Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-06-11
Indifference Replaces Keen In
terest Usually Manifested
Toward Nominations.
MOTOR STOCKS VEHICLE
OF SPECULATIVE CRAZE
Bankers Applying Brakes by Mark
ing Down Loan Values on Ger
tain Active Shares.

NEW YORK, June 1o.--The attention
of Wall street was divided this week
between the rapid developments in the
motor industry and the great political
conclave at Chicago.
In recent weeks there has been a
decided change in the sentiment Of
some of the leaders of the financial
district with respect to politics. politi-
cal leaders and party candidates. and
the time for the actual selection of the
leaders in the 1916 political race ap-
preached. There is no concealing the
fact that much dissatisfaction has been
expressed by business and financial in
terests over what they choose to con-
slider the weak and vacillating do
nestle and foreign policy of the pres
ent administration. and that a new
leader of whatever political stripe, SO
long as he gave assurance of ordinary
business sanity. would be acceptable
and receive hearty support. few
York Stock Exchange showed an over
whelming sentiment against the nomi-
nation of Col Roosevelt, but in recent
weeks this sentiment has undergone a
CHdnBe, ana w all street
surprised to read an official statement
from the head of the biggest bank in
America advocating the nomination
OF the gallant war horse from Oyster
Bay
Wall Street and the Candidates.
Wall Streets position in the matter
of presidential candidates and the fac
tors that determine their acceptance
or rejection are largely determined by
the process of elimination and appear
quite largely in the negative and not
in the positive column. There is never
the slightest hint or suggestion of a
"favorite son." 1t is not a question
as to what candidate is the most pre-
ferred. but rather as to which may
with safety be the least feared Ex-
pressed in other terms. 1t is the old
story of choice between two evils,
since antagonism to Wall street and
big interests" whether genuine or
prime political capital.
Willis political conventions are sup
posed to determine and give publicity
to the issues that shall govern the
policies of the candidates really count
for more than the platforms adopted
at these quadrennial powwows Men
in the heat Of the political tight are
quite Ape " uleTesard the formal in
structions Of their cohorts and to
rely upon their own personal inter-
probation of the issues at stake. In
many instances sacrificing a point here
and there in the wild scramble for
votes.
Motor Stocks as Speculations.
What the war stocks provided by
way of speculative craze during the
greater part of last year is now being
furnished by the motor stocks.
Rumors and reports and exaggerations
concerning profits and mergers and
thick and fast that a wild speculation
in the motor issues has almost COM
pletely absorbed the attention of the
market: and the rapid rate at which
quotations have been mounting sky
ward suggests to some people repeti.
ton of the hasco that attended some
Of the war babies in their introduce
ton to the market. Automobile mer-
gers and combinations involving
colossal figures. and enlisting the ac-
projected ands dissolved with lightning
rapidity. Some of the proposed con-
solicitations include companies on the
shares or properties of which no ap-
lators have therefore been absorbing
stocks of which they have no reliable
gauge of intrinsic value. 1t IL quite
apparent that some of these stocks are
being pushed to the limit by various
operating pools. the object being to dis
tribute them as widely as possible.
The bankers have very wisely ap-
piled the brakes wherever possible by
severely marking down the loan values
on issues that have SO recently acquired
their high position in the investment
list. The condition Is much the same
as that In the loan market on war
stocks at the height Of the speculation
in these shares last fall.
BY the same token. q note Of warn
Ing has been sounded by many of the
brokerage houses themselves, and an
Of unusually large margins for pur-
chase. Investment houses which were
interested In some OF the new COM
panisS have hssn stsadily advising