The San Francisco call., 1903-12-17
WALL STREET OUTLOOK
Brighter Conditions Peroeiged BY
Great Financial Interests.

The New York circular Of Henry Clews says:
History is again repeating itself and after
the severe financial depression OF the last
e-e'en mouths The year ls closing win a re-
ccNeTy that SURPRISES those not familiar with
the elasticity of American temperament. Gloom
has suddenly disappeared. and in its place a
caimer vision Is gaining sway. except where
speculative enthusiasm causes too violent
swing az lhe pendulum old time activity has
appeared the stock Exchange. and seems
likely 20 stay, FOX period az least sharp ad-
Nalces occurred, some OF them too sharp; yet
me whole trend of affairs for the last four
Neehs proves that important changes for the
better have taken place in the financial world
strong support has been given the upward
movement OF late. there being a marked absence
NJ The uQuidating sales which efectually killed
every preceding effort for the rise This clear
ly oernonstrares that the great Liquidation
movement of 1898 is az end and explains
the assistance given hE powerful insiders, whose
confidence is of course restored by knowledge
that the weakest features have been eliminated
The rise has unQuestiouably been greatly stimu-
lated by fright among the shorts. who had be-
come altogether toe Numerous for safety; and
professionals quickly ranged themselves On the
side Of activity. Several important bull pools
appeared 10 have been formed, and 20 these
were attributed the fluctuations in some Of the
speclaltles, Yet all of these movements were
based chiefly uDor changed conditions in the
speculative situation chief OF which was salts
factory evidence shat the seyerest lQuidatng
movement The stock Exchange had ever wit
messed had run ITS course What wonder
then. with Tho chief source q anxiety removed.
that t1e market should show an unusual re-
CONDITIONS IMPROVING
Aside. however. from purely speculative con-
cirons. Do is proper to consider the larger in
1uences which rule the stock market in the
loug run Taking it for granted that prosperity
reached Its zenith iu 1902 and that neither
-31a nor 1908 VIII equal that marvellous year.
% rs ur-e- folly 90 expect that general business
wiz experience any reaction corresponding TO
me downward plunge on the stock Exchange,
which carried "a lUes down 30 10 80 per cent
That decline was due 90 causes too well known;
and. nov that these have been discounted. il is
but rea soma Bic for values f0 recover 70 a oirt
aeton that has 81 far taken place in business
In some helds 0f enterprise that reaction may
"u-Ie Len eosls OF ma
--lale 2 nd lapoi nave imposed prohlbitiFe con-
e lions hur, as rhese come back 70 the normal.
deferred projects VIII be resumed and pros
penny N.-. i9iioM upon a more normal basis
t1en for flc last Few wears. Already the iron
t-ade is beEinniug 10 feel the stimulus of lower
prices lfIs getting back 10 normal. however.
is always au uncomfortable time for those who
anf6scnize Dr. and is likely 10 be the bottom
FACTOR .r future movements. The stock market
plunged from am 1fnorrnsIfy- higf 10 an sbr'o-
rral.T Tow Jewel. and III is not only seeking
its oHn proper status. bur also adjusting itself
lo business conditions with which it has long
been grossly out of tune. our agricultural
CLASSES ln All parts 0f the country are stiII en-
ss gnus4al prosperity, and there win be no
-1.n RI ffni 'o5ment Tor labor when wages and
-i.7--r-ais ger upon p reasonable basis
THE MONETARY OUTLOOK
sll2 imports are eNerting an important in
nl--lce upon speculation. Thus FAR about SI7-
elelN has arrived and engaged 10 come to
tlls sloe and more Is expected 10 follow. Com
t.aaA'.A7 ar llrialil|delLE TO Imports,
N-L favorable lQ exports; some of our products
tlrh ss cotton. Tor instance. being taken freely
sl e2c1p 1ptiolsily high prices This should Gre
ste favorable trade balance and continue TO
improve OUT credit abroad. which is already In
much better position than year ago. The To-
ca- monetary outlook o. promising There IS
me possibility OF a furry between now ana the
year arising from preparations for heavy divl-
cehq disbursements etc. but afterprard the
ifntenty should be- toward easier money unless
STOCK speculation becomes Too active EN,.r5e
NitharaNn for crop purposes are already re
turning, ana January should see rising average
-or the surplus reserve Otl- Fo,ro---f,7--
abroad are much less than a year ago and ms
improvement 10 tho money situation should NOT
b. forgotten lOt