The Savannah morning news. (Savannah, Ga.) 1900-current, 1903-09-28
BANKER CLEWS' VIEWS.
The Financial Situation as viewed
from Wall Street.

Inc FINANCIAL Situation as Viewed
from Wall Street.
New York, Sept. 26.-Wall street is
still in a pessimistic mood and much
more sensitive to unfavorable than to
favorable developments. Bad news al
most invariably brings out fresh SELL
ing movements, While good news fails
to stimulate buying. Although these
tendencies are a disappointment to
those who believe recent declines have
amply discounted all adverse condit-
ions, the main sources of weakness are
not surprising, being still confined to
Wall street proper and not outside of
it. The decline in steel securities, for
instance, has been vastly more due to
the necessities of certain holders than
to any reaction, present or prospective,
in the steel trade; popular opinion not
withstanding. A great deal of weak
ness has also been attributed to appre-
tensions concerning the harvest, the
mOnetery situation and the probability
of a business reaction, while there is a
striking disposition to overlook the
fact that some OF these dangers are
already practically over and that
others have been thoroughly antici-
pated
The prophets of evil are now actively
engaged preaching business reaction
Such may no doubt be expected, in a
reasonable degree, but it is we'll to
bear in mind that no such excuses
have occurred in the commercial world
as were so disastrous to the financial
community. While industry and trade
must inevitably share the financial re-
to- e., f,a~~
the same degree of depression in the
former as has been endured in the lat
ter. Depression is always the after-ef-
feet of overriding or overproduction,
and when the industrial markets be-
come as surfeited with goods as the
financial markets were with securities
then we may expect serious reaction in
general business. AS it is, the latter is
suffering chiefly from sympathy with
Wall street, and also from high costs of
production. The first cause affects
new enterprises, of which we were
having rather too many, and the sec
ond is largely due to the labor move
ment Every day it is becoming more
and more apparent that industry is be-
ing checked by high-priced raw ma
terials and labor; flor consumers cam
not afford present high prices, and
some form of equilibrium between sup
ply, and demand is restored to normal.
This is not an immediate contingency
but it is one to be kept in sight; one
to be anticipated not with fear but
with satisfaction as an approach to a
more normal and substantial basis than
we have been working under for the
last two or three years. 1t is a mis-
take to think that high prices mean
general prosperity. These benefit only
the few, and sometimes mark the haste
or indiscretions of those who should
know better. The masses are benefit
ed most by moderate prices and by
moderate and better distributed profits
and more steady employment for the
larger number. 1t is a notorious fact
that hundreds of millions of construc-
tion work is held up by high cost of
iron and labor, and that moderate con-
cessions in either would impart fresh
life into a most important branch of
business; the same being true of some
other departments of industry. If this
is the sort of reaction that is now i'm
pending there is little occasion for fear.
The readjustment might cause some
temporary disturbance, and will there
fore meet with dislike; but when it is
over business will be in much more
stable condition, and sc far as the
stock market is concerned recent heavy
declines seem to have freely discount
ed this probability.