Omaha daily bee., 1902-10-27
VALUE OF STOCKS SACGINC
Conservative Interests Unwilling to Buy at
Speculative Prices,
PROFITS SHOW TENDENCY TO DECLINE
Extreme HIEh Prices Have stimulated
IMPORTS and Also Served 60 Check
ExpOrts-FOreiEners Not
Buying Grain.


NEW YORK, oct. 26-tspecial .)-Henry
Clews, in his weekly letter, says:
Values on the Stock xchange continue
10 exhibit a sagging tendency in spite or
occasional efforts to rush them upward.
The latter operations have not been sig
nally successful, conservative interests cou.
tinuing to show decided opposition to all
quently largely of a professional nature.
What the early future will bring forth. II
is difhcult to determine. The materials for
Considerable Improvement has taken place
in the monetary situation, and .apprehen-
sions of disastrous stringency ave been
removed by liquidation in stocks, by con-
traction in loans and by Secretary Shaws
energetic efforts to counteract the govern
ment absorption OF funds. The stoppage
of the coal strike was also a favorable
feature, inasmuch as IT paved the way for
which, had il continued, would eventually
have created a more serious disturbance in
Wall street. Internationally the coal stocks
power, II being certain that a five months
loss of product would have created a sert-
GUS shrinksge in the value Of these seeuri-
accorded. II that power had been crippled
by untoward events 1t is not easy to i'm
agine the consequences to the coal stocks,
which throughout the ordeal displayed re-
markable staying powers.
PROFITS Are Declining.
with anxiety concerning the strike and
the monetary outlook removed, the list OF
stimulating features ends. II is true that
general business continues active and large
in volume, with no prospect of immediate
diminution. But a striking feature of busi-
ness today in nearly all lines is declining
profits. AS already shown in these advices,
net profits fol- both industrials and rail-
roads are beginning to shrink, owing to
increased cost Of raw materials and labor.
The same is true in many other lines Of
business whose securities are not dealt
In on the Stock exchange. Should this tend
ency continue 1t means a curtailment in the
purchasing powers of the wealthy classes,
which In turn will reduce the consumption
Of many commodities, especially luxuries.
Perhaps this tendency Is only temporary,
and such II Is hoped will be the case, but
there are only too many suggestions
strengthening the impression that a partial
reaction from the high tide OF prosperity
is now upon us. Not the least indication
foreign trade during the last year. High
prices here have greatly stimulated i'm
ports and checked exports; the result being
to greatly diminish the favorable balance
of trade which existed two years ago, and
render possible the talk of gold exports,
which now tends to make Wall street hesi-
tate, not so much from the actual as from
the moral effect of our being compelled to
ship gold when the banks are e~ndeavoring
to strengthen their resources. Exports of
wheat, corn and cotton are all impeded at
present by the fact that American holders
demand prices that European buyers will
not pay, and even extraordinarily low out
ward freights are not sufficient to move
these products from our seaboard with de-
sired freedom. other evidences of a re-
enough have been presented to warrant a
conservative attitude toward the future
until some sort of readjustment has taken
place which will encourage a fresh forward
movement.
Distrust American
Such a change is hardly likely to appear
for some weeks, perhaps not until the new
year is close at hand or fairly begun. Two
months ago gold imports were anticipated;
now gold exports seem equally probable.
The explanation of this change Is of course
pps ff trade cue but 70 c HE yeS to tfSoF Changed attis
tude of European bankers At both Paris
and Berlin there has been an unexpected
financial strain. and added to this there has
also unquestionably been a growing. dis
trust of American speculative methods,
that would nave sooner become more
marked except for the confidence induced
by our continued material prosperity.
Home necessities, therefore, might easily
American accounts. the effect of which
would be reflected In the foreign exchange
market and in an increased facility for
shipping gold. Eventually that metal will
go where II is most wanted. where 1t will
command the best rates, and any large
efiux would soon be impeded by. higher
set free through Secretary Shaw's efforts,
amounting probably to nearly SlOo'OcOOCC
shipments. through temporarily relieving
the monetary pressure at this point. 1t is
about time that these disbursements made
their appearance in a more favorable bank
statement, though 1t Is to be remembered
that a large portion of these funds were
released at interior points. thus affording
indirect relief here by anticipating future
demands.
No Change This Year.
While the grip of New York bankers upon
the situation has been somewhat weakened
by the sudden relief to the money market.
II is to be hoped they will steadfastly pre-
serve their present conservative attitude
toward undesirable speculative movements.
In any event firm money is likely to last
into the new year; a political campaign is
on which may easily develop some unpleas-
ant surprises considering the present state
of public unrest; and, until the financial,
political and business prospects become
more settled and more favorable. we can
not confidently look for a buoyant market.
These conditions may have been very
largely discounted; still there is no dis
cernible change In the conservative spirit
situa ton.