The sun., 1903-06-29
THE FINANCIAL SITUATION.


of the week, and at the end even the room
traders on the Stock Exchange floor stopped
trying to scalp profits from each other.
The general observation may be passed
upon the market as upon that Of the week
preceding, that it was firm under circum-
stances which would ordinarily cause lower
prices. This gave it the look Of market
that had discounted unfavorable condi-
tions and would not decline further save
under pressure of new and unusual sort.
The more experienced observers and con-
servative fnanciers were pretty much OF
one mind upon the proposition that any
further lowering Of prices Of established
stocks would meet with investment buying.
which would increase as prices went
down; but they also agreed that there was
nothing in sight to cause "bull mar
ket.' There wero obstacles in the way
that must be cleared and weak places
that must be strengthened before a
superstructure of confident specula
ton and investment could rear itself.
Very good stocks are cheap, beyond a
doubt But the rich mer who might be ex
pected to buy securities greedily at present
figures are now as a class, much less able
to do so than they were year ago.
The apathy in Wall Street has been in
tensifed by the erratic weather conditions
that have prevailed all over the country.
At the end of the week it looked as If sea-
sonable temperatures and the normal
amount of humidity were again approach
ing. But encouragement over the matter
had become so general that hopes of any
substantial improvement in the situation
were feeble. 1t certainly seems as if, TAX
ing the spring and summer thus far as a
whole, the weather this year had gone all
awry; and vicissitudes much the same are
present in Europe as here. 1t has had
this effect, in the first place, that 1t has
been bad for general business. Indeed 1t
has prevented the seasonabe distribution
Of merchandise to such an extent that it is
very doubtful II the trade in summer goods
this year will reach full average propor-
tions, even II the weather eccentrcties
cease from this date. June, despite all its
delights as sung by poets is often treach
erous month BIT though June is not a month
of sustained high temperatures, the ther-
mometer in the period often climbs as high
for day or two Or, perhaps for even week
az it does at any time during the year
This starts the usual summer purchases
and gives business flip. The flip this
year has been entirely lacking. The Gov
ernment report on July 10 of the crop condi-
tions existing on July will be awaited with
extreme interest and doubt as to the char
acter of the showing is an additional reason
for present hesitancy in stock market
operations. There seems to be general un-
certaintya as to whether the report will show
deterioration in the corn crop during
June; but it is admitted that If an improved
condition OF the crop is shown the improve
ment will be small. All Trustworthy data
are to the effect that the winter wheat har-
vest in the lower part Of the winter wheat
section is turning out finely, but that the
harvest is not SO good in the upper
part. Nevertheless. very large winter
wheat crop seems almost sure The
condition Of spring wheat will undoubt-
edly be lowered from that of the present
month. Drought has injured spring wheat
to some extent in the Northwest The
spectators would have 1t that the injury
has been serious but their assertions are,
rise in wheat prices does exist in the
small supplies of the staple all over the
world and in the poor outlook for the Eu-
ropean crop. All developments go to show,
as they befall day by day, that the Ameri-
can surplus OF wheat this year-and prob
ably for many years to come-wll COM
mand good though not necessarily extra va
giant prices. The trouble about the s'atis-
teal position Of wheat. as it stands, is that
while, if it we're let alone to work out as it
naturally would. it would bring positive
boom to every interest in our country, it
lends itself to corners" and similar iobber-
les in the Chicago wheat pit. The inevita bly,
disastrous effect of such operations is need
less to describe. Every one is wondering
now how the great cotton corner is going
to turn out, and there is more or less anxiety
as to the result on the general situation.
The fluctuations in cotton prices have for
weeks past ceased to represent forces of
supply and demand, and portray merely
great speculative squeeze" which is
being conducted with increasing reckless
ness as TO the consequences OF the opera
tion upon national business interests. The
cotton mills Of the land cannot go on selling
cotton on q theoretical cost basis of 9l5 cents
or 10 cents a pound for the raw material
while the material actually costs l3 cents.
So the mills are shutting down. 1t is fair to
say, however, that the effect Of the matt or
upon our exports of cotton has been, so
far. popularity exaggerated. For the nine
months ending in May cotton exports
amounted to IL per cent. more in value and
nearly "a per cent more in quantity than for
the corresponding period OF the preceding
year. Since then, of course, the exports
have fallen of, but careful estimates still
are that we may get as much for our cotton
in the whole twelve months as we did in
the record year, 1901.
The labor situation too, has assumed
a more unfavorable phase, though perhaps
it has seemed to be more unfavorable than
has really been the case by reason of the
disappointing outco me of matters in our
own city. For two weeks past, up TO last
Monday, all app earances were that the
troubles in the building trades were on the
point of settle ment. Both sides seemed
to want to end the difficulty, and to end it
permanently, but, at the last, negotia-
tions were broken off and the labor unions
have now pretty we'll tied up building
operations. great and small throughout
the city Universal sympathy is expressed
by all right-thinking people with the stand
taken by the employers, that the corrupt
and outrageous walking delegate system
shall no longer be permitted to work havoc
with plans OF business construction in the
-l.,.