Show THE THE HEINZE EPISODE Detailed reports of or the crash in New NewYork NewYork ew York occasioned by the failure of the theOtto theOtto theOtto Otto Heinze firm and the collapse of a corner In Heinze copper stocks show that the difficulty was due to a vicious case of bad fajth faith in stock manipulation and antI the consequent repudiation of or trades In stocks which the Heinze firm had ordered brokers to buy but refused to pay for when delivery was offered Just how serious the bad faith falth Is regarded re regarded regarded by the stock exchange is shown by the suspension for tor one year of or the board member of or the Heinze firm firma a amark mark of or disgrace that few rew men would face race willingly and none can have with without without without out loss of or honor This was war the origin of the demoralization demoralization demoralization In the Heinze stocks and it was followed by the retirement of or F A Heinze from the presidency of or the Mercantile bank an Institution which he had helped to found The reason as assigned assigned assigned signed for his retirement is that his brothers financial affairs will require a good deal of his time and he cannot devote himself to bank business as he should probably another reason Is that the failure of the brokers makes It de desirable desirable desirable to have a change in the banks head since speculative prominence and banking management nowadays do not work well Avell for the bank bankIn bankIn bankIn In any event while the episode has caused considerable excitement in financial circles all over the country Its Us effect will trill be limited largely to the securities associated with name The bank In Butte which closed its doors Is reported solvent and the names of or Its controlling owners Is assurance as assurance assurance that It will pay payout out General commercial finances are not likely to tobe tobe tobe be affected seriously and the breaking of the storm which has been brewing in coppers for months may clear the atmosphere to the benefit of or the whole situation Viewing the trend of the securities market since last March and figuring the enormous depreciation In prices running up Into the billions the won wonder wonder der d r Is that no more failures have been recorded In the stock market In three weeks of this fall the loss In stock market values amounted to three bil billions billions billions lions and yet et the commercial world has reported only two great gre t failures the Pope company and one Independent Iron and steel concern neither of which was unexpected and both of which will ultimately meet a large part if not all of or their liabilities liabilities I ties In manufactures trade trado con conditions conditions everywhere are good and andone andone andone one of the pronounced optimists of the country Is the president of or the National Manufacturers association Traffic on the railroads is still greater than the facilities the cotton crop alone prom promises promIses promises to yield close to wheat has a big yield and Is bringing big prices corn Is going to bring enormous returns in cash Indeed the great crops and the activity In manufactures are in a way responsible for the tightness of money since the banking interests prefer to lend on such security rather than Invest In or lend money on stocks and bonds which have depreciated Bankers are are unanimous In their opinion opinIon opinion ion that the beginning of or crop move movements movements movements ments to the seaboard for export and the resultant Influx of money from abroad will ease the money market within three or four weeks and they believe too that the th liquidation of speculative accounts which has hall been going on for months has hM nearly reached Its J end endon X on An n the tho basis of ot oo present prices sub MnYO stocks st and arid bonds yield a larger rate of Interest to purchasers than they have In years and such a condition is invariably followed by b purchases on the part p of men men who have money for such operations Altogether the th e conditions need occa occasion occasion occasion sion no alarm among men whose opera operations operations operations are along legitimate legitimate lines The speculative movement had reached a speed that was dangerous and putting on the brakes while It jarred some of the men nten who were Involved has been for the safety of every legitimate Inter Interest Interest interest est In business From gambling with borrowed money the average citizen who had caught the mania has come comedown comedown comedown down to substantial earth again the sensation may have been unpleasant for him but It has been a relief to the commercial and financial interests that saw the danger with which the whole country was threatened |