Omaha daily bee., 1902-10-13
WALL STREET PAYS PENALTY
Excessive Speculation Leads to LtQui-
dalton which is Costly to
Spectators.

NEW YORK, Oct. 12.-(Special )-Henry
Clews' weekly Wall street letter says:
Wal street is paying the penalty for exi
liquidation upon a very extensive scale mas
been going on for. several weeks, partlcu,
liarly in stocks which had been advanced
by several well known wealthy clques
whose activities had frequently been a SUD-
ject of wonder and criticism. Apparently
these gentlemen had not sufficiently pro-
tected themselves against the fall none
tary stringency. Gail money was sharply
they could not be renewed upon the old
terms or upon the old collateral. Bankers
ment for their funds in the usual crop and
trade demands. and resolutely set them
selves in opposition to continued fostering
of reckless speculation. last New YORK
banks found it to their common interest
to put a check upon the plunging opera
lions which have recently. characterized
they have done none too soon, in a manner
ana with an efficiency that, deserves the
community. New York bankers with their
vast control of credit have a power of re-
straint upon speculative excuses w9lc thd no
breadth OF view apparently convinced them
that their own interests are best conserved
by unttedly acting for public welfare. Had
1t not been for the conservative attitude
Of the banks, stimulated of course by awk-
MISREPRESENTATION, we should no doubt have
run into a whirl OF crazy speculation Whlch
would have ended in premature panic ana
hlcd6ANAs M ~ ~ pAN9NLN 49,
clear the financial atmosphere. and unpleas-
ant consequences, If such occur. will be
into the channels of trade and Industry.
Outlook Not Settled.
The money outlook is by no means set
tied. Much relief has been afforded by the
heavy liquidation I'm stocks, but the tension
=; IS n fSe to ers iss II T ;fg y Greater ES or lsS1 bs aeg Sise
appointed us in not sending gold to build
up our depleted bank reserves. Apparently
have made ample advances to American
borrowers. and that q further extension OF
view of the speculative temper here. Paris,
Berlin and London, all OF which were In a
position to spare a few millions sterling for
titude towards this market and raised the
terms on which we could import more gold
to prohibitive points A few millions have
De quite insufficient to AFFORD any substan"
tiaI relief. Even the treasury after eT-
hausting almost every resource, Is unable
10 give the desired assistance, A forced
contraction in loans is the only remedy.
painful as II may be, for depleted bank re-
serves. According to the last official re-
turns the loans In the $500 national banks
in the United States on September 10 stood
at So, 2S0, 600, 900, an. increase of S26l.OO,0W
over the high figures OF lSOl. During the
same period there were. decreases of 81,
Is. SOO.O 600 in national bank notes. No GNt-
ter reason for drawing In the pursestrings
need to be produced.
hhIiEOaU GaEhAh8A
Railroad earnings continue to show re-
markable gains; partly a result OF heavy
westbound trafic, which usually mma
high freight rates. Net earnings, however,
are frequently not so satisfactory as last
YEAR; the higher cost of materials, the In
creased cost OF operating and the advances
IN wages all making neaVH in5oaas in noP
the only concerns feeling the effects OF
these tendencies. There are other lines Of
enterprise making large earnings IN when
nrohts have reached their zenith for the
time being. The coal strike has become a
depressing factor in the ma Ses NOT sSsrs Sc
as for the important questions lnVolVeo.
The threatening attitude OF labor and the
sharpeninR OF issues between monopolles OF
@apltaI and monopolies of labor are likely
TO have a seriously deterrent effect upon all
settiement of the coal strike Is fortheom-
| ing. The almost certain projection OF THESE
issues into the coming electlon anu tne IN
eVitable raising of a new set OF economic
nroblems with which the country is not yet
prepared TO deal are certain 70 nave a oe-
pn fortmnste mat The country Is still enjoy
ing great commercial and Industrial activ-
ity and that general condiIions are : oT ne1
set of influences are coming INTO pIoml-
hence which will have to be seriously reck-
oned with in business aHairs a. we" as AZ
Improved by Liquidation.
The position of the market as a whole has
unquestionable been greatly improved ps
the LIQUIDATION OF the last rev Weehs. Ihs
test has shown that there are no wear
scots Of Importance, and an effective check
has been put upon undesirable speculative
movements. The present, however, Is no.
favorable to the buying. or stocks. Ins
scarcity of time money as wei as eal
money Is a warning. There Is still a PROB
ABILITY OF further squeezes In the money
market and sharp raids upon weakly neip
stocks. A. great change in existing conai'
tons must come IL we are to have a genu'
Inc bull market during the present year
Sharp upward reactions are not at all un'
iikely, but stocks will probably, be a gooc
sale at such times for several Weeks !.
J about l0Gi5 points, should not be EXTENDED
Buliish enthusiasm has been mueh chllled
ana a period of rest will be necessary 10
regeneration. even under favorable eircum'
stances.
Conee Market.