The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1903-10-12
HUNTING FOR TROUBLE.
Wall Street Has Found More Than 1t
Desired

Financial Review says:
For some time past Wall street has
been hunting for troubles. and like most
individuals engaged in that doleful oc-
cupation it has found them with greater
promptnesS and abundance than antici-
pated. The result has been q mood Of
undue dependency from which recovery
is slow, because the patient has been
weakened by previous over-indulgences
and requires time for rest and recupera-
ton. Nevertheless. the outlook is more
assuring than month ago, apprehen-
sion is disappearing, a number of i'm
portant doubts are now matter OF his
tory, and there is 10 longer any cause
for anxiety concerning the crops, money,
or even the steel dividend, which was
the last element of uncertainty. The
reduction of the steel dividend was both
wise and time, having been fully dis
counted by the previous decline in stock.
Public opinion no doubt had much to do
with forcing this conservative action by
the directors. and had two per cent al
ways been paid, instead of four, the
stock would probably nave been selling
at double its present value. The best
corporation management is that which
builds up reserve. not one that dis
tributes all the net earnings to stock
holders; the reserve being to corpora
ton precisely what a savings bank ae-
count is to the wage Garner when the
day of stress arrives.
revelations concerning the organiza-
ton of some of the newsr industrials,
it is needless to say, do not aid in re-
storing confidence; yet 1t is easy to at
tach too much Importance to these
tranSitory disclosures and to overlook
the better and more lasting influences.
The monetary situation is henceforth
likely to show steady improvement, the
only hindrance to lower rates of in
terest being the csop-moving demands.
which will soon be at their height. Aft
er the January disbursements are over
we may expect money to be plentiful
and cheap, although lenders no doubt
will continue to discriminate Both
cotton and grain must soon go forward
more freely and provide an ample sup
ply of commercial bills. which will tend
to bring gold this way or settle our FOR
eign obligations, either movement be-
ing advantageous. The harvest, of
course, is practically over, all reports
from agricultural sections being salts
factory and showing no abatement OF
prosperity.
outside of Wall street the only cloud
on the horizon is in the industrial SIT
uation, where there is a feeling OF hes-
itancy owing to the high costs of pro-
duction forced by the demands of labor
and by high priced materials. 1t is TINS
fact that strengthens the impression IN
business circles that an industrial re-
action of more or less consequence is IN
front of us. Perhaps reasonable
recognition of this fact on the part OF
both capital and labor will facliltate
reimbursement. No sane person ever ex-
pected that the abnormal activity OF
the mast few wears was to continue I'M
interruptedly This does not mean that.
a precipitate fall is to be expected; on
the contrary, a gradual reaction is
likely and desirable. Readjustment TO
A lower level of prices does not neces-
sariIv involve depression and loss, be
cause to, a very considerable extent, II
is certain that enterprise and INDUSTRY
would revive under a moderate reces.
sion in costs and that the industries VI
the nation would be upon more ssaple
basis if upon a lower level ConsIoera-
BILE recessions have already been mace
in iron. and when it is certain that Dol
tom has been touched orders now WITH
held will be freely forthcoming. Tne
same is true in greatefa or less degr zee ~
otter departments of business.
The striking feature of the market
TODAY is the abnormaIly low prices or
many of the best railroad securities.
not few of which are sellng on
ner cent and above basis. Encouras-
ing railroad reports are completely ig-
nored although the railroad SITUATION
continues eminently satisfactory Ineie
is no prospect of reduced DIVIDENDS IN
event of business reaction. because the
roads have spent so freely for better
ments out of earnings that they retain
large margins for economy OF course.
the present low price OF GOOD rallrodu
stocks IS explained Dy TIE AoCN tA~e
rich men have been compelled to sell
their best securities in order to protect
the poor ones which they unfortun-
ately acquired mainly through under
writing subscriptions. The ordinary IN
yestment demand is therefore more
than satisfied the rich as rule not
being a BILE tc increase their holdings
while the marginal buyer is wisely
cautious even of bargains. AS con-
fidence returns and national savings IN
crease these better grade securities Will
advance and we are not unlikely to see
rising stock market even when gem
eral trade is dull, simply because these
values are again seeking their normal
level. But what about the industrials.
or the 'indigestibles, which, While
suffering least. have been the CHIEF
cause Of trouble?
Are they any more digestible than
they were? has the supply of these been
decreased to fit the demand? is the
prospect for their final distribution any
better this year than last? and how VIII
they Withstand a business reaction!
These questions are still unsolved, ana
only time can work them out Without
doubt a period of reorganization is in
store for many of such properties; but
this fact has been so thoroughly dis
counted by the declines of 1903 that II
cannot seriously injure the stock mar
ket now.
Discrimination should be the policy of
the daV While money continues easy
the dl1efenceS between nlSH Sidue anu
low grade securities is abnormal and
cannot continue. Either the former
must rally. which seems most probable
or the latter must still further reflect
distrust and reaction. More reasons will
doubtless soon. be found for advances
than declines. especially when liqulda-
ton has been found to have about run
its course: and after a fair period fSr
rest and remuneration has been had then
confidence will revive and soon restore
values to the normal
Wedding Tour in Devil Wagon.
Berlin, Oct. 12.-Prince and Princess
Andrew of Greece, who were married at
Darmstadt. October :, are now at
Heiligenberg castle near Jugenhelm.