New-York tribune., 1902-10-12
{luanriai.
The Financial World.

news and but suggishly, or scarcely ar an
good news. The meaning of this as e<pou,s.s
by experience. is that we are moving dowpw.~a
and that level will finally have to be rsacA.s
where the market viii respond to good news a,s
not 10 bad. That is the bottom.
How far we are from this level no MAJ, 49,.
tell But that we are some considerable va
from IL yet is certain. OF the market wouIa =.
act as il does Every rumor Of trouble chin, 4,
a distorted report Of Treasury Departments =.
tion rrecipttates a wild selling movement. a.
appointment over the figures Of a bank st.,.
ment. repeats the operation an effort "a w.
prices or what looks like good news results :.
checking trading and producing dull spells. ,,s
after three days Of laborious work IN mak,,.
recovery from the drop Of few hours suas..
fright comes and the whole gain is lost in h,,
an hour. and more too
That is a picture of the market as il ia nan
the correctness OF which will be recognized ~
every one. and the logical conclusion canno,h
escaped, that liquidation is not completed; Ia
more must come. and that generally lower prs,
must result from il
Nor Is this conclusion invalidated by thss.
that rallies in individual stocks. or groups \,
them. NAV. and will occur. That but retars.
not averts. the downward movement Thes.
rallies will be on the short interest which In m.
present temper OF the Street shows a tendencv
20 grow. One stock. two or three stocks bs
come oversold; a quick drive ar the shorts IN
it sends them TO cover. and brief rally results
We have seen some Of this the past week. in
several stocks notably in Sugar.
We are confronted with the fact that serious
niscalculation was made, even in conservative
banking circles. as to the way the money mar.
ket would act this fall Such stringency az
has developed, calling for the most heroic exer-
tions by the Treasury Department 70 avert
serious disaster. was not anticipated. The worst
looked for was close working market which
should keep the call rate up to and per cent
with perhaps an occasional furry due 10 some
exceptional operation What we have run
against Is condition OF things which has 50
far frightened the banking community, that
every bank officer Is thinking only OF one thing
safety. II is not the getting Of profitable in
terest rates which mainly occupies his stten-
ton, but the extent OF his reserves and the
safety of his loans. The high interest rates and
the severe scrutiny Of collateral result from
this
II from this reason or that so great an error.
or rniscalculation, was made in respect 70 the
workings OF the money market. with it's conse-
quences TO the stock market: we are justified in
regarding with some doubt now, assurances that
liquidation is over. when many signs ind-
cate that II is not.
After the drop in the market last Monday. the
slow effort at recovery was made on the idea
that the gathering OF the politicians would ef-
feet settlement Of the coal strike. Some Of in
ferior sort OF spectators in the market undoubt-
edly bought stocks on the idea that they had an
inside track this. and that when the ex-
pected announcement was made they would sell
a. big profits on the upward rush Of the market.
In fact, the whole move had the appearance OF
a "A I'M hv
some rather cheap people mainly on impu-
dence and Misrepresentation. IL evidently de-
ceIved Mitchell as well as others. As market
operation 10 was failure: as the men whose
word carries most weight. were not deceived.
and when the conference fell through. the mar
ket declined, and was put in good shape for the
sudden fall IL had yesterday on the appearance
OF the bank statement.
At this time. a settlement of the strike seems
as far OF as ever. though of course IL is not
A strike Is industrial war. but as much war as
military war. Every week the opposing parties
are hghting brings them so much nearer to the
exhaustion OF their resources. and final peace
one week nearer Only from this general propo-
sitton can we say that a settlement Is nearer
than IL was; but II any one can tell how near NJ
is a prophet.
II NAV not be generally known that the coal
operators are daily exhorted in letters and teie-
grams from employers OF labor all over the
country 20 fight this fight out at any cost En-
ployers as a class are alarmed at the IDEA Oh
defeat in a contest Of such magnitude WHICH
has engaged the attention of the whole woriu'
and seriously affected economic conditions NOT
only in this country but IN Europe. II we oss
This hght." is the tenor Of all these conmuniea-
tions. there will be an epidemic OF strikes al
over the country. and no limit TO the demands
OF the strikers" On the other side, organized
labor is Just as desperately determined. me
coal consumer has 10 suffer and go on suHerihs'
as non-conbatants usually do suffer IN neroe
war.
We know what this suffering is in the East
II ts extending seriously 10 the west me
withdrawal Of the supply OF anthracite fron see
tions where bituminous coal is the fuel chienS
used has been sufficient to greatly increase 'n7
cost of that coal, correspondingly increasing inc
cost OF Industrial effort and OF private Twins
The longer this strike continues. said West.
ern man who runs chain or country stores anu
is in good position TO see it's effects the surer
this market is TO go down. l am already reel-
ing the effects in my business. This is IN sec
tions where anthracite coal is used only oy 'h7
battsr classes The poorer classes can sun se'.
their soft coal but only at almost doubled cost
When the strike is settled. the effects VIII Gun
tinue. for a considerable time ar least
as severe and costly as this leaves much y
hind IT, the same as other wars do II aaS -. -
so much greater and more wasting than "a9
supposed TO be even possible. that stock nl'ii-7'
calculations have been wholly upset
Tn. money situation will gradually improve y
tn,nroving now. despite the discouraslhs az
pearance OF yesterdays bank statement, 90
that the Street will have 10 see further ana po
sibly considerable liquidation in the stoeE
-. .s.,,.. irs,itable CUTHBERT MILLS