Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-10-26
Accessible Money in Large
Amounts Continues Scarce
Article for investments.
AVERAGE FOR STOCKS
LOWER THAN YEAR AGO
Market Full Of Cheap Securities,
But Public Is Slow to Buy.
Uncertainty Back Of Caution.
By W. q. NTCHoLAa

By W. q. NICHoLAA
Special Correspondence Of TIE star.
NEW YORK, October q, 1913
The stock market was narrow and
nervous at q somewhat higher average
price level than last week; no decisive
tendency developed. although sentiment
was at times rather more friendly. In
deed. In some quarters the opinion was
voiced that the end OF the heartbreakinR
depression had been reached and that
from now on there would be substantial
and permanent improvement It was no.
ticed, however. that this glow OF budding
courage did not infect or glowing1y en-
courage the banks. In fiscal quarters SEN
timent was without influential change
The bankers were vocally hopeful and
generally prophesied better times. For
the present. however. they suggested inac-
ton and the cultivation of watchful pa
thence.
The market is full Of cheap securities,
they are prepared to admit. but the situa-
ton is still one of uncertainty, and should
times not improve radically in the near
future stocks now seemingly dirt cheap
may descend still further.
The average of quotations is lower now
than q year ago. and then the course of
values was going to keep right on trav-
full prospect. The banking contingent In
dorsed bullish gospel. but maintained pro-
fessional caution when 1t came to ac-
tually lending money. A handful OF big
corporations concluded to act contrary to
this wise counsel and borrowed on a lib
eral scale-and on terms that seemed al
most usuriously prohibitive. As matters
have turned out the early borrowers OBJ
tanned the cheapest money Of the year.
Accessible capital in considerable
amounts is now a scarce article. and to
make the situation worse those who have
it on tap won't let go, at any price, And
still the parrot echo is heard: Don't be
alarmed or In q hurryl There is plenty of
money. Just wait awhile and there will
be big surplus at cheap figures"
Meantime the flow of capital Is toward
the vaults; not into the pockets Of those
who can make best use of 1t. And SO the
bull market Is thus far largely saturated
with uncertainty.
Situation May Change Soon.
Explanations Of the business perplexi-
ties do not explain. Arguments and
statements of alleged facts do not satisfy.
nor do they solidify badly shattered sit
uation. Solemn assertions from head
centers'' do not restore confidence or stim-
ulate investments. It CHANGED that on this
latest occasion the market was "over-
sold'' and when the shorts began to Gov
err an actual scarcity Of securities was
revealed. A quick recovery Of to 8
points ensued, then halt, with recurring
hesitation the feature. Another season
OF grumbling, uncertainty and timiditS
followed, and once more the actors on
the Wall street stage are called on to lis
ten to the song that has been sung into
their dulled ears for months. And, still
with all this repetition Of false prophecy
and keen disappointments, the situation
may change for the better any moment.
It Is q fact, however. that in spite OF
disappointmeuts and establishments &C
tual conditions are In the main whole
some. Crops have measured up to the
average Corn excepted), and Industrial
setback due to reduction OF duties is by
no means as serious as anticipated. and
recovery has already set In with quiet
earnestneSs. Railroads are harder pressed
than any other classified industry, and II
not given relief by the interstate COM
merce commission will almost inevitably
heavily handicap business recovery.
Thinking people will be likely to lose
whatever faith they may have as to the
sanity Of radical politics II the commits
sponsible opposition. This rate question
is felt to be of immeasurably greater i'm
portance as a stock market influence than
new banking legislation or ANYTHING else
squarely before the commissioners and
they may begin the formality of set hear
ings before the middle Of next month. 1t
is not beyond the range of possibilities
for the whole issue to be settled before
the end Of the calendar year.
"A Immediate market factor X NAV
be stated that railroads in almost every
section are already reporting letting
down in the volume of traffic. This Is
especially noticeable with railroads hav-
acter of tonnage. Coal Is one Of the
freight specialties that is holding up to
the highest past records. A veritable
coal car famine is reported in some Sec
earlier than usual and it may be that
the car shortage will be short lived.
Views on Currency Law.
Wall street has about concluded that
President Wilson will have his own way
with regard to the enactment OF new
currency and banking law-not the meas
ure as originally framed, but one that
has been refashioned to suit all hands
and meet formidable objections. As a
general proposition Wall street does not
care about either banking laws or taxes.
It has been observed that the country
and general business always survive
these readjustments Of the law-which,
contrary to common belief, are generally
designed for the public good and not in
frequently Twin OUT despite the skepti-
cism of the opposition.
Whatever may be the ultimate finish
there is little In the situation as it stands
today to justify deep uneasiness. What
ever may happen 1t is morally certain
that there will be money enough to go
around Cat price,. Lenders and bor-
rowers usually find way to get to-
Rether and do business How do you
know the sun will rise tomorrow" asked !
the teacher. 1T always has," was the |
sage reply. On the same principle 1t - |
safe to rely on the continued ability of
the banks, and on their willingness to ac- |
commodate friends. knowledge Of this |
simple truth subdues the nervousness OF |
the real borrowing and lending classes |
alike.
The pending compromise bill may not |
satisfy every man or every interest but !
inasmuch as 1t has been carefully ana
lived and approved by the highest talent |
opposition. real and fanciful, has pracu- |
cally ceased.
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