Smyrna times., 1913-06-25
THE FINANCIAL CONDITION
And the Apparent Slowing Up OF Business
Throughout the Country.

American, giving that journals
views upon the financial condition
and the slowing up of business
throughout the country: There
is one matter. however, upon which
there is wide diversity of opinion.
All observers admit that there is a
steady decrease in confidence which
is materially affecting business; but
they disagree as to the cause. Tariff
changes are solely responsible. in the
judgment of many. Democ ratio
threats to enact banking and currency
legislation. in profound ignorance of
the requirements of both, are sug-
gested by others. The attitude of
the administration toward trusts. the
attorney generals attacks upon them
and his novel proposals for their
control these also are cited. We
have no doubt that all the influences
mentioned have a cumulative effect.
but they have, we think, only a sup
erficial bearing upon the fundamental
causes of the trouble. Our belief is
that loss of confidence on the part of
the ultimate investor not due, in |
large measure, to any of these things |
has become so acute as TO diminish |
the volume of safe credit, and that
enforced liquidation is the inevitable
result.
The Ultimate Investor Has Grown Wise
1.-The fact is simply that the ulti-
mate investor has grown wise. To
state it in terms his exploiters will
appreciate. he is no longer content to
be played for a sucker or to stand as
the goat. He has learned by costly
experience to discriminate in select
/ ing the investments for which he
pays his hard-earned money. The
corporations. which, with the aid Of
the banking system, have foated Sc
curities representing capitalization of
good will. blue sky and the mists of
the morning have gone step too far.
"All this is written plain in the
signs of the times, startlingly plain
except to the purblind vision of the
Wall street banker. State after state
has been passing laws making il a
criminal offense to issue these flag
rantly inflated securities. State af-
ter state is authorizing public utility
commissions to prevent such wrongs
: in the future and to put seal Of con-
demnation upon like triekery of the
: past. Yet in the face Of all this
there is little or no abatement in the
: launching of the waterlOgged issues.
But the tables have turned. The pub
s lie is no longer clamoring for falsely
} valued securities merely because they
bear o. K. of powerful interests. The
banks and the friends of the banks
(. are loaded down with them. but the
e small investor has made up his min'
r to buy only sound stocks and bonds
i And he has figured out how to ge
Is them, too. He argues that those VIII
are staggering under unstable stock
II will soon have to sacrifice some o.
/ their holdings; he is waiting anti
e securities that are above suspicion
" fall to attractive prices; then he vii
?. step in and take them and leave tn
insiders 20 carry their bundles of in
Ia fiated stuff.
~ Burden on Thoss Who Got Rake-ofi
Is s'In other words, 70 state the oh
u vious, readjustment is going on. This
et is, the ultimate investor is shiftin
the burden Of carrying the manufae
Is tured securities back to those who pJ
n out the issues and got the rake-oh
~ While this process is under way
10 would be we'll to discount the scar
yarns put out by stock gamblers al
q the alarming rumors skillfully circl
70 lated by bankers. DO not listen
the ''Glooms" who suggest the pO
- sibility of a squeeze like the manufa
a tured money panic Of 1907.
2 There is available law by viii
: upward of $500. 600. 900 of bal
= notes could be obtained by the ban
= upon short notice. And $500. 0OO
Z 600 would mean more currency tn
z the country has ever had to fall ba
: upon in time of distress. Secreta
: McAdoo, Of the treasury departmer
z showed in his statement the other d
: how baseless were bankers pred
Z tions Of a currency famine.
2 pointed out that not a single bank
applied for money under the Aldri'
= vreeland currency act, which mai
: II possible to get money for approx
state and municipal bonds.
x 80 our best advice to the inves
and the buiness man Is that suita
= for hot weather. Do not overwork :
not worry: keep cool.