Evening star., 1913-08-31
Banks Enforce Collections.


spread liquidation, the banks were un-
sparing in, forcing collections of loans.
and as many stock exchange seats were
up as collateral the pinch in that quar-
| ter was especially severe. At the very
| moment of greatest depression. when
debtors had to resort to the last des-
perate means TO raise blood money, Sec
| retary McAdoo came to the rescue with
his reminder that the United States
Treasury had an emergency reserve Of
$500. .OOOOO for just such occasions. The
existence Of this fund had been over
looked, the banker being notably forget
full. They were mad clear through" at
what they construed to be the unpar-
donably bad break of a financial anna
teur
The McAdoo announcement however.
! put stop to what threatened to develop
into q ruinous panic. by comparison with
| which the catastrophe of 1901 would
| have looked small indeed. The lightning
| like change In business sentiment was
welcome revelation to the public, and eye
opener to the fact that man of alert
| courage and determination was in the
saddle of the federal Treasury and
| in q position to recognize real
| emergency on sight and perform his duty
| for its SUPPRESSION. There was not Nor
| gan in sight to do the Napoleon act, but
| the events of the last few weeks have
| gone far to prove that the loss of that
| type of leadership Is not necessarily fatal
| to the street. The financial status has
not been healthier in years-mOre free
from the menace of the terror-inspiring
! rule of an abnormal personality. The ex-
! perience through which Wall street has
been passing is educational and enlighten-
| ing in the highest sense.
| Steel had sturdily held the place of
backbone Price fluctuations have
| been narrow, and recoveries from minor
I reactions would be classed trivial in most
markets. Strength of undertOne has been
! the ruling characteristic of Steel. and the
same is true of Reading. Every time the
general market developed softness both
| Of these specialtieS hardened from the in
side range and impaired an appearance
| of improvement to the general list. 1t
was noticed. however, that many OF the
usually slow stocks moved jerkily and
with entire independence of other spe-
cialities. Texas Oil, as an illustration.
swung to 4 points in single session
and usually displayed a rising tendency.
Can turned strong and passlngly active
Canadian Pacific was volatile, and tray
eled nervously within 6-point range
Financial reports from that system were
remarkably bulliSh, yet there are many
who stand earnestly for the theory that
40 is rightful bedrock, all things con-
sidered. Those who take this darksome
view Of Canadian Pacific contend that
they are not insane-not yet.
Break in New Haven.
New Haven's break to below 80 on
the publication of the first true Off
cial figures of the disastrous record
of the year was not altogether d sur
prise. The price shrinkage covering
a period Of two years approximated 80
points. The publication Of the inside
facts as to net earnings was con-
strued by New Haven bears as fore
shadowing another cut in dividends
Opinion was at variance is to whether
the prophesied cut would be to per
cent or 5. 1t is barely possible that
there may be no further reduction In
the rate, but this better view Is not
popularly entertained. The influence
OF the New Haven report and also of
| the extinction Of the Big -Four divi-
dend was decidedly depressing.
The sale of seat on the New York
stock Exchange this week for $4,000
was an event Of Importance. in that it
records strikingly the progress that has
been made on the return road to revived
confidence and prosperity. Only few
weeks ago seats were drug on the
made at $4,000. the lowest quotation
since 1899. Membership privileges were
worth 5000 in 1895 and 1906 and in
! 1909 and 1910 they were held at $4,000.
sSeraasl7nesos sSe sas7eos cuiminstion1 but the re re-
oovery Of $4,000 in A few weeks war
over.
rarely been better, all things considered,
than right now" is the burden of tons
of written and printed advice sent by
bankers and brokers' to their list of GUS
| tnmers and near-custOmeFs thousands
of lists go through the mails specifically
pointing out stocks and bonds in the
'safe" Class that yield to od',s 81 per I cent t
~. un hainr generally followed. especially
~ seasoned shares that can be bought
bstween 90 and 100; this list in
| SS.hern Pacific, American Can
Ssou.uferred, Illinois Central New York
central and Norfolk and Western. The
| spse Includes Smelters. Amalgamated.
laso r.seI brooklyn Rapid Transit and
SWaS.peake and Ohio. The buying of
| eSnnad dividend payerS is not Quita