Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-04-27
STREET GLUTTED
WITH |DLEFUNDS
Low Interest Bonds and Sc.
curities Are Converted
Into Cash.
SITUATION IS PUZZLE
TO MAJORITY OF PEOPLE
Conditions Uncomfortable, But Con-
fdence Reigns-Morgan Missed
by Financial Men.
BY W. G. NICHOLAS.

BY W. G. NICHOLAS.
NEW YORK. April 28-wall street has
not been SO glutted with idle money az
1t is at this writing. The bulk OF the
liquidation that has been going on the
last three or four months has been the
conversion of low interest bearing bonds
and other securities into cash. which has
been put into bank for personal account
or locked up in safety vaults. The bulk
Of this buried treasure belongs to people
of means who have taken this method to
make themselves safe against emergen-
cies, and also to be prepared to take
advantage of market conditions to re-
place their investments on better terms.
Nothing less than per cent is looked
at. and that must be of the safest kind.
The result has been an accumulation OF
stocks and bonds for which there has
been only a limited demand. The process
of readjustment has been exasperatingiy
slow, with the result that banks. trust
companies and sales agencies are loaded
to the guard with understandable goods.
Consequently there is no capital for new
issues by railroads and industrials. ex-
cepting at figures that seem almost
usurious. Conditions are extremely UNI
comfortable and although there 10 an un-
dertone of confidence In the solvency OF
the situation, there 10 a most lamenta bic
lack Of action in Wall street Prices are
about where they were a month ago. and
during that period they have been swing
ing within q range Of 3 or points. On
the surface it looks bearish and the pro-
fessionals feel as though they would like
to sell everything on the list. They are
afraid to go short. however In large
bulk because on all the reactions buying
support of a most potential order ap-
pears.
Buying Of Quiet Order.
The buying is OF the quiet. mysterious
order. Nobody seems to know where the
support comes from or what II repre-
sents Even we'll informed bankers con-
TESS ignorance as to the background
forces The stun is picked up almost
stealthily, in just SUFFICIENT quantities to
make traders suspicious and at the same
time it fails to inspire general confidence.
The situation Is a puzzle to the gfeat
majority OF people In Wall street IT -
manifestly to the interests OF the giants
and leaders OF finance to prevent a ca
Iamitous break in prices. yet these same
men appear to want to hold values about
where they are until they can see their
way clearruntil the legislature at Al
bany adjourns and the tariff problem
assumes more Of a certainty. Albany
has been a thorn in the side of the stocx
exchange and its clientele and probably
there will be no serenity In the street
until adjournment. which is an event
only short time distant
Morgan Il Missed.
The commanding personality of the late
Mr. Morgan is missed. Nobody has ap-
peared to take his place as leader be-
hind the scenes. Whether the house that
bears his name will be able to maintain
the old prestige is a matter OF doubt
BY MIR. Morgan's own testimony before
the Pujo committee his institution heid
about $50. 900. 900 of other peoples capt.
tai, left there for investment by hum
dreds of depositors. who thought more OF
the great fnanciers judgment than their
own and who have left their fortunes al
his free disposal. Although Mr.. Morgan
personally took only a supervisory inter-
est in most of this vast deposit. the fact
that he was alive and on deck gave to
his enormous clientele a sense OF safety
which may not be entirely maintained
under the new regime. MI Morgan had
declared repeatedly that he was the bank.
and that everything and everybody else
was subordinate to him and his dictator
ship. The partners, although many or
them are wealthy men, were inquired in
the machinery of the bank as little more
than clerks. The personnel OF the bank
was subject to change any hour. the
same as with the late P. ID. Armour and
the late Marshall Field. as we'll as many
others of lesser Importance.
The bank machinery Is there intact.
but the amazing personal influence OF
the genius who admitted that he per-
sonally was the bank Is gone. There is
an evident sense of uncertainty among
the surviving partners, as evidenced oy
the employment of a publicity agent
in the person of a veteran financial news
paper writer at a salary said to be So
600 a year. In Mr.. Morgan's hfetife that
was the one thing he would not stand for
publicity Mr.. Loeb's employment is
reported to be something of the same sort
of high class publicity for the Guggen-
helm interests, also at a fancy salary.
This seems to mark a new departure for
financiers representing vast and varied
interests.
Mystery as to Fortune.
know more about the location of the CO.
lossal John d. Rockefeller fortune. His
personal affairs have always been en-
shrouded in mystery and secrecy. His
LIQUID fortune is supposed by many to be
Close students and observers of finances
believe that his income exceeds $780,
OOO.OOO a year and that he has more than
81 900 100000 invested in stocks and bonds
VI aho AAooSea AoiS. EAab.oNoh
apparently entirely out Of active business,
he is known to be in close touch with
every important development and often
times has a leading hand In the great
swings that go to make up the financial
history of the country. 1t Is commonly
believed that he prepared for the panic
of 1907 by depositing in private safety
vaults more than $1OOOoO.O00 cash. This
came in handy when he went to the
rescue of several of his old associates
and personal friends. If estimates of the
amount and variety of his present hold
ings are anywhere near the facts. 1t is
hardly conceivable that he would permit
a serious break in prices or that he would
permit important advances until the
situation was framed up bet
ter 10 his satisfaction than II Is now.
Mr.. Rockefeller is believed to have been
behind the remarkable campaign in the
stock of the subsidiary oil companies
into which the parent organization was
divided. The speculation in this list OF
stocks has been on a terrific scale and
the price movements fantastic. There
nave been times when the combined mar
ket value of this group Of stocks has |
been three times as great as the best |
figure ever reached by the parent organ |
Ization. The theory Is that Mr.. Rookie |
Teller has been engaged in the manipula- |
ton i'm order to prove to the world that |
the government had been making a
of itself in undertaking to run /
his business. Whoever has been behind \
vr1s. fw.rs1 Ia