The Washington times., 1902-09-28
General Conditions Are Un-
changed, Business Pros
poets Excellent, and Rail-
road Earnings Large.
FEARS OF A CAR FAMINE
Speculation Orgy With Fevered
Public Would Now Rule Were
It Not for the Restraint of
Tight Money.

Henry Clews, in his weekly financial
letter, referring to the contraction Of
about $65, 900, ,O0O in New York bank
loans In the past six weeks. says:
ut Is surprising that 1t has been ac-
complished with so little Inconvenience.
Thus far there are no signs of injury
as result Of this contraction, and II
the test continues without serious con-
sequences in any quarter 1t will prove
very satisfactory demonstration Of
financial soundness in this market.
"The end of the present stringency Is
not yet in sight, and 1t would be haz-
ardous to presume that the worst had
been passed. Western crop demands
are estimated at between $50 ,000, 900 and
500. 100000. goodly portion of which
falls indirectly upon this market. Both
crop and trade requirements are much
larger than year ago. and funds sent to
the interior for these purposes will not
begin to return for another four 60 six
weeks. IL then.
Conditions Unchanged.
General conditions are unchanged.
Business prospects are excellent, rail-
road, earnings continue large, and 1t is
certain that the roads will be taxed to
their fullest capacity in handling freight
for another six months. Already there
are fears of serious car famine. No
abatement Is shown In the general de-
mand for iron. Home furnaces cannot
supply the demand, and orders for about
50,OO0 tons steel billets and 100000 tons
pig iron are being placed in English and
German markets: while over $4,000 tons
Of foundry iron have already been I'M
ported into this country.
Here and there signs Of reaction can
be detected, and the horizon Is not
cloudless by any means; but thanks to
a good harvest the outlook Is satis-
factory far beyond what any human judg-
ment could have foretold three months
ago. Confidence in the future Is running
strong; too strong perhaps for entire
safety, for the chief danger now lies in
the excesses which Inevitably accompany
period Of prolonged prosperity.
Speculation Rife.
Were it not for the restraint Of tight
money, we should now probably be In
the midst Of speculative ORGY, with the
public highly excited over the effects of
magnificent railroad deals, and the big
insiders quietly allowing them to assist
in tightening their present burdens.
Fortunately this experience has been
postponed. II not averted; SO tight money
is blessing in Disguise
With reference to the stock market
Mr.. Clews says:
1.-The conditions are not yet ripe for a
permanent advance. The New York
banks will be compelled to call in 4
great many loans yet before they get
into an affluent position to admit of
helping their mercantile customers,
which can only. be done at the expense
of Wall Street.
Abnormal Prosperity.
'It must be remembered, however,
that the present stringency in tho money
market is not due to any adverse con-
ditions or want OF confidence. but to alb.
normal prosperity throughout the entire
country and the fact that money is
spread out over a large surface instead
OF being concentrated in the few great
financial centers.
The banks can be relied upon to
stand by their mercantile customers,
even though Wall Street is pinched