Evening journal., 1900-07-02
| STOCK MARKET
WAS UNSETTLED
'W
Democratic Convention Dark
ems Favorable Prospects
CROP SITUATION DISCOURAGING
Easy Money, July Disbursements and
improvements in Chinese
Affairs Necessary
CROP SITUATION DISCOURAGTNG
Special to the Evening journal


last week. On Monday an Tuesday the
bears made a successful demonstration
which forced considerable liquidation
and a sharp decline in values. This
was followed by a good rally, chiefly
the result of short covering, after
which the market settled down into al
state Of comparative apathy pending
future developments.
There are a number Of favorable fac
tors in the situation, such as easy
money, good railroad earnings, and
unusually large July disbursements;
but for the time being these are entire
. ly overshadowed by the approach Of
the Kansas City Convention, unfavor-
able crops reports, the Chinese distur-
Dances and the diminished activity Of
business. Evidences multiply that
trade and industry are reacting after
the phenomenal rush of 1899; that
prices have weakened as a result Of
! supply overtaking demand, and that
buyers in consequence are holding aloof
until convinced that bedrock has again
been touched. The turn was first OBJ
served in iron, and made conspicuous
by Mr. Gates somewhat unusual but
very correct statements about overpro-
duction, high prices, etc. Since then,
\ iron and steel prices have been stead
ily shrinking; taking along with them
the securities of the iron and steel com
panies, which will not be able to show
such handsome profits in the current
. year as in the previous one. This pro-
cess OF readjustment does not yet ap-
I pear complete; for, while the lower
range Of values is certain to bring in
a batch Of new orders which have been
. held back for just such opportunities.
still the iron and steel managers find
K themselves in a perplexing position,
With high priced raw materials and the
idvances in wages to contend against
should the present conditions continue
cry long, concessions would have to be
ought in these latter directions to com
.ensate for diminished profits. The
steel companies already find it impOs-
sible to meet any further demands from
labor; and on July 1 a good many shut
downs will occur, partly to overhaul
plants. but very largely to check over
production The cotton trade is in a
very similar position to iron. Prices
OF finished goods are steadily declining;
print cloths in Fall River having
dropped from 3is cents to 27s cents
for standards, with no buyers at the
decline, and rumors of a weeks shut
down. Highpriced cotton and low
priced goods do not conduce to happi-
4 ness among cotton manufacturers. and
some time must elapse before the read
justment process is complete. Reports
4 from the interior indicate that all kinds
Of goods are going steadily into con-
N sumption, and that no cessation OF de-
M mand in that quarter is in prospect
a Bat manufacturers and merchants who
have overestimated future requirement:
under the stimulus Of last years boom
will have to contain themselves in pa.
thence for a period, until the norma
balance of production and consumption
is restored In a few months. at tn,
most our markets ought to again be il
Z healthy condition. Lower prices vii
uietly check excessive output; and W,
nay confidently look forward to a NOR,
moderate and more permanent perio,
OF prosperity than the intoxicating ex
periences of 1899.
This is an age of gigantic combina
a tons. We have experienced it in con
III nection with railroads and more re
Gently on larger scale still in the for
nation of industrials, the amount o
which during the past year has exceed
ed S5,000,000. 600. All other combina
tions, however, are far outdistanre,
for vastness and uniqueness by thecom
hination just formed of all the leadinl
nations of the world against China
the most populous nation on earth. Al
an evidence Of this, the following fg
ures are convincing, showing the popu
lation Of the various countries nov
united with this common object: Unite,
States 10000 600; Germany, 52.000.O00
France, 3S,000,0 900; ENGLAND, 10000 600
Russia, $4,000 900; Japan, $4,000 900
total $4,000 000 versus 400 1000 90
Chinese. a successful termination O
THIS novel warfare it is hoped will caus
lasting union of friendship between al
great powers and thereby do ava
IN any further apprehension O
ituro clashing Of arms between them
his would indeed be the millennium
The crop situation is not wholly sat
factory. Prolonged drouth is reporte
the northern sections of the Sprin
wheat section. while the Southeastern
lart Of the country has suffered from
tNANf'aiAfh NtAAtA"F t1tAllt uNiniuF Ol nDIln
wheat no serious damage has been done
and the outlook in spite Of such damag
is for ample crops in all the staple.
It Is altogether too soon to take pessi
mistic views Of the harvest. which /
weeks of. and just as likely to be fav
ored with good conditions the remain
der Of the season as with bad or in
different conditions The next thin
f7 be resdinsied IS the weather TIL
nrcsc~t ciord overhanging Wall stree
tcn ouch rp'n in the cotton coun
tv s~d tod little in the Spring whea
r,f rcrrc cciton and wheat have ha
kan ;mwrnse advance. while stock a
natural sequence. have had a hi
hurn the other way. II the rains in tn
l-outh will stoD and break out in tn
lNc~thv-e~t the situation will 500
lhisht itsaif-then healthy reaction
hin r~eeedilv follow wheat ard col
On viii recede and stocks turn urwaF