevented. with the result that bankers
are in good shape to meet the demands
Of awakening trade and the increased
business lldl Will lOllbN AlAt ANANA II '- A4AN
winter colony. the opening Of the shut-up
section of the city.
EusIer Money.
Every one expects easier money. The
United States will draw heavily of Eu-
ropean yellow metal with the marketing
OF the high-priced cotton crop and the
exports of wheat. corn, and other prod
ucts. We will have a trade balance by
the middle of October OF over $io0,0CO.Oo0.
Europe has been denuded to a great eN-
tent OF American securities, and when
the settlement comes it will be in pounds,
shilling. and pence.
Ii is not likely that money on time Will
fall below per cent on commercial loans
but an ample supply of cash at that rate
will help business.
Business generally is good. factories
have not shut down to any extent but
are very generally employed, and the
outlook is good. tn" waiting for the tar
IN to be settled having restricted ad-
vance buying and cleaned cut stocks,
which vii! have to be replaced once the
majority puts its measure into effect.
The Poor Farmer.
1t has been the habit during the eN-
ira session Of the present Congress to
express much sympathy for the poor |
farmers. the agriculturists of the South |
and West But the efforts to prove !
the banks Of large cities culpable of Ill !
treatment of small country banks has /
been complete failure. With one e&- |
Ception the South patted Northern bank |
ers on their broad shoulders and affirmed |
excellent treatment. The Western banks !
have always received ample funds from |
correspondents. They demand it. They /
are entitled to II.
But the Western farmer has once more (
shown his independence.
There is one retail mail order firm i'm |
Chicago that will sell S0.ppLO0U 4 goods !
To the farmers this year, and over
El", ,OyUO00 next year.
What is more this firm gets the cash |
IN advance. while the country merchants
Ere compelled to take butter and eggs |
md trust for the difference from month |
% month, more frequently from crop to /
harvest.
II there is any special interest in the |
Middle Western States that needs as
sistance it Is the country merchants
" ithin thousand miles of Chicago. And |
their plight will eventually hurt the lsb-
bers seriously. the jobbers Of the Twin
Cities, of Chicago. st. Louis, Kansas
City. Omaha, and other distributing
points
Parcel post has not as vet caused any
reduction in the cost Of living; eggs
still sell at 81 cents a dozen, uniformly,
IN little and big stores Of Washington.
but the country merchant has received
1 blow from which he will not recover.
New Haven Matters.
other people have said il. but it did
not count with as much force as when
Thomas A. Edison says it: Il suggest
that newspapers refrain from criticising
the New Haven Railroad for time.
has demoralized discipline
there"
The road has IS steel cars in operation
and 2ll ordered. The Pennsylvania had
B7 steel cars ordered in 1872 and 292 in
1913; New York Central 2s6 ordered in
1912; Hartman lines ordered 2l2 steel
rars this year; st. Paul is making sub
gtitutions as fast as possible.
1t would cost about $6l4O9,OO TO recon-
struct all the passenger rolling stock
In the United States.
II would Ioo& as if the railroads needed
assistance in this admittedly greatly
needed reform. Will the Interstate Com
for even a per cent raise in freight
rates? Probably not.
Just n straw.
From the Wall Street Journal:
"A successful investor visited a prom
nent brokerage oftlce this week ana
placed good sized orders for the purchase
Df stock. The house inquired as to his
reason, pointing out that the crop situ-
alton is decidedly unfavorable, and was
to find that he ddisregarded the
crop factor almost entirely. His attitude
ne explained as follows: Money is be-
coming cheap. ohon account. of such
apprehension as induces people to lend II
rather than invest ii, but as a result of
The passing of apprehension such as led
10 boarding of funds on a very large
scale in Europe, and even in this coun-
;ry, to an extent greater than We are
willing to admit. The business situation
S absolutely sound; and while a few
stocks may be unable to maintain their
present dividends, / think man who eX- n
.rcises ordinary intelligence should be I
lble to select securities whose dividend
,eturn is not I'm the slightest danger. If
noney for a long time period can be OBJ
aimed at per cent or less, standard
Itocks will not remain on a basis toi
7ield 6 per cent or over. An unusually s
avorable opportunity is afforded to the {
INVESTOR right at this minute, and 1 be-
isve that the shrewdest investors are
Lvailing themselves of it," :
Local Securities,
II should be a satisfaction to investors
n local securities that while values in S
Vail Street have been melting, breaking t