The sun., 1903-06-22
THE FINANCIAL SITUATION.

end OF long decune III P'o
dicates that the declining movement hae
spent It's force. The bearish oonunsehe
seemed to realize that a thus far snaio 1hou
70 and no further command had interposeo
between the prices Of securities ana their
operations, and, while unwilling 10 aoh'
that the market had turned, yet con.
fessed. or the more important members Oh
their party did, that prices would prop
ablv hold rather firmly -for time, any
wav. Speculators for the rise, while rnaue
very cautious by past errors OF judgment
were disposed to buy stocks on niue
larger scale. In plain words the spirit
Of the financial community during the week
vas one OF distinct reaction against the
extreme pessimism that had for months
back ruled It. The conviction gained ground
,hor the worst, and much more than
the worst, had been spoken concerning
conditions in the financial, commercial
and AGRICULTURAL world and the impression
also became weighty that the forced selling
Of good stocks because Of losses incurred
in the underwriting craze OF the last
two years had gone about as far as II was
going to. Appreciation was had OF the
fact that the business OF the country
was not PROSTATE and that signs OF
the much.dreaded business contraction
vere few and far between. All eVl-
dence points to greater prosperity o,
legitimate business now than ever. BANK
clearincs, both in and outside OF the city
of New York are away above those OF lasc
wear. Railroad net earnings, whlch lot
the first six months showed small, II any.
increase. have since the lat OF January
very greatly improved; the reports Tor
March and April exhibit gains, according
TO various statistical authorities, OF between
~ and is Der cent. The wiser and more
powerful members Of the bear party, reason
ing about these things, seemed to make
up their minds that while there was
no doubt, Of course, that the country was
eoins to the dogs. the pace Of the move
ment was, for the time being, good deal
slower than the decline in Stock Exchange
quotations The episode OF the Colorado
Fuel and Iron Company's notes and the lall
in tho price OF important stocks like the
United States Steel and Metropolitan street
Railway shares, which two weeks ago
would have unsettled the market COM
pletely, last week caused but slight tremor.
It may be that we have not heard the last
Of the Colorado Fuel and Iron matter. al
though It is perfectly we'll understood that
the company's difficulties represent merely
the struggles Of various interests to obtain
control OF the oompanys affairs. 1t may
be that from time to time many industrial
concerns will have to pay the penalty OF
sins committed in other days IL
NAV be, even. that there are rail-
road corporations Of established solvency
and sharing, indubitably. in the general
affluence of railway business, which must
vet put their new-formed and ingenious
schemes Of high capitalization and owner
ship without responsibility to a sterner test
than has yet been applied to them. What
ia important now to notice is that the stock
market has dona much to fortify itself
against these happenings. and that on sew
eral sides it has raised fortifcations where
none Is needed.
Perhaps the selling OF the United States
Steel shares might have exercised more
influence than 1t did, had not the reasons
for it been understood in high quarters
The liquidation was Of a nature benefiting
the Steel Corporation, not injuring it. and
in due course Of time the truth will become
apparent. In no respect has bearishness
been more hasty and undue than in regard
to the iron and steel business. From the
talk heard among the curb" philosophers
In the financial district one might
imagine that all the iron furnaces
and steel mills OF the country were
about to shut down. The fact is that
the production Of the steel mills is ordered
ahead for the rest of the year, and in some
instances we'll into next year. while an
enormous business in iron awaits the settle
ment Of the deadlock that has existed for
month past between producers and con-
sumers. Consumers Of iron claim with
reason that concessions must be made from
the high prices paid last year on account
of the scarcity of fuel and similar accidental
and extraordinary causes. There are some
pretty plain indications that this dead
lock is about breaking. 1t cannot, in the
nature Of things. last much longer. for the
last half of the years iron requirements
must be filed pretty soon. The idea, how
ever, that it is lack OF business that Is de-
layine consumers orders is absurd. The
signing on Friday by employers and
workmen Of the wage scales in the steel
mills for the ensuing year is an important
event; and this leads to the remark that
the improvement in the general labor stu
alton noted two weeks ago has contin' |
it's progress. The troubles in the anthra-
cite region are at an end. The strikes in
Lowell and Philadelphia are fizzling out.
The building trades difficulty in our own
city is one where both parties seem to seek
an adjustment, and an adjustment. too,
nm a basis which will make strikes and lock-
outs for years to come practical impoesi-
| bility. The great fact is, as noted last week,
| that the labor leaders throughout the coun-
try are beginning to see that the demands
| OF labor unions have been pushed to ex-
| treme limits and that these demands cannot
| be advanced further without hurting busi-
ness and causing laboring men to be thrown
| out OF work.
| We have not had ideal weather for the
crops this year. That every one recognizes.
Winter wheat has been damaged by the
floods and the corn season is two weeks late.
The leading journals in the grain trade
state, however. that the lay newspapers
have exaggerated these unfavorabe con-
ditions, and while as regards winter wheat
the presence of rust and similar injury ia
auth enticated in the bottom lands along
the Missouri and Mississippi rivers, the yield
throughout the Southwest is much better
than estimates at the beginning of the sea
son, even. made out. The harvests which
are nearing completion in Kansas, Okla
homa and Texas are affording a yield of
from 10 to so per cent. better than last year