Omaha daily bee., 1902-11-03
STOCKS FAIL TO RESPOND
Wall Street is the Least Optimistic Portion
Of the Country.
REACTION FROM SPECULATIVE CRAZE
High Money Rates and Conservative
Action OF BANKERS Have Brought
speculative to
Their senses.

NEW YORK, Nov. 2.-(specisl.)-Henrv
Clews, in his weekly letter. says:
Favorable developments in the stock
market have been lew and had little efeCt,
There has been considerable improvement
In the monetary situation, but values fan
to respond. Not even the cessation Of the
Goa! strike exerted any stimulus and the
entire market has displayed a sluggish
downward tendency, in marked contrast
based upon our good harvest only a few
weeks ago. What is the reason for this
change Of sentiment? Why is Wall street
today unques tionably the Dluest spot in the
United states. Are tbe apprehension
which now find eXpressicI real or fancied.
or are our people at laSt awake to the fact
that the pace of the last five or six years
has been too rapid? These are some of the
questions which the public are thinking
about, and which only time will solve. 1t
is quite certain, however, that the change
I'm Wall street temper is due to a reac-
ton from the speculative craze of 1901 and
OF intoxicatiop is usually accompanied by
undue depression, and any change in the
drift of events is not apt to be measured
is. unfayorable. High money rates and the
wisely conservat tive attitude of New York
bankers have brought unruly spectators
to their senses; diminished profits on rail-
roads and industrials have stopped the en-
thusiasm Induced by continued reports of
big earnings; the aggressive attitude of
labor is beginning to check new enterprises
and create talk of necessary retrenchment
high prices of materials compel postpone
ment of contracts; signs of reaction in the
iron trade, the recognized business barom-
eter, are already at hand; stocks yielded
such small returns at the high level that
they became a profitable sale while good
interest rates prevailed; our favorable for
gold exports are threatened and a grow
ing impression exists that the, crest of the
boom has been reached and that a partial
reaction at least is due,
Election Cuts a Figure.
Added to these naturally adverse deyel-
opments is the approach of a doubtful cleo
ton that may easily project some unpleas-
ant surprises. New issues are at work
among the masses; issues Of a social and
economic order that have thus far been
tenderly left alone by the politicians. Pre-
viously the differences between capital and
labor have fortunately been kept out of
centuated these difficulties, and the fear
that they may result disadvantageously. to
f6e PIS acsYY ID dePPT 9weiF is P% sfhHiT TeSpOP paTtS
wins at the coming election. II is certain
that the newly arising conditions will com
pei the consideration of a great deal of
new legislation affecting corporations; in
short, we are entering a new era In which
labor will have to be adjusted without in
ringing upon the right of the public at
large; Wise legislation will be needed to
question for the distant future.
Bears Lack n Leader.
The immediate outlook is for a good
u NAA@aA 49, f-AE
fhas been created, but IL lacks leaders, and
no aggressive policy can be looked for in
! that quarter while stocks are so strongly
concentrated and we'll backed as they now
are. The big holders being in q very con-
servative mood appear quite willing to per-
NIT a downward drift, and no change seems
likely until the new year or anticipation OF
| January disbursements is at hand. An
oversold condition of the market, on the
other hand, might easily tempt punishment
to ver-venturesome bears. A rather Sc
we're strain has been imposed in some quar-
tiers by the recent decline, and II is not GER
tain that liquidation Is complete, The
| failure of the market to respond to rising
bank averages and easier money is sig
nificant. There is no real distrust, but
caution is still observed in high circles.
Throughout the west business prosperity
| appears uninterrupted. There the benefits
of large crops are being already expert
enced. Unfortunately prices of agricul-
tural products are held so hight as to de-
lay exports and thus increase the posi-
biiity OF gold shipments. 1t seems impos-
sible. however, for the outward movement
of produce to be restrained indefinitely
when Europe is ready to buy our corn,
cotton or wheat at moderate concessions.
The excessively low outward freights now
ruling (the result of many inward coal
cargoes ordered on account of the strike)
cannot last very long, and this oppor-
tunity is not likely to be lost sight of. The
cominR week promises to be a quiet one
and largely influenced by the election.