Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-05-09

That there has been a radical reac-
ton in the New York stock market
during the week just ended is not to
be wondered at, even without consid-
ering the effect of the Lusitania disas-
ter. For weeks and months now, stocks
have been rising on nothing more po-
tent. as regards the great rank and
file of industrials. than war orders. not
in the least indicative of a construc-
tive, but rather of destructive era.
And there are few who have the neces
sary enthusiasm to look for even a
modicum of prosperity when the great
est nations on one of the continents
are engaged in destroying. perhaps
$50, 100000 day in cash. to say nothing
of the other losses that go with the
destruction of property and awful loss
of lives.
Because of the great abundance of
cash, because of the reputed great
gagged in making munitions. the specu-
ative element has taken the entire
stock list up by leaps and bounds un-
der the leadership of Bethlehem Steel,
Locomotive and other stocks. to such a
point that a reaction was the one thing
to be expected.
The rails, while showing sympathetic
strength. did not follow the pace of the
industrials.
Stories of great profits made. many
by word of mouth, induced the public.
in larger number than for fourteen
years, to join the procession in buying
stocks for speculative and investment
purposes.
happenings that cause a semi-panic
in the stock market are never antici-
pated: they are untoward and unfor-
tunate and misfortune is ever on the
side of the bear trader. 1t is his chief
stock in trade. In times of peace and
quiet, with prosperity in the land,
stock values usually show strength.
but when the unexpected happens the
rush to sell holdings is helped along by
the bears.
Always there are traders who have
taken profits in a bull market waiting
for good reaction to get in again, and
just this kind of buying caused the
change of front after the first slump of
Friday and gave it a strong closing.
The slump of the week has been moth
ing to the rise of former weeks: the
unexpected is the most likely thing to
happen. and with the strenuous times
of today the wise trader will practice
caution on whichever side the market
he may decide to operate.
Railroad earnings are not showing
any important increases, save at the
expense of economies in maintenance.
etc. by which the net earnings loss is
reduced.
Daily clearings are satisfactory only
when the payments for foreign war;
orders are included; the activity on the
stock market also, and some important
bond financing helps out the grand
total.
Crop reports are satisfactory. not as
glowing as month ago, but the
chances for real harvest are above
par. Idle cars continue to accumulate.
and money is SO plentiful that loans
for three to six months to a year may
be had at lower rates than have ever
prevailed before at this season of the
year.
Elsewhere appears statement snow
ing that the banks and trust companies
of Washington have $s2,ss6.36s of de-
posits in their care. 1t is doubtful II
these figures were ever equaled in the
history of this city, and it indicates. in
a manner, the saving disposition Of the
people at this time-a spirit OF economy
that appears to be worldwide.
Few brokers, familiar and intimate
with the record of Wall street. look
for a continued b, i market at TINS
time while the trend to irregularlty
may bring demands for larger margins.
of the European war the export OF cot
ton practically ceased Efforts were
made to aid the staple, the Secretary OF
the Treasury taking the lead in an eff
fort to raise S134.ooo,0oo as cotton
pool fund to be used in aiding south
ern bankers loaded with cotton.
And then, when the country became
used to prevailing conditions. cotton,
being staple and a necessity. began to
move across the seas in quantity.
In the period between August l, when
the war started, to April 80. 1915. the
exports of the staple of the southland
from the United States totaled 7,1S3,-
TAT bales showing a decrease. as COM
pared with the same months OF the
previous year, Of ,04l. 1855 bales.
year ago France had taken 1.041.-
345 bales BY reason of destruction of
some of her centers and loss of 9TH
ers, she has imported but 542.O26 bales
this year. Belgium has not been in the
market.
This year, since March /. cotton has
been going out in greater quantities
than a year ago at this time. Here are
the figures showing how quickly the
decreased export trade Is being re-
couped. and one of the reasons why the
cotton pool money was never called
for:
e---Rales----A