The Savannah morning news. (Savannah, Ga.) 1900-current, 1901-10-28

investor of ordinary prudence thinks
that prices are still at a high level;
and. that the slight reaction from The
| boom of last spring. while it may not
| justify any bear movement, is certain
ly not a bull argument. 1t should be
borne in mind, however, that the pres
ent situation is very unusual one
| and cannot be measured by usual
standards. There has been reaction in
! certain sections and in certain indus
| tries from causes too familiar to call
for repetit!on; on the other hand, there
| are sections of the country and partic-
ular industries which are just feeling
the full effect of the wave of prosper
| ity; so that while it may be receding
| at some points 1t is still progressing at
| others. causing a confusion of results
out of which it is not easy to form
confident opinions.
The chief indications of recession
have been in the smaller profits of the
! industrials, the losses here and there
| in our export trade, and the damage to
| crops from drought. On the other hand.
| the leading industries continue exceed
| ingly active and old and new establish
| ments are running to their full ca
pacity. The enormous consumptive de-
mand for products of all kinds sur
passes the expectations of the most
experienced merchants and manufac-
turers and affords the most striking
| testimony of the soundness and sub
stantial character of the country's
! growth. This is especially true of iron
| and coal, the use of which is dependent
upon the activity of other lines of in
| dustry. There are no signs of reaction
in these markets; and it is evident that
slight concessions in values would
| bring out "a new lot of orders that are
being held back to just such a con-
| tingency. The agricultural situation is
undoubtedly the most unfavorable fac
tor observable, but the harm there is
confined 60 spots, and has many Off
sets, so that the injury will be much
less than anticipated in July last.
| Farmers are generally prosperous ana
out of debt and we'll able to meet their
| losses. Briefly stated, then the agri-
cultural, industrial and commercial sit
uation while not so brilliant as year
| ago, is sound and satisfactory; and. in
| these directions no very strong bear
| arguments can be found.
There being nothing outside of the
market to influence speculation, prices
must naturally be controlled by move
| ments more closely connected with
Wall street. This is precisely the case
| in the stock market at present. Out
| side affairs have been about discount
ed and railroad stocks are still chiefly
dominated by the progress or delay in
the community of interest plans. The
hitch which developed out of the riv-
airy of two big interests to secure Bur-
lington and Quincy was chiefly re-
sponsible for the abrupt termination
of the bull market last spring. 1t IS
quite apparent now that the spectacu-
lar demonstrations in Northern Pa
cific last summer had probably more
to do with recent declines than the
corn crop failure, President McKin-
ley'S death, or fears of stringent mon
ey. 1t follows then that the market is
still largely influenced by this trans
action. and that any solution of the
present tangle will afford a very de-
cided relief and stimulate renewed
manipulation for higher prices. The in
| dications are that as soon as this ques-
| ton is settled the movement towards
Capitalization of railroad management
| will receive a fresh impetus, and the
effect of this upon values it is too early
to determine There is no gainsaying
| the advantages of this movement so
far; not merely to the owners of secur-
tiles but to shippers and passengers
| alike who receive the benefits
| of uniform rates and bet
ter and quicker service. So
| long as rates are not pushed too high
| 1T seems likely that the railroads will
| not meet with any severe public crit
| icism. One step in consolidation forces
| another, and the movement is not like
| ly to cease until all the large systems
| have control of the territory they are
| best fitted to serve. While negotiations
| Of such vastness and intricacy are I'M
| der way we may expect all sorts of
| rumors, favorable and unfavora BILE,
and when completed these plans will
| undoubtedly add to the stability and
| value of good railroad properties; but
| in the interim we may experience wide
| fluctuations and more or less friction
| as rival interests play for position.
| This may tend to increased activity
| in the market and renewed speculation.
| It is we'll known that big men are car
| rying large amounts of stocks which
they are unwilling to part with at
| present prices and their interests lie in
the direction of higher prices. The
money market is almost past the dam
| ger line, as in a few weeks funds with
d~aw for crop purposes will begin to
| return. The situation abroad is unfa-
| vorahle and the prospect of gold ini-
ports is somewhat remote: but the
| United States is in such strong &C.
sition financially and commercially as
TO be only slightly Influenced by
| foreign affairs at the moment. While
| the present strong undertone continues
we expect to see a good trading mar
ket, but prudence suggests the taking
| of profits on all good rallies.