The times. [volume] (Washington [D.C.]) 1897-1901, 1900-03-04
Higher PRICES EXPECTED
New York Stock Operators Look
for a Bull Movement.
The Prevailing Conditions Favor n
General Advance Held in Check
by n Firm Money Market-Inducncc
of the London Board-Enect of Gold
Standard Lava Jump in Cotton.

NEW YORK, March 3.-Henry Clews
| financial review of the week says:
THE Third Avenue disclosures hav,
clouded the stock market for a considerabl,
period So long as uncertainty prevails,
in this quarter and important financial. in
terests were diverted from ordinary affairs
the market was effectually prevented from
responding to natural influences. Now thai
the worst has come out concerning Thirc
Avenue and been amply discounted, sub
stantial conditions are more likely to asser
themselves again.
Apart from this unfortunate circum-
stance, there have been developments of q
favorable nature that must eventually
work out benefcially 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 short 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
btih6 Il pONtl Ahi any VII AhNiA SiNO- Gun
with waning resources and discouraging 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 il
direct. London has been relieved of a
threatening money pressure, the cost Of the
war necessarily being a depressing influ
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 TO 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.
AN 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 a 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 few months, it will
have a still further effect, owing TO the ex-
8 sok
cilitate. There is no need to fear undue
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
12 of / per cent 1t is conservatively esti-
mated that the banknote circulation may
be increased 500 900. 900, 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
500, 000,0 900 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 at the end of the week
Since January / there has been an expan-
sion of about $50 600, 600 in the leans Of the
banks.
General trade conditions continue very
In the iron trade there are
no signs Of abatement in the extraordi-
nary activity which that industry is shar-
ng. On the contrary there are indications !
hat it will continue throughout 1900. and |
many Of the leading concerns are making /
much larger profits, having finished old>l
rlpfc tho 1gtv-nrirn hacfe nd
now working on higher-priced contracts. I
The cotton goods trade is also experiencing /.
/ large and more profitable business. Buy
srs are taking hold with unusual freedom |
md are more anxious about deliveries than I
prices.
Raw cotton took a surprising leap. and |
he better prices now obtained mean many |
additional millions TO the South. The
after section of the country is to be con-
graduated upon a degree of prosperity /
hat has not been witnessed since the war.
railroad earnings continue to demonstrate
n the most emphatic manner the business
ictivity everywhere. According TO the
statements of the Interstate Commission
he increase in gross earnings Of American
ailroads from 1896 to 1899 was ever
305, 900, 600. OF this total $115 900, 0OO
vent in increased expenses and only $780,
90 600 to net earnings. Current earnings
how remarkable gains, 81 roads reporting
n increase of over per cent in the Sec
md week of February.
In the face of such facts it will be
impossible to keep the stock market down
Indefinitely. Some time in the not very
istant future more activity in speculative
perations is inevitable. For the present,
Owever, speculative operations will have
D be conducted with prudence. especially
ntil the future Of the money market is
1ore settled"