Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1899-01-12
Speculative Spirit R%etuorninu.

Speculative Spirit Reforming.
One of the remarkable conditions of
commercial transactions for several
years past has been the lack of specu-
lative dealing. When the crash of 1898
came many dealers We're caught in
speculations which were based upon
future developments of the market, and
the squeeze which took place at that
time has since made traders and deal
ers wary of Futures but the steady
increase in demand for all products,
the upward tendency of prices and the
confidence felt in the continued pros
perity of the country has gradually re-
stored the speculative fever, and in 1899
promises to be a year of speculation,
not, however, on the colossal scale
which once prevailed in the United
States.
The return of this condition has been
slow. Two years of improving business
conditions have barely started it. But
the indications are that a third year will
not pass without stimulating the desire
to make money quickly by buying cheap
property and selling it at IN advance.
The great activity of trade and industry
during the past year has been based
wholly on the increasing consumption
of all classes of commodities by the peo-
pie, together with the growing export
trade. Even the grain markets have
rested wholly on the basis of supply and
demand until quite recently, though ev-
cry facility exists there for speculation,
on a large or small scale. Within the
past three weeks, however, the specu-
lative fever has spread from Wall street
to the grain and produce exchanges,
and the buying has attained sufficient
volume to advance prices of wheat, corn
and hog prducts materially. The COM
mission men express confidence that the
speculative trade will go on broadening
out, with the result of steadily advanc-
ing prices for staple products.
If speculative buying yields profits in
the grain and provision markets to
match those which have been made in
w di StICSl, opCNulullOI 10 Ilhely "
spread to other departments of trade.
Certainly an suspicious start has been
made, and conditions are favoring and
encouraging a continuation of the spec
ulative buying.
: The Spectator, of course, can create
only a temporary demand for commodi-
!, ties. What he buys, he must sell again
, soon or late. But his purchases have
the effect of diminishing the supply OF
, commodities available for consumers
! and they, therefore, are forced to pay
advancing prices to get what they need
The Spectator holds the surplus, keeps
r it from pressing for sale and makes i
easier for the producer to set his owl
price on the products hat he sells.
After a successful speculative move,
ment has swept through three such i'm
portant markets as those for stocks an(
| grain and hog products, it is likely tt
f spread into other channels. The cotto1
market furnishes an inviting field. TIL
merchant, who has sold vast quantitie:
l of goods in 1898, is likely to buy more
heavily for the coming seasons, antici
! pating that the growing demand viii
l make higher prices. The iron industr,
has gone through the greatest veal oil
record, with almost no advance il
prices. There, also, speculation is likel!
to take held, soon, and there will be {
demand for iron and steel beyond pres
ent needs, in anticipation of highel
prices.
Finally, the wave must reach real es
tate and mines. Profits out of othel
speculation will seek permanent invest
ment in that form. The growing de
mand will make capitalists anxious t.
acquire desirable property to sell late
at an advance, and owners of real es
tate or mining claims will find that the,
can ask and obtain more money fol
their property than they have been will
ing to accept for it.
: The immediate effect of a %speculativ,
element in the conditions of trade ant
higher plane and to stimulate a branch
ing out in all lines of industries. Thi.
change, however, will not come with {
rush. 1t will develop gradually during
the earlier part Of the year and will 40
reach that stage where speculation
will run riot, at all. The experiences OF
the past few years will prevent any dis
astrous finale. The time to make in.
vestments with a certainty of realizing
handsome profits has come, while the
caution which will enter into the spec
ulative element of business will only