The Washington times., 1902-10-27
Philip King Reviews Finan-
cial Situation = General
Business in Magnificent
Condition-Harvests Are
Abundant and Railways
Groaning Under Traffic.
Money Situation in Wall
Street Clouds Picture OF
Prosperity-Available FL
nanoes All Absorbed in
Speculation and Business
and More Needed.

viewing the financial situation, says:
All estimates of the financial situa-
tion at any time in any country must
necessarily be taken from two different
points of view: namely. that of legiti-
mate business and that of speculation.
One is incomplete without the other. and
each is Complementary of the other.
Usually, however, the great mass of
those who speak or think of financial
two bases, both of which are essential
to correctness of Judgment.
The Ordinary View.
The ordinary observer of general busi-
ness affairs, finding them in depress-
ed and disturbed state, for instance, is
apt TO conclude that the financial situ-
alton is very bad, and that the last
thing for him to do is to make invest
ments or engage in business enter
prise; yet careful study, simultane-
ously. of speculative conditions might
show him that the bargain counter both
of securities and regular business open
ings presented the opportunities of a
lifetime.
The diverse proposition may also be.
true General business may be in the
most buoyant state imaginable, but that
may be no Justification for buying stocks
in Wall Street. Technical conditions may
exist in the latter district that make
a purchase of almost anything there
iredvisable.
A great crash or a great boom may
come in either one of the two halves
OF the financial world, and the other
half be comparatively unaffected by it;
sometimes because it has already dis
counted the event, and sometimes be-
cause circumstances have rendered it
impervious for the time being to what
happens outside of its own particular
existence.
Conditions of Business.
What. then, is the condition of general
business in this country today? There
is no doubt that 1t is simply magnificent;
more than that, that it looks as if ii
would continue so for at least another
year.
The wealth of country is often said
10 consist in what comes out of the
ground. and If this is so, the abundant
returns of the seasons harvest and the
good prices that will be obtained for the
crops speak eloquently of national
prosperity, and. al least, of agricultural
good fortune. The bed of every railroad
sf si. lar < uro ming nndCr The weight
OF freight and passenger traffic, while
the managers of these railway systems
complain bitterly that, despite all the
great renewals of equipment recently
made, they still lack cars and general
facilities TO accommodate the business
that offers
Bank clearings. the best statistical
evidences, are steadily averaging rs per
cent above those of last year. Judged
by this standard alone, the financial sit
uation in this country was never better.
The Picture Clouded.
But how is the same regarded from
the point of observation of Wall Street.
the financial capital of the country,
where money itself is the article that
is bought and sold, and all the trading
and bargaining in all the States and
cities comes at last for balance and set
tlement9 1t must be confessed that
something is revealed here which clouds
the picture previously seen, or at least |
alters it's coloring.
That something is matter which may |
not prove permanent. but for the mo-
ment it exists and IL is this: The fact |
that the demands of business and specu- |
har nj iph h. |
sorbed the floating supply of money in |
the country. have borrowed money to
pretty nearly the credit limit in foreign |
lands, and now. vitality in need OF more |
money, are beginning 10 quarrel with |
each other for the possession OF funds |
that each has already taken.
If the dispute continues, there is no |
doubt. of course. as to which party to 1t |
will be victorious. The hands of business |
are those of the stronger brother. and |
speculation will have to turn out of its
pockets what ii had previously placed
there.
More Money Needed.
The one indubitable fact. or al least
what seems to be an indubitable fact.
to many competent students and OBJ
servers of financial matters is that spec
ulatlOn ana DuslntSS lh inns Guilty cdu-
not both go on at their present pace
until greater quantity of money is
made available for their use.
Meanwhile. with money at the high
rates and at a season when imports OF
gold TO pay for foreign purchases of our
grain and cotton are natural. exports OF
gold, due to the pressing demands of our
foreign creditors for payment. are i'm
pending.
II is said that the present financial
strain is partly due 10 the harvest sea-
son, and thai il will probably ease some
what after the first of next year. All
authorities. however, agree
that the westward drain of money this
fall is not so much to move the crops"
as to conduct general Western business.
and may therefore not return as speed
fly as expected.
Where the Money Is to Come From.
Where. then. is the money to come
from for further great bulge in busi-
ness and speculative credits?
AS has been stated it is clear enough
that the high prices of our commodi-
ties have checked foreign purchases of
them. II foreigners would buy our Sc /