The San Francisco call., 1903-01-16
Money, Stocks and Trade.
TIA r FORMER Is EASY. TIE SECOND AC
TIVE AND THE LATTER IN SOUND
CONDITION

TIE FORMER IS EASY. TIE SECOND AC
TIVE AND THE LATTER IL SOUND
CONDITION.
The New York circular Of Henry Clews
In spite Of reaction following a rather
TOO hasty advance around January the stock
market shows general and perfectly legitimate
Improvement For the last three months il
hss been persistently pointed in these ad-
ices that the money market was the key TO
ne speculative situation There was sufd-
Gent funds during that period TO 20 round
f-r proper business demands. but absolutely
none to spsre FOR conspicuous speculative pur-
POSES WITH Tho opening OF tho new year a
rkpccfcd. 4 distinct change for the better has
det eloped in thc monetary situation. Urgent
,lop demands have been met and funds are re-
turning from tho interior with growing free
aonl. Forced liquidation in stocks during Oc-
toner. November and December also released
.arge sums Cf money. while the closing out OF
efcrsl important underH riting schemes had
similar effect A. result bank reserves
src beginning 20 rise and loans would have
-hoNn q much larger contraction than they
have done had it not been for the transfer of
.osns MADE On foreign markets 10 domestic
banks The latter feature though somewhat
nf surprise At the time had the good effect
~ diminishing our indebtedness abroad and
-o iessening the Inducements FOR gold ship
aur banking resources At home
Nov that the stringency incidental TO jan
Hafs mas heeh passed and The seasonal De
Mands arc over. the outlook Is for more
abundant money supplies and consequent easier
rates This does not mean that are TO
nave q period cf clear sailing. On the con-
frary. rho situation though improved will re-
4uire very close watching There has been
heavy increase in the demand for money re
-uitiuE from these three great causes which
arc sim in force 90 some degree: % Unprec-
"deited trade activity - financial deals OF
immense magnitude and 80 excessive specu-
iation- " hen II Is remembered that all these
rXtraordinary demands had to be borne during
? period of high prices which considerably
iessened The working capacity Of a given capi-
Ial. % VIII be better realized what a tremen-
lous strain our money market has been under.
Meanwhile the supply Of money has not been
report f0nately increased. our obsolete and in
elastic currency system being totally made.
guate 10 present demands Our big fnanciers
lao ? kcener appreciation of the monetary
-ituauon than the optimistic specuiatOr: hence
their strong effort 10 suppress speculation in
laL'eI paft oi l'Vz lhere Is stiil no i'm
'ortant increase ia the supply OF money in
sight there be until We secure gen
i-in' currency reform and enact some enlight-
tnco lp 10 date measure. As that will not
hc done this session IL is probs bic that the
money market viii have 10 struggle along as
best 81 can. Prices are now high for ner-
hsndise - well as securities. and the volume
= legitimate business Is large with prospects
u continuing so for months 20 come II fol-
loWs. then. that while funds are in somewhat
.ffttfr supply than before January I. and that
hank reserves ought 10 show an increase. stiIl
inore VIII not be ample funds available for
sNcessiyc speculation.
Any wild buying movement at advancing
lrioes viii quickly run UP against short sup
fiy ~ money and come 10 an untimely end
On the other hand there Is a good opportunity
lor a more active market II accompanied bv
frequent reactions that would avoid the lock-
inE up ~ undue amounts Of cash in speculs
lion. The general business and industrial sit
nsuon Is satisfactory and the volume Of trade
Promises 10 he large. even If carried an at less
profit than in 1902 or 1901 Wages are in
many Instances AT the highest level on record
and labor Is well employed everywhere. SO that
consumption is active throughout the country
4 is questionable n n single line Of fndustrv
an Be found that Is suffering from overpro-
eucfiou. A remarkable instance Of industrial
acnRlty rs the statement that the United
states Steel Corporation has orders on its
looks aggregsting 5347 600 tons against 4
- 200 tons the same time last year
ast deals arc still under way in Wall
street. the last being the acquisition OF Read
.nS BY the Pennsylvania thus explaining the
doubling of the latter's capital to s4OO 600
100 50 the anthracite coal properties are AT
iasf brought under practically a single man
agement and a further step Is made toward
ne consolidation Of Eastern railroads II
may Be taken for granted that the big lead
ors have confidence an the present situation
such announcements only being made at IA
F0rable opportunities Another indication ~
Improving financial conditions was the desc
luton Of the $50 600. .00O loa n pool which nm
'guestionsb bly, saved the country from crisis in
December. After all IL simply served ia nro-
ducc change Ia sentiment thus showing the
rnasterful effect Of sentiment in the mn snd
down movements ia Wall street values