Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-10-05
An Encouraging Recovery In
Stock Market Situation In
New York
AN ADJUSTMENT OF CREDIT
The Banks Greatly Relieved by the
shrinkase to Normal Conditions =
Values Back to Figures Approx
mateIy the Same AS Three Years
Aeo-General News.

New York, Oct. 5.--Henry Clews is
his weekly financial letter says:
The latter part OF the week Wit
messed an encourag ing recovery in the
stock market, owing to the belief that
the worst was known regarding cur
rent difficulties and TO the fact that
many of the disturbing rumors afloat
proved groundless. Previously fear,
not reason, dominated Wall street and
in spite Of powerful resistance IIquida
ton ran to irrational extremes For
some time past intrinsic values re-
ceived scant, If any, consideration. the
extremities Of few rich holders oblig-
buying power was limited. either thru
exhaustion or lack of courage. There
has been just as much unreasoning
distrust regarding security values as
there was unreasonable confidence a
year ago, and in nine short months
market opinion has plunged from, dizzy
heights Of exaltatlon to the very
depths of depression, until declines
We're reached out of all proportion to
any changes in intrinsic conditions.
Statistical investigation goes to show
that security values in the United
States advanced about 4,500 millions
after President McKinley's first cleo
ton. and that the present downward
movement represents Il s!,rinkasa of
fully $500 millions, showing that the
boom advance has larga:y disappeared.
Such estimates are Of 3ou-ee, only ap-
proximate. but they are probably rot
far out of the way, ana very likely.
they at least represent the proportion
ate decline. So extensive ana rapid
a shrinkage as this is nothing less
than panic Of the severest type; and,
while concentrated banking interests
have fortunately been able to prevent
a sudden crash and so save the coun-
try from vastly worse disaster. 1t has
not been able to prevent drastic re-
adjustment of credit, which is raspon-
sible for much recent liquidation.
Liquidation has immensely relieved
the banks, speculative demands are
practically NIL loans are decreasing
reserves are larger than year ago,
the banks are generally in strong con-
dition, funds are ample to move the
crops, the supply of money is about
$124,000.000 larger than last year ana
bankers continue conservative in grant
ing credits to all classes of borrowers;
consequently the much feared more
tary crisis which was expected this
autumn is now an exceedingly remote
possibility. Secretary Shaw is entitled
to much credit in this connection for
his vigorous and resourceful action
in counteracting government operations
in the money market and 1t is now
quite likely that before many months
are gone money will be plentiful at
lower rates. Gold imports can not be
far distant. owing to the increasing
supply of commercial bills and to the
fact that Europe will be necessarily a
large buyer of our food products. The
curative process is probably more COM
plete in the money market than in the
stock market, and before long the
anomalous condition of money COM
manding better returns than securities
will disappear. AS to the crops there
is nothing to add to previous conclu-
sions given in these advices, viz, that
the farming classes turnout the coun-
try are practically sure Of another
prosperous year.