Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-11-09
kay TO MARKET
IS EASY MONEY
Tight Cash Strings Hinder
Buying When Stocks Con-
tinue on Bargain Counter.
DEPRESSING FORCES
TANGIBLY effective
Shown in Recent Election
an Admitted Element in Specu.
lative Thought.
BY w. G. NICHOLAS.


BY w. G. NICHOLAS.
Special Correspondence OF The Star
NEW YORK. November S. 1913.
The election was the market
sensation Of the week not be-
cause of the magnitude OF the dis
aster to Tammany. but because of
the exposure of the widespread and ex-
banding extent of political sentiment in
support of the Wilsonian gospel of
modern progress. To the rank and file
of the majority voters hereabouts the re-
suits in Minnesota. Indiana, Massachu-
sets and other states in which there
was balloting were individually as i'm
portant as New York, but collectively OF
overshadowing portent and as develop
ment of more than national consequence.
The prevailing feeling among conserVa-
tives has been that with the advance Oh
time wisconsin would lose in force Inc
week has unfolded most surprising me
of proof to the contrary. The growth IN
the sentiment of "progresslVeness Is
described as impressive, ana most cor
tainly developed into diversiheu lnal-
ket influence of Temporarily prIhaiy III
portance The deep thinkers profess
to believe that the weeks events WI.
proye TO have been merely a record OF
minor incidents. soon forgotten. however,
that NAV be it must be admitted tnat
politics is a disturbing element ihere
is something more than trivial Ia .,
force SO disturbing to the nerves u
business, and of speculative thought:
The Mexican complications ahoIo
another factor Of deep concern 10 III
vestors and spectators. Ihere Is seiso
of exhilaration among the SouIlssi ga
ments over the prospect of wal anu
a further wide territorial expansion, ana
they refuse to see anything bearlsh IN the
view. Anything to supply eXcilenieI. a.
allopathic doses must be Dulnsh. dccolu
ing to the commonly accepted ruling ana
every particularly lively paragraph from
the front inspires the buying spIll..
There has not been enough OF inns soIe
of thing however, to set real ouii Sdin
paign going. Only those posseaSsu ~ ~
abnormal hopefulness have the nerve 10
preach and believe that the STOCK mar
ket is due for an immediate upheaSai.
On the face of current 1acts .neiE ~. -
little in the situation to warrant pullis.i
action at this writing not ex Ven -; ,noa NV
reputable stocks are obtainabie IN any
required amount, yielding = to per cent
Banks Discourage Borrowing.
A tight money market frowns in the
face of hopefulness. Banks are cur
failing their reserves and dlscouraginS
borrowing. They indorse and nourish
the DEVELOPMENT of miserliness in the
stock market, and only advise pur-
chases when strenuously urged or go
ing through the semblance of being
urged Railroads buy new material anu
equipment only on compulsion' pro-
testing that they are out of money ana
can only borrow at rates that are ma
4 1x-
The weekly reports reflect a small
and steady decrease in earnings In the
volume of tonnage on practically all
lines even those favored with per-
petual specialties like coal, copper and
farm products. Even these roads COM
plain loudly of Improbable business
and declare that prospects are gloomy.
Without the five point rise in freight
rates. for which they are petitfoning
the interstate commerce commission.
early poverty is the prospect. the trans
portation spokesman declare. The COM
mission is said to be scheduled for
hearing of arguments and statistical
explanations in a very few days. Pres
ident Willard of the Baltimore and
Ohio and chairman Of the fifty-tWo as
ISOLATED petitioning companies will
make the opening address on that side,
and Attorney Brandeis will fill a CORE
spending role for the government.
There Is all sorts Of groundless gossip
Of friction and bad blood. but it can be
said with absolute certainty that a
state of actual cordially between the
principals e-ists
Rate Hearing Convincing.
The program is for a strict and un-
biased presentation Of cold facts in the
most convincing manner, and final ac-
ton in accordance therewith-to the
end that precise justice shall prevail
Claims and charges that the decision
has been reached in advance is founda-
tionless, and their circulation is an ir-
ritation.
One Of the richest men of the nation.
acknowledged leader in the creation
and development Of variety of giant
industries and on closest terms with
the principal people OF American af-
lairs was asked by the writer what he
thought OF the business and investment
situation. and whep he expected re-
covery. He made lengthy reply. Of
which the following is a brief and care
ful condensation. we'll worth close and
general absorption:
me forces of depression that have
been active for several years are he
coming continually more tansibly eff
fective for disbursement. Men n
AFFAIRS have been chilled into slower
movement and greater caution. The
other days is rarely in evidence now
me anaxing results Of the speculative
frenzy OF 1S97-1907 were solidified into
scores and hundreds of stupendous per-
sonai and corporate fortunes Specula-
ton In the stock market was a mad
frenzy throughout long period. The
poison OF artificial stimulat ton inf1amed
millions of men and eventually Gre
ated a widespread prejudice against
big money. Popular ill-feeling found
expression in hostile legislation and
successful assault on concentrated en-
terprise. Business great and small.
felt the weakening influence of the
crazy orgie, and for the last eight
years the process of readjustment and
liquidation of unwfse speculative con-
tracts has been going on
Wall Streets Fashion.
1t is quite the fashion in Wall Street
to voice the opinion that the worst is
over and glorious recovery is right at
hand. / must confess with keenest
reluctance that I cannot yet feel the
glowing impulse. i have been bull
by instinct and practice all my life and
today my actual investments in securi-
ties total very large. Fortunately,
felt what was coming and three years
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