Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1899-09-07
A SENSITIVE MARKET
Present Effect Upon 1t of the
TrdnSVddI Situation.
Ills Admitted Though That If the
worst Happens, American FInan.
ceS Are So Well Taken Care of
That They Cannot susfer.

tie from last advices. Some hesitation
was produced by the unsettling effect
of the Transvaal difficulties upon the
London market; but as the best opin-
ion inclines to the belief that there
will be no war and that President Kru-
ger will ultimately make concessions.
no serious injury to confidence fol-
lowed. This market is of course SEN
sitive to foreign affairs and must al
ways remain so in these days of close
commercial and financial interdepen-
dence; yet were war to happen be-
tween England and the Transvaal +
would find this country far better able
to take care of it's finances than usual:
and no one anticipates that any flood
of American securities could be return
ed to US. for the simple reason that
the available supply over there has
been so greatly reduced by shipments
| to the United States during the last
two or three years. Any important
declines in London would bring out
eager buying en- this side of the At
| lantic
| The general tone of the local market
continues good. Confidence in a. broad
er and more active market during the
autumn is almost universal. This of
course is based upon the extraordinary
wave of prosperity which extends over
the whole country, and which as yet
shows nc signs of having spent its
force. The iron and kindred industries
are making a wonderful record: our
whole history fails to show a parallel.
Raw materials. such as pig iron. cop
per and tin, show advances from low
est prices of from so to 100 per cent.
Finished products of course show no
such rise; but in many instances price
is a secondary consideration with buy
ers; delivery being the main want.
So far, high prices do not seem to have
checked business, and there has been
a remarkable absence of speculative
buying. Later on these conditions
must check purchases and defer re-
pairs, improvements and new enter
priSes until values recede to a normal
basis; but this stage of affairs has not
yet been reached. Until it approaches
we are not likely to witness any i'm
portant recession in the stock market.
Railroad earnings continue making
satisfactory gains, giving rise to all
sorts of hopes regarding increased
dividends. Some of these are likely to
meet with disappointment; for present
conditions mean increased costs in
unreasonable expectations A little
skepticism regarding dividend rumors
will do no harm. Some of the best rail-
road stocks are held at prices that Of
er slight chances for further profits.
As already intimated in these advices.
however, there are a number of low
priced issues of reorganized properties
which have been more CT less neglect
ed and which must show large apprec-
iation as they approach from a non
dividend to dividend paying basis.
The market is likely to have the
support of big operators for some
weeks to come; and as these return
from summer resorts dealings will be
resumed with greater activity. Com
paratively little attention is being
paid to crop reports. 1t is certain,
however, that we shall have sufficient
wheat and corn for home and foreign
wants; and that our farmers will OBJ
tain reasonably good prices for their
crops. Prosperity is shining upon the |
fields of the west as well as upon the |
mills OF the east
The coming Saturdays bank state
ment is net likely to be a |
good one, nor is there likely |
to be any increases in the
bank reserves during the month of
September, for the reason that it is
the principal crop moving month of
the year. and money, therefore, is
more liable to be drawn from this CEN
ter than returned to it from the va
rious sections of the country What i
will make the bank statement worse
han otherwise is the payment which
was made to the government by the
City bank for the purchase CT the Gus I
ON house, the amount being $685. k
100. The small surplus reserve of the j
'anks at this season of the year, when 1
he natural current is against this (
money center, is of course reason for 5
and should be whole I
ONE check against excessive Duying /
N borrowed money, and this is cal t
ulated to dwarf the business of the /
street" for the next two or three y
yeeks at least. 1 therefore advocate I
uick in-and-out transactions, as tenn
orary higher rates for money may be
sed at any time to force lower prices. Z