Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1903-11-17
TIE FINANCIAL SITUATION.

THE FINANCIAL SITUATION.
Disturbing Influences, some natural
and some artificial keep the stock
market Ii an unsettled condition. The
natural Influences arc those included
lin the re~adjusting process forced by
lessened business activity and By col
lapse Of the late industrial combina-
ton boom.
Az for the artificial influences. they
are chiefly speculative and the result
of the efforts 81 powerful operators TO
take advantage Of or protect them.
selves from consequences OF the larger
movements which are altogether be
yond their control. Personal con
troyeTsies do not create seen flngtna
tions as the market has lately witness
ed; yet one party Or the other may
and usually does seize upon Just such
opportunities To intensity depression
In order 10 carry III long contemplate
cd plans. Big men walt patiently for
such crises; hence the belief that re.
cent market movements Will later OF
show important changes Of balance Of
power In the financial world.
United States steel and Pennsylva
MIA railroad shares have experienced
significant declines. The recent addf
tional drop In steel securities was at
iributed to lower prices for products
and d consequent snTinkage In profits,
though In sone quarters 1t was init
mated that the decline was stimulated
for the purpose Of securing preferred
stock for conversion purposes. IL
was the decline In Pennsylvania
stock, of the most substantial
railroads on the continent, that excit-
ed most surprise. BY some 1t was
attributed to liquidation by numerous
holders for the purpose Of protecting
less marketable securities, by others
to an attack from hostile interests,
and by some to the timidity OF hold
ers who disliked the policy Of ex-
pansion which the company has late.
" pursued.
Outside Of these two features the
weeks developments were not Of an
%unfayorablo nature. The most en-
couraged change was the drop in
sterling exchange, due to increased Of
ferings OF cotton and bankers bills,
also to somewhat easier conditions In
J London. engagements ~aggregating
nearly s6,000,0 900 OF gold have already
! been made, AMI more Is likely to fol
low In spite Of the opposition Of the
! bank of England, which, recognizing
! our power to draw gold. failed to ad'
vance the bank rate as anticipated,
! Cotton exports, which have been de
layed by backward crop conditions,
I are D being rushed forward, adding
: materially to the supply Of exchange
7 Tie new security issues or Pennsyl'
vania. Lake Shore and other roads,
| %aggrcgating about 500. 0oO, 900, will
n also provide a more liberal supply Of
i exchange, as a considerable portion Of
il these will no doubt flnd a ready mar
i ket In Europe.
II is quite probable that the crisis Id
i the steel trade has now been passed
4 and that improved conditions can be
i reasonably expected. Pig iron II
selling at nearly $40 below the recen,
4 high level. or, In fact, below present
cost Of production. Prices Of finished
products have. also been sharply re
y duced, and at the new and more stable
level many contracts which were held
ii su spense viii now be placed. by
extensive economies and cost rcduc
/ tiDns the big steel corporation may bt
q able to partially Offset the decline In
selling prices. but retrcnchment Il
the order Of the LAY not only in tht
steel industry but In other directions
and an immediate recovery In the vol
ume OF business Il not To be expected
An unsatisfactory feature Is ths
0 gfowing speculation on the long sid,