The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-05-24
The WEEK
IN FINANCES
Many Disturbing Factors Com
bine to Depress Sentiment.
LABOR PROBLEM SERIOUS
Opinion Prevails That Employers Will
Have TO Take More Decided Stand
Than Heretofore-Crop Re.
ports and Railroad Earnings.
Especial 10 The Times. pIsnatch)

Especial to The Times .Dlspatch)
NEW YORK, May 23.-The Financial
Ago says.
Many disturbing factors have COM
bined to depress the sentiment not only
of the speculative community, but of the
investing public as we'll 1t is largely
because Of the absence OF support among
the great army OF individual investors
That the stock market has failed to show
any evidence OF resistance to the down
ward tendency of the past few months;
not even the bargain hunters, who usual
~ enter the market when low prices pre-
vail, have taken advantage Of recent de-
clnes. On the contrary, this element
has llquidated a considerable portion OF
their holdings, apparently with the ex-
pectation OF repurchaslnG them ut n
lower level Neither havc interests idcn-
titled Will, the control OF great railway
systems shown u disposition to absorb
stock thrown upon the market by dlsap-
pointed spectators. 1t will readily be
appreciated by careful observers of con-
ditions IN Wall Street that tho secret
OF tho weakness OF tho entire list Is the
entire absence OF buyers. without sup
port. either real or manipuativc. the
market has been left to its own resources,
which at present are somewhat meagre.
Tho cause OF this unfavorable sentl-
,ncnt is not difficult to trace Recent
developments have had q tendency to In
jure rather than inspire confidence. not
only in existing conditions, but in the
Z immediate future Of the situation.
LABOR PROBLEM.
Tho labor problem, which has hereto
fore been discussed at considerable length
in these columns, is attracting an unusual
amount Of attention in conservative cir
Giles, and the opinion prevails that en-
ployers will be compelled to take more
decided stand than heretofore In dealing
SSffh prda rf 1Ir1OnH ~ their hltSl-
ncsses are to be conducted OH profit
able basis Tho action OF the New York
builders Is perhaps a move In the right
direction, and may result in great good
In ilnprcssing upon certain near-sighted
hut aggressive labor leaders that capital
will not submit to unjust demands such
as have resulted in the present disturb
nnces In the building trade and other In
dustries.
The prevailing case in the money mar
ket has been caused by a lack OF demand
for funds for speculative purposes rather
than by large cash resources. The re-
quirements OF the summer may have
been overstimated. but 1t appears GER
tain that the means adopted by bankers
TO provide for possible stringency will
stand them in good stead before the crop
moving season is past
BETTER PREPARED.
Fortunately. the present attitude OF the
Western banks gives indication OF better
equipment for the coming harvest de-
fnand than ever before. Tho problem
that will confront them, however, Is that
OF untylng some OF the loans that have
been taken on during the winter. There
may be some difficulty In rapid liquida-
ton when harvest brings Its urgent need,
without assistance from tho East. How
great this need will be or how far the
West will be able to care for Its own.
still remains TO BIO determined
The continuance OF the wild speculation
in cotton has had depressing effect upon
the stock and money markets. as well
rs upon the textile Industry. The rapid
advances OF the past fortnight, coupled
chants on the Short" side In calling for
original margins, has resulted in tying
I'm q largo quantity OF money which
might DO used to better advantage than
in assisting dangerous movement OF
this sort With each advance In this
staple the stock market has shown cor.
responding weakness.
FAVORABLE FEATURE.
Western crop reports and railroad earn
tngs were the most favorable features OF
the past week. Notwithstanding the OK
cellent showing OF current Gross earnings
and the fair comparison of net. railway
officials are still looking for 30 much OF
an increase in operating expenses for the
rest OF this year that the proportion OF
net will be much curtailed. The per-
ccntage Of operating expenses to gross
earnings, which has been on the decrease
for years. will undoubtedly be enlarged.
Railroads are not planning improvements
for the future as they did n year or two
ago. Tile high cost OF labor and the In
creased value Of supplies are stu caus-
ing most large systems to curtall opera
lions In the way of betterments until
conditions are more favorable. AS the
policy of our best managed railroads Is
10 nut aside good surplus for future
dividends and Improvements, there Is 1T
tie prospect OF any increase In dividend
rates for some time
Richmonders in New York.