The Washington herald., 1913-11-02
STOCK TRADING
LOWEST EBB
Many Uncertainties, Mexican
Troubles, and Trust Bust
ing Threats TIE Cause.
RAILROAD EARNINGS BAD
Features of the Local Security and
Financial Situation-WalI
Street Gossip.
RAILROAD EARNINGS BAD
BY 1. A. FLEMING.

BY i. A. FLEMING.
From debilitating inactivity, with semi
occasional spurts of moderate trading,
security market of America and Of the
activities of foreign traders as well, has
virtually gone dry.
No one knows just what wills happen;
no one can even hope that from this time
on the recovery is going to be slow, but
sure; predictions are worth face value to
any one who cares to buy them, but TO
the Street they are simply a waste OF
time reading them.
That Wall Street should have started a
bull movement upon the enactment of the
tariff bill was joke; that it should again
boost when Mr.. Vanderlip talked central
bank was the outcome of reckless disgust
over conditions.
The real things that make a security
market as viewed strictly from a Wall
Street standpoint are good railroad earn
ings, industrial prosperity, insuring en-
ployment, good dividends to shareholders
and prosperity.
Railroad earnings are not satisfactory.
In fact they are positively reverse. Rail-
road and industrial corporations are also
financially hard up and ''waterlosged'
with bonds.
Industrial corporations, with the fear OF
foreign competition on them, with de-
mands continually pressed home for in
creased wages with the dread of the
Sherman law and the fear of a Wilson
trust policy, are curtailing where they
can, while the signs of the times are
restricting orders from railroads and big
buyers of factory production. The iron and
steel trade contracts apace, though men
whose life work is to keep the fires going
are still cheering each other. even though
there are reductions in prices. If the great
sources Of collecting information are to
be believed.
Former traders, annoyed by the income
tax and seeing the trend, are awry with
the whole blooming security scheme at
the present time, and unless the big in
terests take the market from the hands
Of the bears, who are naturally impelled
to be little more cautious at these
levels. the situation is not likely to i'm
prove, and if it does it will be but tenn
porary betterment
The Mexican Sore.
Conditions in Mexico seem to be going
from bad to worse and is a cancer that
will more than likely demand the knife
to end its difficulties. 1t is one of the
Influences that tend TO make the market
sluggish, and the eradication of it as an
influence must come before any real
improvement can be expected.
Delay in the currency bill ought not to
work hardship on the street. as there
is still available the $780, 100000 Aldrich
Vreeland emergency currency, and the
law will not lapse by limitation until next
June.
Ten Per Cent.
Money at 10 per cent on Friday was un-
expected and, perhaps, unnecessary, and
brought forth this comment from a
financial publication:
Call money at 10 per cent with loans
of 100000 at that exoI bitant rate, was
the event of the day All sorts of eX-
cuses We're offered, sucf as preparation
for the November disbursements of divi-
dends and interest the financing of the
Interborough loan. and the loss of cash
to the sub-Treasury. None of these ex-
cuses justify this furry in money rates.
1t exposes the weakness of the banking
system at a time when bankers are try
ing to make Congress and the Federal
Administration think they know their
own business, and are capable of giving
advice on the currency bill.
Nothing happened that was not forseen.
Every bank and trust company knew that
November payments must be met, and
as November is a comparatively light
month this should have been provided for
easily. The banks were not caught nap
ping, that is, unless they are asleep all
the time. This money squeeze was dis
grace to New York and to the whole
country. Time money rates were not af-
fected. 1t will not do to say that it was
only a temporary furry. Such things
should not happen. Call money at 10 per
cent is unknown in Europe, though Eu-
ropean money markets are in worse shape
than the New York market. Banks
should make preparations, instead CT al
lowing borrowers to be bled for three
days interest at. 10 per cent. As New
York is in a position to draw gold from
London and sterling exchange fell to 4S5
or lower for demand bills, the affair
looks all the worse.
No wonder President Wilson insists on
q currency bill that will take control out
of Wall Street, when Wall Street lets
money jump to 10 per cent without reason.
This blow to New York's banking prestige
comes at psychological moment and will
affect the character of the currency. bill
in all probability. 1t was not the sinful
stock brokers, but the great money lend
ers this time The stockholders and
traders did not permit a furry in stocks
to follow q furry in money"
Ycsterday's Market.
1t was a case of marking time in
the two hours session yesterday. Steel.
union anu fedQlIlS ACTUALLY
held IA point gain, so did Southern Pa
cific and Pennsylvania Can preferred
was SIS higher, Liggett & Myers To-
bacco gained 3-4, Third Avenue moved
up 1-2, and Mexican Petroleum, after
dropping 8 points, closed with 1-2 net
recovery.
There was no activity nor any special
Interest in the list
The best thing that can be said about
the situation is that prices are grinding
on low levels Traders do not look for
more than a five-point break, even in
the event of Intervention in Mexico.
Secret conferences and the air sur
rounding army and naval affairs fndi-
cate that action of some character may
be expected this week.
It was a holiday in London and there
will be one in New York on Tuesday,
when the elections there and in a num-
Der of States are on.
Many traders took advantage of the
holiday intervening TO take three days
Tacation; some even took four.
Department OF Justice Activities.
The final hearings in the international
Harvester suit begin tomorrow at st.
Paul.
Further taking of testimony in the suit
against the United States Steel Cor
poration has been stayed until Noyem-
Der 10.
Washington Gas Company.