The times. [volume] (Washington [D.C.]) 1897-1901, 1900-03-04

NEW YORK, March 3.-Henry Clews
financial review of the week says:
THE Third Avenue disclosures have
clouded the stock market Tor considerable
period. So long as uncertainty prevailed
in this quarter and important financial. in
terests were diverted from ordinary affairs
the market was effectually prevented from
responding to natural influences. Now that
the worst has come out concerning Third
Avenue and been amply discounted, sub
stantial conditions are more likely to assert
themselves again.
Apart from this unfortunate circum-
stance, there have been developments of a
favorable nature that must eventually
work out beneicially to values. First in
Importance is the turn of the tide in favor
of British arms in South Africa. Both
Kimberley and Ladysmith have been re-
lieved in a surprisingly shor. space of time
as soon as the British Army really fitted
itself for the task. This is the beginning
of the end; for. while The Beers may be
expected to prolong their resistance, nature
being a powerful ally GU their side, still,
with waning resources and tiscouraging re-
suits on the one side, compared with un-
limited resources and success on the other,
there is nothing but sheer stubbornness
on which the Beers can continue the strug-
gle. If Dom Paul exercises his usual
shrewdness, he will make an early peace
to secure better terms than are likely if
he waits for the fall of Pretoria
THE effect Of British military success
on these markets will, of course, be in
direct. London has been relieved of
threatening money pressure, the cost of the
war necessarily being depressing infiu-
ence upon the security markets. With
diminution of the prospective pressure on
the London money market, confidence
should revive and enlarged buying follow.
London is less likely 10 draw upon New
York for funds. and there is a correspond
ing sense of relief here. 1t is not at all
improbable that If the war should come TO
an early close London would become free
buyer of American securities.
IAN advance movement in this market is
held in check by the prospect of firm
money for the next three or four weeks,
and the indisposition of the big holders to
pull together on the long side. There is
no question whatever but that the heavy
operators are bulls for long pull; but for
various reasons, such as the troubles in the
traction and gas stocks, they are not a
unit; hence the market fails to respond to
the many favorable conditions which are
cropping to the surface almost daily. For
the present the new gold standard law has
little effect, because its enactment has been
a foregone conclusion for months Later
on, possibly within a few months, it will
have still further effect, owing to the ex-
pansion of the currency, which it will IA
cilitate. There is no need to fear undue
imitation. BY allowing the banks TO issue
circulation up to the par value of the new
2 per cent bonds and reducing the tax on
circulation from l per cent per annum 10
IL of l per cent, 1t is conservatively esti-
mated that the banknote circulation may
be increased 500. 100000 and possibly
more. This is an important addition, and
is likely to be much needed next autumn,
when the usual crop demands set in. An
other excellent feature of the new bill is
the raising of the Treasury reserve from
s100, 5000 TO $4,000, 600 gold, together
with additional measures OF protection for
the same. The Treasury is still taking
funds from the banks, and in view of the
large borrowing demands for legitimate
trade purposes, an unfavOrable statement
is anticipated al the end of the week.
Since January l there has been an expan-
sion of about $60, 900 900 in the leans of the
associated banks.
General trade conditions continue very
satisfactory. In the iron trade there are
no signs of abatement in the eXtraordi-
nary activity which that industry is shar
ing. On the contrary, there are indications
that it will continue throughout 1900 and
many of the leading concerns are making
much larger profits, having finished old
contracts on the low-price basis and are
now working on higher priced contracts.
The cotton goods trade is also experiencing
a large and more profitable business. Buy
ers are taking hold with unusual freedom,
and are more anxious about deliveries than
prices.
Raw cotton took a surprising leap and
the better prices now obtained mean many
additional millions TO the South The
latter section of the country is to be con-
graduated upon a degree of prosperity
that has not been witnessed since the war. |
in the most emphatic manner the business
activity everywhere. According to the |
statements of the Interstate Commission
the increase in gross earnings of American |
railroads from 1896 to 1899 was ever
1905, 000,0 900. OF this total Sis, 900, 900 |
went in increased expenses and only $780, |
BOO, 600 TO net earnings. Current earnings |
show remarkable gains, 81 roads reporting |
an increase of over 3 per cent in he sec |
ond week of February
I'm the face of such facts it will be |
impossible to keep the stock market down |
Some time in the not very |
Instant future more activity in speculative |
operations is inevitable. For the present,
however, speculative operations wills have
% be conducted with prudence, especially |
until the future of the money market is
more settled.