The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-03-09
THE FINANCIAL SITUATION.


rapidly declining one. The shameful fall
ure Of the Aldrich bill, with Its no less shame
full demonstration Of the monstrous harm
done to the business interests OF the country
! by the continuance Of what Speaker-elect
Cannon properly stigmatized as the black
mailing basis OF legislation in the upper
| house Of Congress; the insensate demands
made upon employers by labor unions
| in various parts Of the country, and the
obvious necessity-dreaded, however, by
Wall Street-of a combined refusal by
various interests to concede such AFRO
CANT and gasping claims; the rumors OF
embarrassments In the mercantile trade,
| which, although grossly magnified, were
not wholly without foundation; the I'M
mistakable evidence OF an outbreak OF per-
sonal hostility in high quarters; the con-
gestion Of the bond market, which has
reached a stage where, temporarily al least
many issues Of undoubted merit and Sc
curity are almost unsuitable; and the higher
rates for the use Of money, incident TO the
time Of year, perhaps. but very dist urblng,
nevert heless, to Spectators for rise-all
these were forces operating in no neon
siderable degree against values. Even So
their influence would not. Ia all probability.
have amounted to a great deal had It not
been enlarged and exaggerated by party OF
market operators bent upon producing fall
in the quotations Of the more active stocks.
The current impression was in Wall Street
throughout the week that the captain OF
this party was Mr.. Keene. Whether the
intense and undisguised dissatisfaction
with which Mr.. Keene, as large holder OF
Southern Pacific stock, has witnessed the
failure Of his efforts to induce those In con-
troll Of the Southern Pacific Company to
begin paying dividends on the shares has
led him to change his general market posi-
ton seems doubtful. II is understood that
Mr.. Keene's personal holdings Of South
ern Pacific are as large as ever and IL 40
he can hardly be supposed to believe that
an attack of the nature which Wall Street
credits him with making upon the Union
Pacifc-Southern Pacific management will
rebound to the injury of the Southern Pa
cifc property. Neither is it exactly clear
how the interest OF either party to the
controversy Is observed by fall in the
price Of the Union Pacific shares. Perhaps
the wisest thing that outsiders can do
under the circumstances is to let the fight
If 1t can be called a fght-proceed without
any interference on their part. 1t is one
Of those peculiar struggles out Of which
the ordinary Wall Street speculator can
obtain all the excitement that is good for
him by merely looking on. 1t would prob
ably be found, if the truth were known,
that Mr.. Keene had much less to do with
depressing the market last week than Wall
Dtrest supposed he did. There are SUBJ
stantial reasons for believing that much
the largest individual seller Of stocks, and
seller purely because of the general con-
siderations hitherto noted. was an operator
who, although a man Of large wealth and
daring and extensive Spectator in Wall
Street, is yet comparatively unknown to
fame. The furious assault upon Union
Pacific just before the close of the market
on Saturday was directed by this gentle
man. Indeed, so far as the majority Of
those who have been selling stocks that
they did not own are concerned, evidence
Is pretty clear that this party comprises
a fair proportion Of the various Waldorf,
Pittsburg and Chicago crowds who were
90 prominent in the mad attempt last sum-
mer to force up the price OF stocks In the
face Of a surely and severely contracting
money market, and who received such a
terrible drubbing as the result II their
current operations have no better basis
now than then. their absence from the mar
ket after the fact il proved will probably
be more prolonged than it was before.
There Is not the slightest doubt, Of course.
that the short interest on the Stock FIX
change Il now greater than il has been at
any time in the last few years.
OF the general causes Of mar 1t I'M
larv, mt tad hat orynip I'll a
situation is perhaps the only one that need
be discussed here. Our bank reserves are
low. but they have reached point beyond
which they do not usually decline. Some
thing always has happened in the past
when reserves have fallen as low as they
now are. TO speedily build them up again.
II is rather singular that II affairs really are
in a parlous state, call money should not
have risen last week above per cent.
Acutely and Immediately there does not
seem TO be any need Of worrying. The
needs OF the farmers OF the country for
money for Use in the spring are always
much less than they are in the fall. and the
movement Of currency indicates that the
hsa West part OF these demands for the pres
ent season has been met. The financial
situation now tsars no comparison TO that
OF last September. Then there was an
excited speculation in progress. plainly
riding for q fall. Now there has been no
notable speculation going on and prices
are lower than at any time for year. More
over. We have liquidated an enormous
portion Of our foreign indebtedness the
fac, cannot be too frequently dwelt upon
and are IN a position 90 renew our credits
N neo"sssry. In foreign countries. n our
security mATke, does "a the near future
What n generally has done IN the past under
similar conditions II will s..ll lo~er, I-srlaps,
under speculative pressure and remain duh
aud weak Tor quite little time A. th. end
~ . fe~ Ss-ks II sill h. found that strong
inisf..ts have packed up the stocks on ia.
daollh., and the money mark., sasiny,
s.nsfal business continuing its pfosIsuty
Ahd tho crop outlook sinilins iaif, the usual
sIfins rl-s IN Id,o.'. all hssln
bui u sould h. lds a. dsny that in a
aoadsf ssf-s Tia inni,ny situation 10 oaus.
ihs snHs -rrious .nsvl,n Alan from
riuilis ifIzli.ass n.aitrrs u ls tho oiilssf
tnIas ~ dls.His.lun IA oil ITO si.ai ianklns
AID ssshia,--iun ho,lsss doshiSHH. tis
qYsIy ,ak,ns ,i'.s ssn"isl foam 'hs9 49,.
~ a ussflsf ~ fafn ttlutlsli fitisi4ss suI