The Wichita daily eagle., 1900-06-06
Che aaita Daily gaale aednesau aornirs anue s. 1900

ness may be experienced until trade set
ties into more normal conditions, but this
Will be only temporary. Merchandise val
ues have already receded considerably
from high water mark, and they can
| not decline much further without bringing
| in a new set of orders which have been
held back for Just such an opportunity.
/ 1t is this 'held-back' business upon which
We can confidently predicate & condnu-
! ance activity under more stable condi-
tons than existed six motnhs ago. Credit
has not been unduly expanded; overpro-
duction os not yet in sight, and there IS
no visible check TO new enterprises. The
trust mania is over, and speculation has
not been pushed to the danger point An
important factor in our favor is the won
derful increase in the foreign demand for
American manufactures which is bound
to continue and play an important part
in our foreign, trade returns. as well as
an unlimited outlet for American skill
and enterprise.
1.-THE stock market, though dull, shows
unusually good resisting qualities. Two
important failures have recently occurred,
causing, however, scarcely a ripple on
the stock exchange. The fact is SO few
stocks are held in weak hands that there
is little opportunity for liquidation, either
forced or natural. Short selling only
seems to furnish fresh basis for the ral-
lies seen from day to day, and, while the
market displays no pronounced tenden-
cies, it is quite plain that efforts for the
decline promise little success. Strong in
terests which do not intend to permit
any important reaction are still under
the market, even If they do not consider
the present an opportune period for start
ing a vigorous bull movement. The lat
ter can hardly be expected at the present
time. There is a general disposition TO
wait until the presidential nominations
are made; nor is it likely that there will
Zoe any bold buying Of stocks until the
crop outlook is more certain. The rail-
roads are doing large traffic and make
splendid comparisons in gross earnings;
but 1t must not be overlooked that ex-
penses have greatly increased and net
earnings cannot be expected to show the
same ratio OF increase as gross. This ex-
pense ratio is a perplexing problem for
railroad managers and one that VIII have
to be calculated upon in figuring dividend
returns.
1.-The money market continues in con-
ditions favorable to operations for a rise.
Bank reserves are increasing. There is
less prospect Of the treasury injuriously
absorbing funds, and the special demands
for accommodation which resulted from
financing the big trusts ond consultations
last year will not be a factor this sum-
mer or the coming fall. The demands
from commercial borrowers may show
some increase later on, but the monetary
outlook in general for continued ease, es-
pecially since the close Of the African
war, removes one Of the chief incentives
for gold exports. Balancing the various
conditions for and against the market,
we are inclined to take a favorable view
Of the future. Some stocks may show
occasional temporary weakness. but good |
securities will prove purchase on all de- |
cided reactions. Two important disturb |
ances, the Gas and Sugar wars, are out |
Of the way, and this viii remove what |
have been serous obstacles to a better |
market"