Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-01-20
HNNllI1 UHUOE,
Last Weeks Depression in
Securities Market.
SensltlVeness Of The SpecuIa-
tive Sentiment 10 Politics. !.
New Bond Issues Take Advantage
OF Buoyancy Following.

New York, Jan. 19.-AnXiety over
the relation of politics to finance and
business was assigned generally as the
cause of last\ weeks acute depression
in the securities market. This influ-
ence was the more potent in that il
was brought to bear at time when
the market was already rejecting a
state of doubt growing out of signs
of slackening trade activity, which
had made speculation vulnerable to
unfayorable suggestion.
1t is additionally difficult for the
Wall Street community to read and
understand the sentiment of the
country toward it, and, that commun.
ity believes, it is similarly difficult for
the country at large to understand
Wall Street. Belief in this mutual
misunderstanding accounts for the
sensativeness of speculative sentiment
to every form of political action to-
ward financial affairs. After the APP
pearance of j. Pierpont Morgan before
the congressional committee, Wall
Street formed n theory that the in
quiry might be made the means of
bridging the gap between itself and
public sentiment through the revela-
. tIOil VI the real diItS anu point OF
view of the captains of finance. But
Wall Streets confidence in its OWL
theory was shaken when the Presi-
dent-Elect said, in his address at Chi
cago, that the banking system of the
country did not need to be indicted
since it has already been convicted
The effect of this address was sup
plemented by several events. The
message to the New Jersey LegisIa-
ture and the bills which made their
appearance i'll response to its recon-
menaations We're interpreted as show
| ing the trend of popular sentiment in
relation to corporations from Albany
| came proposals for enforced changes
| in stock exchange methods. There
were additional developments in what
We're to be signs of the halt in bust
| ness activity. The flow of money
| back to the reserve centers continued
| to be very heavy. Further cuts were
| made in the price OF copper, with con-
| sumers still hesitant about coming in
| as buyers. Even the steel trade po-
! sition was subjected to skeptical scru-
| tiny. although trade reports We're high
| ~ favorable. More stress was laid on
| the power for unsettlement of the
| revision of the tariff.
| A number of new bond issues were
announced to take advantage of the
| rapid recuperaton of the money mar
| ket. The weakness Of American Tele-
phone and Telegraph following an
nouneement of the convertible bond
issue was taken as a rather unfavor-
| able augury for new financing. More
gold exports To France did not stop
| the easing tendency of interest rates.
| Exports of domestic products con-
tinued at a high tide. with strength
| ening of the country,s banking cred
it's in foreign lands. The changes i'll
the Balkans negotiations cannot fail
| to have disturbing effect on all fl
nancial markets until a definite set
| Element is reached. The decline in Sc
curity prices carried the average for
| fifty active stocks to the lowest since
| the fall of 1911. when prices were
| depressed by the filing of suit for dis
| solution of the United States Steel
| Corporation.