Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-10-17
FOUNDATIONS BACK
OF MARKETS BOOM
Agriculture and Industry Have
Every Assurance of Pros
porous Period.
WALL STREET is BUSY
AS SELDOM IN HISTORY
Brokerage Houses Swamped With
Orders to Buy and Sell
Securities.

NEW YORK, October 16.-These are
busy days in Wall street. Activity is
again the watchword, and there is no
room for anybody who cannot quickly
adapt himself to his own particular
task and do his duty with precision
and dispatch. Whether or not we agree
with Tom Lawson that the present
movement in the stock market is the
most frenzied speculation of history.
certain it is that the big commission
houses have in recent weeks been
swamped with buying and selling
orders on an unprecedented scale. while
market favorites have run up and
down the board at the rate of from 10
to 100 points in a single week.
While to the war stocks" have been
attributed the main responsibility Tor
the tremendous boom in stock Specuia-
tion. it is gratifying to note that the
standard railroad issues and dividend
tndustrials have shared in the pubic
demand for sterling investments Many
of the wiSeacreS are already predict
ing the direful calamity that will surely
follow the collapse of the present spec
ulative tendency; while others. cognl-
zant of the increasing prestige OF the
United States and the consequent in
crease in the value of her commercial
and industrial organizations, are as
sincerely convinced that the new mar
ket prices of Leading stocks are con-
eistent with the productive capacity or
the industries which they represent.
In order to consider this question
from an Intelligent standpoint, let us
inquire into the real reason for the ire
mendous demand for speculative secu-
rites. OF course, it goes without say
ing that first and foremost is the queS-
ton of redundant money. Mostly every
body of means has at this time good
~. hn N a III a
tendency of which is to find its way
into speculative channels.
Prosperity of the Nation.
But this is not the most important
consideration. Wall street is, after all,
but one of the important barometers
by which we may safely measure the
Industrial and financial conditions of
the country. When the country is de-
pressed financially. the stock market is
the first to reflect that depression.
plentiful, Wall street is up and ready
to give expression to the improved
conditions. Judging by these standards.
the present stock market conditions are
amply justified. Never before has the
United States produced such marvellous
crops, to be marketed at such excel
lent prices; never have our steel mills
and factories been under such pressure
y,
q small percentage of unemployment
among the steelworkers; never has
there been such a demand for our
products, both raw material and manu-
the world; never hasfhe foreign trade
balance" been SO highly in our favor
never have we SO greatly reduced our
Indebtedness to foreign investors. and
assumed the position of creditor, in
stead of debtor, among the nations of
the world.
These are the factors that compel the
upward movement of stocks, and at
the same time furnish the necessary
capital for those who desire to play
their favorites And while 1t would be
folly to attribute this general principle
to any particular stock-which. indeed,
might recede while its neighbor dis
plays an upward tendency-it is en-
tirely logical to look for a compare
lively higher price level In all the
standard industrials and railroad is
sues. The rise in the stock market
may, therefore. be interpreted in the
terms Of a reflection of favorable I'M
derlying conditions which promise in
creased profits to all.
Bankers See Prosperity Coming.
During the past month three impor-
tant conventions have called thousands
Of bankers from their offices and given
them another opportunity to observe
pEdCtlCdl COuultlOAs III tic CouillIS DIS
q whole-the American Bankers Asso-
citation convention at Seattle, the In
yestment Bankers Association conven-
tion at Denver and the Farm Mortgage
Bankers convention at st. Louis. Per
haps the most valuable feature of these
gatherings is the opportunity afforded
the financial leaders of the United
States to obtain frst-hand Information
relative to Industrial, commercial and
| agricultural conditions in the great
western territory.
Bankers who returned to New York
| during the past two weeks bring with
| them reports OF a new business revival,
one that will mean wealth and pros
perity to all the inhabitants of this
bountifui land. Getting down to par
ticulars, there are four general rea-
sons for the optimistic feeling that
prevails in every quarter. These are:
The enormous and constantly increas-
Ing purchases of American materials
by Europe: the record wheat crop, with
the handsome yield of other grains:
the sound financial position of the Unit
| ed States, with its total absence of in
| hation, and yet with an extraordinary
ease of money: the unmistakable turn
In the trend Of federal and state law