The Savannah morning news. (Savannah, Ga.) 1900-current, 1903-04-15
THE FINANCIAL SITUATION.

EANFANNAAh II AAONs
1t is reported that Mr.. Shaw. the
Secretary of the Treasury. is afraid
there will be financial trouble of
more or less serious character before
the end of this year. He is not talking
about the financial situation, but(it is
the understanding that he is trying
to put the Treasury in such shape
that it would be able to assist in check
ing a panic if there should be one.
The purpose of his offer to take up
the 190s-1S three per cent. bonds, and
certain of the four per cent. bonds,
and issue for them two per cent.
bonds, is to put the banks in a better
position to respond to calls upon them
for money.
To the ordinary observer there do
not seem to be any signs of panic.
The crop prospect Is very fine and all
of the industries and the railways
seem to have all of the business they
can do. Still, there is a lack of con-
fidence in the continuance of the pres
ent period of prosperity. That there
10 Guthl d lcNh II dpEdI HUM hAAN
gradually falling prices of both rail-
road and industrial securities.
On Monday there was a very mark
ed decline in the prices of stocks and
bonds. Even the very best bonds and
stocks fell three TO five cents on the
dollar, and other securities suffered a
decline of 10 and even 20 cents on
the dollar.
Just what the cause is of these fall
ing prices is not apparent. 1t may be
that more securities have been put
on the market than the people want
more. in fact, than they have the mon
ey to pay for, or it may be that
there IS a belief that both stocks
and bonds are held at prices that are
too high. Whatever the cause, there
seems to be a desire on the part of
a great many of those who have been
purchasing freely of both railway and
industrial shares during the last two
or three yearh to get rid of their
holdings.
No doubt the decision in the case of
the government against the Northern
Securities Company has had something
to do with the fall in prices. There
is no information to be had as to what
the governments position in regard to
other trusts is, and therefore there Is
a feeling of uncertainty as to the ac-
tual value of all Kinds of securities
which have the faint of a trust upon
them. Indeed it is most difficult to
determine exactly what securities are
not trust securities
But it is probable that the main
cause of the feeling of apprehension
is the fear that the market is over
loaded with securities which are not
desired by the public. The know
ledge that these securities are slowed
away in strong boxes, waiting for a
market has doubtless alarmed the
holders not only of similar securities,
but also of securities of the very
best kind, and they are Fastening to
dispose of their holdings. 1t may be
that it is this rush to sell that is
causing uneasiness in financial circles
in New York city. But whether it is
or not the fact remains that there is
an uneasy feeling in financial circles,
and that owing to the large offerings
prices of stocks and bonds have fallen
considerably within a very short time.
Secretary Shaw couldn't do very
much to stop money panic if one
should start, but there is no doubt
that it is his purpose to be ready for
any emergency that may arise.