The Washington times., 1902-10-26
RUSHING METHODS GIVE
WAY TO CONSERVATISM
Henry Clews Says Dealings
Were Professional
FEARS DECLINING PROFITS
Increased Cost of Raw Materials Has
Telling Effect on Markets, Home
and Foreign.
FEARS DECLINING PROFITS

NEW YORK. Oct. 25.-values on the
stock exchange continue to exhibit a
sagging tendency in spite of occasional
efforts to rush them upward. The lat
tier operations have not been signally
successful. conservative interests con-
tinuing TO show decided opposition to all
such manipulation. Dealings were con-
seouently largely of professional ma
ture. What the early future will bring
forth it is difficult to determine. The
materials for an active bull market are
still wanting.
With anxiety concerning the strike
and the monetary outlook removed, the
list of stimulating features ends. 1t is
true that general business continues ac-
tive and large in volume, with no pros
fpect of immediate diminution. But a
kstriking feature of business today in
NEARLY all lines is declining profits. AS
kalready shown in these advices, net
Eprofits for both industrials and railroads
fare beginning to shrink owing to in
tcreased cost of raw materials and labor.
Suggest Prosperity Reaction.
/! Should this tendency continue it
tmears a curtailment in the purchasing
powers of the wealthy classes, which in
rturn will reduce the consumption of
Perhaps this tendency is only temporary.
and such it is hoped will be the case.
but there are only too many sugges
tions strengthening the impression that
a partial reaction from the high tide
of prosperity is now upon us.
Not the least indication has been the
unfavorable turn in our foreign trade
during the past year. High prices here
have greatly stimulated imports and
checked exports, the result being to
greatly diminish the favorable balance
lof trade which existed two years ago,
and render possible the talk of gold ex-
ports, which now tends to make Wall
Street hesitate, not so much from the
actual as from the moral effect of our
being compelled to ship gold when the
banks are endeavoring to strengthen
their resources.
Looks Into the Future.
Exports of wheat, corn, and cotton are
all impeded at present by the fact that
American holders demand prices that
European buyers will not pay, and even
extraordinarily low outward freights are
not sufficient to move these products
from our seaboard with desired freedom.
Other evidences of a reactionary ten
dency could be cited. but enough have
been presented to warrant a conserva-
tive attitude toward the future until some
sort of readjustment has taken place
which will encourage fresh forward
movement
Such a change is hardly likely to ap-
pear for some weeks, perhaps not until
the new year is close at hand or fairly
begun. Two months ago gold imports
were anticipated; now gold exports seem
equally probable. The explanation of
This change is. of course. partly due to
the changed attitude Of European bank
ers. AT both Paris and Berlin there has
been an unexpected financial strain; and
added TO this there has also unquestien-
ably been growing distrust of Ameri-
can speculative methods, that would
have sooner become more marked except
for the confidence induced by our con-
finued material prosperity.
Effect of Treasury Move.
The large amounts of money set free
through Secretary Shaw's efforts, !
amounting probably to nearly 100000 |
900, have inevitably brought us nearer to |
gold shipments, through temporarily re-
lieving the monetary pressure at this |
point. 1t is about time that these dis |
bursements made their appearance in a |
more favorable bank statement; though |
1t is to be remembered that a large por-
ton of these funds were released at in
terror points, thus affording indirect re-
lief here by anticipating future de-
mands.
In any event firm money is likely to
last into the new year. A campaign is
on, which may easily develop some un-
pleasant surprises, considering the pres
ent state of public unrest, and until the
financial, political and business pros
poets become more settled and more ia
we cannot confidently look fo-
a buoyant market.
HENRY CLEWS.