Omaha daily bee., 1902-04-22
SPECULATION ON INCREASE
Prospective Improvement in Monetary Con-
ditions One Of Causes,
REPEAL OF THE WAR TAX ALSO HELPS OUT
Developments show tina Morgan H. In
Complete Control of the Louis
Vile a Nashville
situation.

NEW YORK. April 21.-(special)-Henr
Clews, head OF the banking house of Henry
Clews & Co, in his weekly review Of the
conditions in Wall street, says:
There has been a decided increase IN
speculative activity during the last two
weeks. This could not be entirely attributed
to the Louisville s. Nashville Incident,
though that may have been a stimulating
factor. The principal cause has been the
prospective Improvement in monetary con-
just now, but the turning point has been
reached; currency will soon return from the
interior with increasing freedom, relieving
stringency for several months to come.
Very likely the money market will now
crop movement begins; assuming of course
that no seriously untoward events occur
during the next three months. The effect
of the recent Russian and British loans
upon the International financial markets
can be fairly measured. The former is not
q factor of Importance. the latter will be
Issued so gradually as not to produce any
material disturbance. Possibly at a later
date we may export fair amounts Of gold
ments in %consols, but in view of our large
supply. of gold and the increasing produc-
essiiness n Tb sa apnro en6Sb meg M 6sa cause mo mo uI-
tion of gold in that quarter, and so tend
worlds money markets thus being in an
easier condition than for some time past.
War Tax Repeal Helps.
A very important event from the Ameri-
can point of view was the repeal of the
war tax bill imposed at the outbreak of the
war with Spain. The repeal of superhuous
taxes will of course check the congestion
of funds in the treasury, which had been
war closed. The only efectual means
hitherto of releasing funds withdrawn un-
necessarily by taxation was by the pur-
chase of bonds; a most Objectionable
method, because 1t constantly diminished
the basis of national bank circulation, and
40 forced a flnrfhnr ma cont
Of the currency, to say nothing of the
folly Of the government paying unneces-
sarily high prices for its own bonds. The
repeal of the war taxes, therefore, removes
a serious element of disturbance, which had
1t been allowed to continue would sooner
or later have involved the country in fresh
financial spasms. The avoidance of such a
contingency is a distinct aid to confidence.
Morgan in Complete Control.
The Louisville & Nashville episode has
developed another very important fact;
troll Of that system. With masterful sa-
gacity he has evidently measured the posi-
bilities of. further contests for control in
the spread of the concentration movement,
and with admirable tact has accomplished
his purpose without dangerous friction.
the struggle for control of Northern Pass
cihc there was naturally very serious APP
prehensions of trouble by those who best
tests and the possibilities of their repeti-
ton. The removal of this danger has i'm
mtdsuId Dly SlTenBIntneQ the financial Sltud-
ton and invited renewed activity. These
two factors then-the improved monetary
condition and the passing of Louisville &
Nashville under Morgan control-seem to
have been the signals for a revival of
speculative activity, which promises TO con-
tinue for some time to come. Many of the
big leaders have returned from their south
ern trips; the large holders are known to
be faVoring, an upward movement; there
is ar excellent demand for desirable in
vestments, which are scarce and firmly
held; trade conditions are good; railroad
prosperity appears unchecked, and so far
crop conditions are satisfactory. When the
Boer war is over and the waste of about
$500, 900. 900 yearly stopped, this country will
10000 men, a large portion of whom will
be released for productive employment,
possibly in South Africa. Under such con-
ditions 1t is not surprising that some of
the restless spirits who have acquired large
wealth may wish to distinguish themselves
ators may not approve of all their actions,
but they are not likely to do otherwise
than quietly encourage an upward move
ment in the market in spite of the high
level of prices.
Anticipate Active Market.
For such reasons I anticipate a much
are likely to occur because the situation is
not as satisfactory as a year ago and real
izations must follow; yet there are present
all the elements necessary to active speCu-
,ation, In which the railroads are entitled
to a decided preference. The industrials
should be left severely alone. A keen out
look must be kept upon the crop situation.
A good harvest would insure another year
OF general prosperity. A partial failure
would produce upwelcome results.