The sun., 1902-11-03
THE FINANCIAL SITUATION.

OF strikes or extortionate demands for in.
creased wages by railroad employees and
the market effect Of the result Of the elec-
tions. were the topics chiefly discussed in
Wall Street last week. Joined as the dis.
cussion was with the evident retreat from
their advanced position taken by the West
ern and Waldorf spectators. prices OF
securities became in succession dull heavy
and weak At the close of the six days
trading the market rallied somewhat on
the belief that the possibility of adverse
events o. election day had been exag-
gerated. For the moment the once all
absorbing question of the supply Of money
available for speculation was not raised
because through Government aid the money
market Of Wall Street has been placed in a
position Of at least temporary ease. But
the financial situation remains unchanged
National banks over the country are loaned
up to the full limit of their reserves. Money
continues to be drawn from this centre for
purposes Of legitimate business while the
continual growth of the surplus in the ma :
tional Treasury by reason Of the excess Of
receipts over expenditures and 10y the pay
ment Of Customs duties also conyerges. 20
to speak, in this city, and thus exercises a
local influence over the course Of speculation
that is not felt in other portions Of the land
and for which. Of course, no legal remedy is
possible. II is the belief of all experts in
the foreign exchange market that We will
ship a good deal of gold to Europe in the
next two months. whether from the weak
ened position of the Bank Of France. or a
general desire Of European creditors for
al
mess TO them. or an improvement In busi-
ness on the other side which necessitate
recall of foreign credits for Use in the home
market. All this destroys the foundation
for bull market here for some time 10
come, even IL the contest at the polls to-
morrow is decided in every way as the
financial community would have it, The
chief interest that the financial community v
has in the matter, of course, concerns the
choice OF Congressman The Republicans
do not claim that their present large ma
jority in the lower house Of Congress will
I've wholly retained. but they do expect a
good working ma jority. Such a majority,
il would SEEM should not be less than
twenty, for among the Republican MEM
bers elected there will lie large num-
ber committed to tarif revision and
other specific propositions. so that their
votes cannot be relied upon in the strict
party sense From a Democratic point of
view shrewd politics clearly advises the re-
tention Of the Republican control of the
House of Representatives by narrow
majority This would give tho Republi-
cans the organization of the House and
make them responsible for its acts and for
the entire national policy; yet il would not
allow them to pass single important meas
ure. Any such political revolution as the
elect ion of Democratic Congress would
naturally, agitate Wall Street considerably.
1t would not only be taken a. verdict Of
popular condemnation of that Republican
policy which has been in the main favorable
to corporate enterprise, and a. an indica-
ton Of Democratic success in the next
Presidential contest, but it would mean the
abandonment OF all hopes for any financial
legislation at Washington this winter. In
the Judgment Of some OF the most acute
students of Wall Street affairs that this
generation knows. such financial legislation
must come If present prices for securities
are TO be maintained.
The most important development of the
quarters that halt was at last observable
in the iron and steel industry. The fact
seems to be that while the demand for steel
rails and iron for railroad PURPOSES il still
greater than our mills can supply, and
a. attested by orders ahead, is likely to con-
tinue very large for the greater part Of
next year, there are signs of overproduc-
tion in wire nails, sheet steel steel bars
tubes. and in general what are known as
the higher forms of finished iron and steel
products, Structural iron seems also to he
affected to some extent. From now on the
erection Of huge Office buildings and similar
structures is likely To proceed less rapidly
than in the past The records Of the Build
ing Department of our own city for the
last three months show, indeed, that the
pause in such operations so far a. this COM
muni'y is concerned began some time ago
Shading in price Of the products named has
occurred. and certain mills that have not
known for four years what 1t was to AK for
an order are now soliciting business. The
only reason for what has happened seems
To be the competition of new mills which
have been called into existence by the
prosperity Of the iron and steel business.
III lHt NpTu lht great trouble
AT present is the lack Of locomotives
There are, it is said, freight cars enough
or nearly enough; motive power is what
j. wanted What to do when the big
corn crop begins to move is bother
ing the railroad men Beyond this
embarrassment Of riches il the q,ies.
ton of possible strikes of railroad en-
ployees for higher wages and the inroads
that will be- made upon railroad net earn
ings if these demands, in many instances
most unjust, are granted. Trustworthy
statistics show that by reason of the adj
vance in wages already accorded and the
increased cost Of conducting transporta-
tlon, the value Of railroad properties in
general, adjudged by surplus earnings
and other proper standards, has so de-
creased in the last half of the present year
that it will probably increase but little
for the year as whole. Will the people
stand an advance in railroad freight rates
sufficient to cover a further advance in
wages? u l. urged that higher wages means
more money distributed in purchases of food
and clothing and other articles and that
hence increased freight rates can and i'll
he borne by the community. But the
fallacy of such an argument is obvious
What the community gains 10y such an
arran cement on the one side ii will lose
on the other. No new wealth is created
.f I,,.l