Omaha daily bee., 1902-11-17
DECLINE IN STOCKS
General Business in No Way Injured by the
Flutter in Wall Street.
GOOD CROPS PREVENT SERIOUS CRASH
Reaction Has brought Market Nearer
TO Line of safety and Provided n
Check for Reckless
Spectators.

NEW YORK, Nov. 16.-(SpecialD-Henry
Clews, in his weekly market letter, SAYS:
Continued lquldation has somewhat i'm
proved STOCK market conditions. Prices
have undergone a very remarkable decline
compared with the highest of the last two
years. Many of the active railroad stocks
are now selling 10 to 70 points below top
ngures, and not a few have dropped %
TO 30 points or more. The industriais show
sun greater losses. 1t is a source of sub
stautial satisfaction that this very severe
contraction has been effected without seri-
Gus disaster and without imposing any
check upon the nations industrial and
commercial activities. The latter are APP
parently going along at an uninterrupted
pace, and the extreme spirit of conserya-
tism which has seized upon Wall street
does not yet seem to have spread else
where. Such sharp declines, however, as
those referred to above cannot continue
indefinitely without Interruption. for as
values recede toward the normal the mar
ket becomes more easily oversold, and the
Inducements for buying CORRESPONDENCE
Increase. The Improvement in the situation
has not been entirely confined to the stock
market, considerable relief is observed in
bank reserves are rising as a result of the
forced contraction in loans. Bankers have
at last turned a sharp corner in the matter
OF credits and scant consideration is now
given projects that two months ago would
have been taken VI with avidity. For this
change OF attitude, which came none too
soon, our bank officers deserve full credit,
and the indications are that there will be
no reversal of this spirit of caution for
~ - 80 iNAAs hAAH AAdN
we have probably escaped a serious crisis
through nothing but good luck, or, in other
words, through a good harvest. Had the
crops been a failure it Is unpleasant to
think what might have happened. with so
many huge commitments hanging over the
market at a time of uncomfortable financial
stringency.
Need for Conservation.
While the reaction has brought us back
nearer to the point of safety, ii does not
follow by any means that danger is passed.
ON the contrary, there are very excellent
reasons for continued conservatism. The
money market is by no means yet in a
strong position in spite of the increase I'm
reserves, for trade activity in the interior
is likely to make THE return currency move
ment fully six weeks later than usual, and
the relief intended by Secretary Shaw's
ing largely defeated by continued heavy
treasury absorptions through customs pay
ments, while gold exports stare us in the
face as soon as interest rates decline. Add
to these circumstance the fact that i'm
mense sums are still locked up in syndicate
operations, therefore we have very plain
mediate Improvement in the money market.
Either the supply of funds must be in
creased, which is impossible under our pres
ent inadequate currency system. or the
demand must decrease, which seems UNI
likely, or there must be further %contrac-
ton and liquidation until the country's saw
ings provide a fresh supply of capital with
which to carry out present obligations. At
present 1t Is a simple proposition of having
ASth UP ANt lAd supply VI llOdAlilE
capital and time and retrenchment being
necessary for it's restoration.
General Situation satisfactory.
Outside OF the money market the situation
is fairly satisfactory. There is little oc-
casion for concern beyond the fact that
and declining profits are GER
tainly becoming more numerous. There is
no doubt but that the crest of prosperity's
wave has been passed and a partial re-
action is on. although the volume of bust
ness seems large when measured in dollars.
When quantities are used for comparisons
the results are not so gratifying. 1t is
most unfortunate that the future should
be clouded by the threatened prospect of
labor troubles. Should these become more
aggravated they might easily impose a
serious strain upon our already overloaded
ceived many concessions in shorter hours
and higher wages during the last few years,
and a much larger share of corporation
earnings has gone to labor in making i'm
provements than to stockholders in the
form of increased dividends. The dis
astrous effects Of the late coal strike have
of high-priced fuel will shortly be seen in
diminished profits to the producer and high
rather than his judgment led him to SYM
pathize with the strikers. Some very valu-
able lessons in economics are being learned
just now In the costly school of experience.
The future of the stock market depends
upon the tactics of the big bankers
and capitalists who engineered the recent
decline, chiefly to bring about a wholesome
of values and incidentally to
curb the power of reckless spectators
whose operations were a menace to the
entire street. The prolonged downward
movement has not as yet exhausted itself,
when 1t does a temporary reaction will
follow. The market appears to
be under a more conservative control, but
subject to frequent and wide fluctuations
affording hereafter a good chance for trad
ing. 1t is quite certain, however. that
there, is no general bull market in sight,
simply because the money to conduct IL Is
available, and the undercurrents in
other quarters are still r~eactionary. l still
aduisn cantlnn in pe11inR min deht