Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1901-11-12
SpeclaI Letter From Wall Street TO
The "News" on the Outlook
FOREIGN SITUATION BAD.
European Markets In Exceedingly
Sensitive state, Owins 60 We'll
Understood Causes
Special Correspondence.

NFSNih NofrVsponuehNc'
New York, Nov. 9--The stock mar
ket has shown much strength during
the past week, the advance being wen
distributed and well sustained. Inc
chief stimulant was powerful manipu'
iation, based upon progress in the
Northern Pacific deal. Such compile
Gated and wide reaching arrangements
as this particular one cannot be carried
to completion without friction and de-
lay; but II all reports are true, very
substantial progress has been made,
and the negotiations may be announced
as completed at any time. The inter-
ests involved In this transaction are 50
vast and interviewer that ever since
the hitch which developed last spring
there has been q firm belief In the pub
lie mind that the rival interests what.
ever their ambitions and disposition
could not afford 10 permit an open rup7
ture which would have proved 'ruinous
to both sides and created general de-
mor8lizution. Hence the "Streety mas
firmly believed In an eventual settle.
ment Of differences after both sides
had consumed enough time for sklr-
mishing and reflection. OF course The
Intervening. period Of doubt wac ufl-
favorable to bull market and now
that this element Of disturbance Is Likes
ly to disappear, the speculative situaa'
ton viii be correspondingly cleared
and improved. ssss-ssae.s-.
While conditions are less favorable
than q year ago, and there are weak
points that Will bear Watching, yet tho
situation at the moment seems more
favorable to an upward than down.
ward movement. Stocks are still
highly concentrated In strong hands.
ana holders are not willing sellers at
present level No doubt the strongest
incentive to operations for higher
prices Is the prevalence OF general
prosperity From nearly all sections
of the country come reports of contin-
ued good business conditions Even In
the drouth stricken districts business
is better than expected owing to other
| offsets, and no complaints are forth
coming. Bank clearings are phenom-
enally heavy, having for several weeks
exceeded last years heavy totals by Is
| TO 20 per cent and over. Railroads are
often ,overburdened with traffic. and
| earnings continue TO show gains Of 100
| 10 per cent over the handsome gains OF
| last year On almost every side there
| are the most positive evidences OF great
| industrial activity and as yet there are
| no important signs OF cessation. Good
| judges expect the boom In iron to con-
| tinue for some months to come, and
| any recession from present high and
| profitable prices would keep both new
| and old capacity fully employed. The
wooden goods trade. which II rarely
| what Is called prosperous. Is In better
| condition today than for a long period
and so the list could be extended In a
few cases there are indications OF pro-
| duction overtaklng consumption: but
these are exceptional. Prices In general
| are very high. and as In the case Of
iron slight recessions will quickly re-
| vive any abatement In demand. Dun's
| index figure Is now at 97.7. which Is
about the highest Of the last ten years.
II is remark able but true that this high
level OF prices Is entirely due to the
| failure of production to keep pace with
consumption Speculation has had very
| little to do. thus far, with advancing
prices, and II Is questionable II we have
L
| u0us upward movement in values rela-
| lively free Of speculation. as has been
experienced during the last Eve or six
years. The question is, will the pres
ent wave OF prosperity culmlnats in n
speculative outbreak, or viii II recede
in q quiet and orderly fashion? The
latter course IL TO be desired; hut IT
| will be against all previous experience
| trs1 oF,aTttla tive a.
cesses
| At the moment the most unfayorsble
feature In the market is the foreign
situation The European markets are
in an exceedingly sensitive state owing
10 we'll understood causes, and with
another British loan IN prospect Amer
lean stocks are quite likely 10 be sold
for shipment TO the United States In an
advancing market. This Of course
would not be favorable to the foreign
exchanges The cotton movement.
however, has been backward for a
period, and increased exports OF this
staple would tend 10 discourage gold
shipments. The local money market
II not entirely free of danger. bank re-
serves being low and the return Of cur
rencv from the South being tardy ow-
| NIX 10 Tue DdNhWdfN uiVNNhitht VI lilt
cotton crop. Some relief viii be afford =
ed by Secretary Cages offer 10 buy
bonds and by the increase 81 money In
circulation; but the treasury is etll a
disturbing feature, locking up funds
collected by excessive taxation, Con-
sress seems likely TO do little during
the coming session; II could at least
earn the good win OF al parties by
cutting of superfluous taxes. ai
i The market has had q good advance
and Is exposed to setbacks unless FIRM
~ supported by It's present leaders
On all good rallies We advise profit
taking The insiders have stocks TO
sell and the long pull Is not as safe as
year ago. There Will however be
plenty Of money 10 invest after Janu-
l airy ls,; and n bull campaign iy on
the market may be well supported until