Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1903-12-01
The Financial
Situation
CONTINUED IMPROVEMENT uh'
LIKE CLOSE or LAST WEEK.

Thanksgiving holidays naturally
tended to restrict stock market opera
tions, but in spite Of this confidence
Is rising and better undertone pre-
vades the Street. This no doubt
is partly due to manipulation; yet q
month ago conditions would not have
permitted such manipulations. and
the mere fact that they are even at
tempted demonstrate a change Of feel.
ing and Judgment amongst those be-
hind the scenes.
It Is worth noting that the railroad
situation continues very satisfactory.
Earnings are larger than previous
banner years. and many OF the well
known roads are earning much In ex-
cess Of present dividends. One thing
/ Is as sure as any business condition
can be, and that Is that there will be
no reduction In the dividends Of the
well established and we'll managed
railroads. the margin of profit being
already 80 ample that moderate
contraction Of expenses or improve
ments will insure the stability Of divi-
dends. In many instances the enor.
nous outlays for reconstruction, etc,
paid out of earnings will soon cease
! altogether and this may result in
bringing some Of the non-diyidend
payers into the regular dividend list.
Such facts as these have been tenn
porarily lost sight OF In the flood Of
disaster and dependency which swept
through the stock exchange the clos
ing year.
Unfortunately the same cannot be
said Of the industrials. They are not
as a rule in the strong financial and
physical condition of the railroads.
Handicapped by overcapitalization
and bad financing, they are In poor po-
sition to face any decided shrinkage
in profits. or course this is nothing
new, and has long been forseen, In
the case of steel the inevitable has al
ready happened. AMI It remains to be
seen how other industrials will wealth
er the storm when It comes. For
tunately these securities are chiefly
/ in the hands Df their creators. They
bgye not been very successfully un-
loaded upon the dear public. Commis-
sion houses are practically bare Of
such stocks. and the banks accept
them as collateral to a very limited
extent Ii follows. therefore, that any
shrinkage in these must have limit
ed market effect. considering their
volume, the railroad list having al
ready declared its independence Of the
industrials Such losses, as already
said, must fall most heavily upon the
original holders: some OF whom have
boen Obliged to sacrifice gilt-edged
securities 10 meet their obligations
connected with industrials.
The monetary outlook Is growing
more favorable. Preparations for the
$50 100000 Panama canal payment, Of
course. exert an important effect upon
the international exchanges, and are
likely TO materially check gold i'm
ports, which thus far have aggregated
about $9,000,0O0. No serious disturb
ance to the money market need be
expected unless immediate payment
Is requineJ, which Is impr0bable), for
the reason that the bulk Of this money
will be taken from the treasury and
not from the banks. also the fact that
bankers have been accommodating ex-
change In anticipation Of this payment
to an extent that will render transfer
easy. Funds will soon be returning
from the interior. and our credits
hUIU6u ft6rt uCrh tnhtcitoity baSnAsh'
ened by heavy cotton shipments. Pre-
parations for January disbursements
may cause. some temporary string.
ency, especially IL the canal payments
occur at the same time, but after
the1e are passed the local money
market should be in . safe and com.
Portable position.
There are now two distinct parties
on the stock exchange; one bullish on
railroads. and another bearish on the
industrials. Whether such opposing
conditions will stimulate activity or
not remains 10 be seen. Much no
doubt will depend upon the Northern
Securities decision from the United
States supreme court. which Is ex-
pected next month.
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