The sun., 1916-11-06
OTHERS AWAIT A SLUMP
Heavy Liquidation by Substan-
tial People in the Last
Two Weeks.


remarkable resistance to weakened
technical conditions. and II Is believed
probable that In the event OF the cleo
tion Of Mfr. Hughes a sharp advance
will be recorded. but II Ia not true that
prices will not become susceptible to the
sure. 1t is an xtraordinary market.
but traders who hold the Idea that II is
wholly a one sided market may be rid
Ing to fall.
Persistent strength In prices for the
greater number OF securities with ad-
vancing movements In the low priced
shares which are becoming OF some ac-
tual value because Of increased earning
power. naturally tends to attract an
enthusiastic public following In the stock
market But the public evidently is
somewhat overenthus' 'astic. while many
Of the larger Wall Street interests are
waiting In the confident expectation that
they will be able to accumulate new
lines at cheaper prices because OF the
recklessncss Of the outsiders who have
been tumbling over one another to get
in at quotations which In the greater
number Of instances Are beyond any
ever before recorded.
In the last two weeks there has been
heavy liquidation by substantial people.
Their sales were not based upon the
theory that the bull wave had run its
course. but upon the belief that the posi-
ton Of speculation warranted temporary
lower levels.
Conditions Based on the war.
Conditions underlying the intrinsic
value OF American securities are
stronger than ever before reported In
the history Of the country. bu, un-
fortunately they are based chiefly upon
the war in foreign lands. Purchases
by the foreigners in this market are
enormous and the greater part OF our
merchandise exports IL for the account
| OF the warning nations our export fig
ures show that although we have bull,
| up a tremendous balance Of exports over
| imports shipments OF our products "a
| neutral countries has been relatively
| light. and that Furthermore the inward
movement Of commodities has incrca sed
heavily as compared with 1915. the rec
! ord Of the ninAmonths ended September
| 80. for instance. presenting an increase
| In imports TO the value OF more than
| s2et. t.00O,o 900.
Roth exports and imports are csre-
c!ally interesting at this time In rela-
| ton to discussions regarding the end OF
! the war and what would happen tn this
country at that time II the unsound
economic theories OF the present Wash
| ington Administration were then II
| force. Exports for nine months of this
year to the Allies increased 81 per cent.
| as compared with the corresponding
time last year. while imports from IN,
| Allies increased 81 per cent. exports
totalling In value s3.0Ol.142,S93. agains
$l,797,552 In the year before, ant
imports to'alling s7l6,452.35s, agains
SAGE 0l7.606 in 1915.
OF the total export trade for min,
| months rs per cent OF II went to III,
nations at war. compared with II pei
| cent. In the same time last year. Will,
| OF the total Imports 80 per cent. cam,
from the Allies. And for Septembci
alone so per cent. OF our exports wa.
Tor the account OF the Entente Powers
Increasing exports are due almos
wholly to the war. Increasing import
are due TO our large buying power to ou
present tarifr law and TO the anxiety o
foreign countries to get into our attrac
tive markets. And with the war owe
tho import movement will reach glgan.i
proportions unless the tarifr is reforme,
along lines that will keep the cheap Eu
ropean goods FROM entering America
ports.
why Some Voters shifted.
Herein lies the reason why 80 man,
Wall Street men who under ordinar!
conditions would vote the Democrati
ticket will cast their ballots for MI
Hughes. They see In the success Of tn
Republican ticket the surety OF prone
protection to our industries after the wa
and the keeping within our borders tn
gold that Europe has been spending 4
our markets. We do not need any NOR
OF the precious metal and We could spar
a considerable sum for shipment abroad
but We do not care to leave our vault
open 30 that the foreigners, could hel
themselves at will.
More gold. however. doubtless will
received before the fighting In Europ
comes to an end. although prominer
bankers say that for the presen, q
least the Influx has been checked. Col
coin In circulation In the United State
| shows an increase, as compared with hi
time last year. OF s1i3,l14.6sl and eol
Il certificates In circulation an Increase {
/ $685., ,9OO.530. or a total increase In gol
| In the country. outside OF Federal Trea,
ury holdings. OF s47S,915,2ll.
| There Is more money in the Unite
| States than ever before reported. wit
the per capita circulation on Novembt
II, Sails, against s37.l5 year ag
s37.3l In 1914 and s349O In 1913. 1t
interesting to note that In the twel,
months Federal reserve notes have II
creased more than $4,000. 900 and ths
national bank notes in circulation In III
same time have decreased more tina
S4s.000.000 1t Is no wonder money
easy.
II further reason may be sought Il
the current ease In money rates II ma
. he found In the last report OF the Conn
/. trolier OF the Currency as "f Scpten
!. her l3, showing an increase in con
bined resources OF the national banl
of the country since the June call
I SASS, 100000 and an increase over Sc
tember, 1918. Of s2.144 100000. New
before in tho history Of the Unite
| States have the banks been so stror
az at present. and II to the rcsourc
| Of the national banks those OF the s'a
| banks and trust companies are add
| a staggering total will be disclosed,
: Deposits Of national banks have 4
, creased in the last twelve months mo
than S2,144,O 900, 900, against an increa
in loans Of Sl1O3 900, 900, and the I
IA crease In deposits has been along lin
ID of healthy distribution. A substanti
> reduction Is shown In deposits In ce
Or trail reserve cities. but big increa
er In the holdings Of other reserve citi
ID and in tho country banks thanks to t
s. progressive effect OF the Federal reser
" act in decentral!zing and distribute
n the money of the country.
Local hank Holdings Improve.
Local bank holdings have sho,
J. marked Improvement In the last TO