Omaha daily bee., 1902-12-01
STOCK MARKET UNSETTLED
Big Financial Interests Not All in Harmony
az During Past Months,
CONSIDERABLE BEAR ELEMENT NOTED
Funds Returning from Interior, but
Heavy for January Pre-
clude Any Laxity in the
Money Market.

NEW YORK, Nov. 3O.-Cspecia I)-Henry
Clews in his weekly letter says:
Conflicting influences caused a feverish
and unsettled market. The situation is no
longer one-sided; a bear party of consider
able dimensions is at work, and the bulls,
while able to prevent any marked weak
ness are unable OF unwilling at present to
carry on a vigorous campaign for the rise.
Just now an added uncertainty is imposed
by friction between prominent capitalists,
harmony being vastly more difficult to
maintain than twelve months ago, when
prosperity seemed endless. Since then a
change in the drift of affairs has set in,
and differences between the big leaders are
much more likely TO occur; for should any
of these gentlemen succeed in relieving
themselves of a satisfactory portion of
their load, they will not be disposed to af-
ford much assistance to those left behind.
For several years past the interests of all
the active leaders have been on the long
side, and there has been a conspicuous
lack of talent on the bear side, chiefly, of
course, because of extraordinary circum-
stances. Whether changed conditions will
develop a new set of bear leaders or not
remains to be seen; the probability Is that
they will, and that the future will witness
some sharp contests for supremacy between
the two sides. For this reason the market
at times may not be so strictly governed
by natural influences as In the past; and
while these may control in the long run,
still the operations of big leaders will be
an Important factor in the future and may
require closer watching than heretofore.
Funds Return from the Interior.
Funds are returning from the interior
and the banks appear to be steadily in
creasing their resources. To this extent
situation. on the other hand. the treasury
IS absorbing funds at a suggestive pace, and
met and January disbursements yet to be
provided tor, there is abundant reason for
caution in the local money market. Some
sharp lurries may be expected during the
next thirty days, which would be anything
but comfortable for holders of weakly
margined stocks. Europe still shows,a ten
dpnrV 10 mako america ne Enffla fhnip Inn
eign obligations, and there is every pros
pect that the Transvaal and other impor-
tant foreign loans will shortly be placed
upon the foreign markets. This probably
accounts for the attitude of foreign bankers
toward Americans more than any real dis
trust of the situation here. We are. evil
IDENTIFY drifting, however, toward gold ex-
ports, which are almost sure to follow any
softening of money rates on this side.
Exports of Gain.
Exports of domestic produce are showing
satisfactory 6ains, cotton and grazing NOV
ing outward more freely; yet the favorable
trade balance thus promised is being coun-
terbalanced by phenomenal imports of for
eign merchandise. The latter movement
promises to continue for some months to
come. 1t is simply a natural result of high
prices on his side of the Atlantic and
low prices on the other, as well as the
utter Inability of some of our industrial
establishments to satisfy the home demand.
1t is by this means in ali probability that
normal conditions will be restored. Pres
ent high prices of stocks and merchandise
cannot continue indefinitely. 1t is simply
a question OF time when increased supplies
will intervene and turn the current down
ward. This has already occurred in the
case of securities, of which there is an
excessive supply overhanging the market,
and the same will eventually hold true
in the merchandise markets. Just now,
however demand exceeds supply in many
of the commercial markets, and consump-
ton is being greatly stimulated by recent
advances in wages. Meanwhil the rail-
roads are overburdened with traffic, and
gross earnings continue to increase.
Bears are Handicapped.
While this situation lasts 1t is impossi-
BILE for the bears to make any serious i'm
siderable increase in the short interest it
Is comparatively easy to force a covering
movement. Increasing expenses, due to
the rise in wages, increased cost of coal
and other raw materials, are, however,
making serious inroads upon the profits
Of railroads and industrials alike. When
annual reports come out, some unpleasant
surprises may be expected on this ac-
count 1t may as well be taken for granted
that the period of high profits is over, and
sooner or later values will have to be
mistic view, but simply a recognition of
facts as they are. 1t is just as we'll to
realize that the sooner the country and its
industries get upon a normal basis the
better, and the more stable our status will
become.
Congress opens this week, but the pros
poets of radical legislation are remote,
Currency reform is urgent, yet divergence
of opinion seems likely TO delay action.
President Roosevelt'S message will be
awaited with much interest, although the
executives views are so we'll known that
no radical utterances are anticipated. The
market has cut loose from the Manhattan
lease negotiations, which seem to have been
fully discounted. a teverish tone prevails
which offers good opportunities for trading,
but speculative operations should be con-
Quoted with much caution.