The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-04-20
WALL STREET IN
STATE OF Terror
Object of SO Many Blows That
1t Has All But Sue
cumbed.
MAY REGAIN ITS COURAGE
Not Likely That Laws to Accom-
plish Its Ruin Will BE
Enacted.
MAY REGAIN ITS COURAGE
BY b. G. FORBES.


next SIX months. Leaders I'm the bust
ncss world have begun to 20 a little
slower.
frrc. We have sold wholly unpre-
ced"ntcd total Of S2.400.o0o.o 200 OF COM
rloditics to other nations during the
iast twelve months, as compared with
purchases OF 1850, 100000. This leaves
credit balance OF s550.O0o. 800. which,
though large, is below the correspond
ing figure OF last year, and also OF
1898.
March Imports and also MarcA cx-
norts show decreases from a year ago.
and all Indications are that our foreign
trade. after it's period OF extraordinary
expansion. will contract considera bly,.
PARTICULARS on the import side.
Tariff changes. when finally made
effective in lay. may mark the begin
Ming OF a substantial revival, although
the present belief among our fnanciers
Is that general business will not re-
fect confidence and prosperity for
quite somo time to come
Qufeter trade aud smaller imports
will tend to alleviate, ST not obviate.
monetary strinEency In the autumn.
and therefore should not be regarded
a. an unmixed evil
he state OF our own as we'll as the
European money markets cannpt be
contemplated without mlseivings All
high. and our own credit position is
unpleasantly extended
Al the same time the world was never
confronted with heavier deluge OF
new securities. The amounts of capital
urgently wanted are appalling.
Wall Street cannot be blamed for
Having rnoncpolized Americas supplies
of ready cash. Docs II astonsh you
TO learn that transactions on the New
York Stock Exchange have since Jan
fuil
trasted with last year. while the
shrinkagc in bond sales has been al
most 40 per cent?
Yet banking loans have increased
alarmingly throughout the country
The gross expansion for all classes Of
institutions has been probably in en-
cess OF s5oo.oo0,O0o during the las,
twelve months, without a gain OF 81
in cash
Investors are in almost as dospond-
community. aud II can be truthfully
said. that the Stock Exchange and
everybody associated with 1t never
showed a whittier liver than is on daily
exhibition at present. What with Fed
oral Investigations, a plethora of State
laws aimed AT the institution, more
iisid regulations adopted and enforced
by the Stock Exchange governors and
genuine scarcity of funds the stock
market has about given up the ghost
entirely 1t trcmbles in every limb
Tine exchanges police committee" has
struck mortal terror into the hearts
OF brokers who used 10 handle the
speculative accounts OF such men as
lanes II. kcene. Daniel @. Reid, Judge
Moore. Bernard Raruch and other
heavyweight operators. Moreover. the
acceptance of accounts on thin ma rgins
has also just been frowned upon by
tic exchanges detectives. and il is
understood that this will still further
nf
have not hcsitatcd to trust we'll known
customers.
The stock Exchange will no doubt
regain its courage some time. II has
really lttie TO fear. such bills as the
enc introduced at Washington the other
day TO forbid the use Of the mails un-
less certain drastic conditions are com
piled with are scarcely likely to he
adopted
To stop the machinery OF the New
DIRK Stock Exchange would bring on a
panic such as even this land OF hnan-
cia1 upheavals has never known. The
sooner this elementary fact can pierce
the heads OF self seeking politicians
he better for themselves and the coun-
try.
scientific currency system cannot
be adopted moment too soon. Hap
pity. the Democratic leaders arc man
itestng an Intelligent desire to bring
forward currency legislation without
is, OF course. dead and buried Some
system Of dividing the country into n
large number of sections appears to he
favored, yet IT is not easy to forcsee
how cohesive, national scheme can be
prepared without setting UP some sort
Of central authority. To divide the
country into a dozen districts and set
up wholly independent machinery in
each would scarcely solve the problem
However, so much thought has been
plans have been proffered. that the adj
tninistration should be able to draw up
sensible, workable system, not too
revolutionary.
The public can have no Idea of the
magnitude OF the disappointment suf-
tered by banking, BY railroad and by
stock market interests last week
through the failure OF investors to sub
scribe for sSo.ooo.ooO st. Paul Railroad
honds bearing AZ per cent interest
and offered slightly below par.
The influential bankers behind the
1otation had moved heaven and earth
to Insure its success The terms were
the most attractive yet offered by any
important railroad System. The inten-
tion was to score such a triumph with
this sale that the whole investment
ina rket would be turned upwards
The naked fact. however, is that the
issue was not wholly subscribed for;
indeed, nearly one-third of the offer
The gloom now hanging over tho
local investment world Is black as
night. "If ST Paul cannot sell 1-a
per cent bonds below par, what Will
the public buy?" is the Respondent wall
of bankers and brokers alike.
Some things become so bad that they
cannot grow worse. My own belief Is
that We are row passing through that
darkest hour which proverbially pre-
codes the dawn.
Investors have been corrupted by
a superabundance of offerings of in
dustrial preferred stocks Yielding Z
per cent or more. and other securi-
ties of varying degrees OF merit that
they have come to look upon gilt edged
securities rs unnecessary Iuxuries. as
something which may be all very we'll
for old fogies In their dotage, and for
savings banks. but as. something en-
tirely unsuitable for tho wide-awake
investor.
This notion is in fair way OF being
dispelled. The losses Sustained by
those who ran after strange gods have
been so serious that there promises to
hA a rakJ1rn IN auntky