The San Francisco call., 1899-12-25
NOT FINANCIAL TWINS.

HE close OF the year Is being marked by
curious clash between speculation and le
gitimate trade The former is languishing and
the latter hourishing Tight money has cinched the
former u groans; the latter has all the money it
wants and is going out OF the old year with flying
oolors.
James r Kecne predicted this state OF affairs weeks
ago He pointed that during the past eighteen
months the increase in new securities through the
consolidation into OF nearly all the independent
manufacturing concerns in the United States
amounted stock issues OF over 500 100000, hall
OF which he estimated as fictitious values. During
this period the increase OF money in circulation in
the country was barely SI4ooooooo, a sum insg
niicant 10 finance this enormous creation OF new
stocks He furthermore said: Think OF this huge
inverted pyramid OF credit with so little money at its
base and You may conclude as do, that the danger
OF Its continued stability overshadows all other CON
siderations In conclusion he expressed no surprise
the decline in Wall street and added that he looked
Tor a further depreciation.
Exactly what he predicted has come TO pass. He
was shrewd enough 10 back his judgment with his
money, and by shorting the market cleaned up
million or a few days ago. II is thought however
that the OF the liquidation is over and graft
foaton is felt that it has been accompanied by so
little financial distress and so few failures While the
and lis spectators 1t has undoubtedly been beneficial
20 the country by giving it object lesson OF the
oolishness of rushing headlong all sorts OF COM
binations at enormous capalizations, many OF them
being topheavy that the first adverse wind they
topple OF their own weight. Philosophers may
also derive comfort in the proof OF their own epigram
that every abuse carries within the germs OF its own
destruction, and that every evil will come to grief if
you give II rope enough.
Thus while Wall street is writhing in the throes Of
It's Jolly. legitimate trade continues to exhibit
volume unparalleled in American history While
there is naturally lull the close OF the year the
present lul is much less marked than usual at this
time OF the year. There even a suspicion OF un-
soundness in any branch OF legitimate business and
some promise greater expansion next year than
this Cotton suffered some from speculation for a
day two, but has since rallied the statistical posi-
ton OF the market being good. Sales OF wool have
dropped of sharply from the cause but prices
still maintained. Hides have weakened off some
what and some kinds OF leather are quieter The
iron trade continues 10 lead all others in point Of
frmness and present combinations have been con-
iinued for another year. Wheat has declined some
what in prices and demand, and the outlook for the
growing crop in foreign countries is reported good
Corn exports are well maintained
The volume OF trade, indicated by the bank clear
ngs shows an increase last year OF 4, per cent
and Omaha was the only city OF importance to ev
hibit loss last week. The failures for the week :,
spite OF the weakness in Wall street were only o7o
against 25S for the same week last wear The.
figures tell the tale. Though overcapitalization and
REORGANIZATION may shake the thrones of Wall
street they are not powerful enough 10 shake tb. 10
pitimate business OF the country at large