Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1903-07-28
THE FINANCIAL OUTLOOK.

The financial situation Ia the Unit
ed states just at present gives rise
TO much apprehension. Yet this seems
TO be needless. Give good crops. the
manufacturing interests all busy and
the railroads doing a big business,
the mercantile interests Of the coun
try at large need have little to fear
from the depression In Wall street, re-
sulting no doubt from unwise specula-
lions of big stock operators. Under
present conditions the weekly letter Of
Henry clews. the master Of finance,
TO The Optic is particularly interest.
ing. We quote extracts:
Has the liquidation In stocks u
its course, and what will be its ef-
feet upon general business? These
are the two questions at present up
permost In the minds Of business men.
though definite answers are impossible
under such q conflict Of opposing fore
es IS are now actively at work. n
THE decline In securities has been
satisfactorily accounted for over and
over again; and now II 10 the conse-
qnences Of that decline that cause con-
Germ. Losses have been exceedingly
severe and the fact that they have thus
far been quietly met without induc-
ing open disaster Is simply aston
ishIng. 1t Is explained, OF course. by
the other fact that the losses have
chiefly fallen upon the rich. and by
still another that liquidation while
forced has at no time been allowed
to develop symptoms Of panic. Sup
port at critical times has always
been forthcoming from big insiders
M well az from bargain-hunting In
vestors who usually appear when ee.
curities sell at or under intrinsic val.
ues. For high grade railroad stocks
with a proved reputation for dividend
earning capacity there are ready pur-
chasers on every decline; and these
no doubt will eventually prove profit
able investments. even should the
market fall stili to : lower level. Az
to the later possibility, It depends
entirely - To- the completeness Of
liquidation. and an assertion TO that
effect Is premature. 1t Is quite GER
tain that bottom will not be touched
until the weak spots have been thor
0nshly eliminated. while the bear ele-
ment. encouraged by recent success,
are likely to carry their campaign to
the extreme limit. Indications are
that the bottom II not far distant, and
that many stocks are at or suficiently
near bottom TO warrant purchasing on
a downward scale This applies, how
ever. only 10 really sound securities.
There II stiil on the market 4 mass
Of ~undigested stocks. or ~indigestable.
~ Mr.. Hin aptly described them, for
which = still lower market Is possible,
II not probable.
while 1t remains to be proved that
the OVERRIDING OF the last few years
has been sufficiently discounted, or
that the higher rates for money have
exerted their full effect. II Is import.
ant not to overlook corrective forces
| which are actively at work and the
| effect OF a good harvest, such as Ia
now within reasonable expectation,
| Wheat. corn, cotton and all import.
ant crops have made good progress
during the past month. Pessimism Is
chiefly confined to Wall street, while
all through the west. the northwest
the southwest and the south there ID
every evidence Of business activity
and progress. The railroads In these
sections are taxed to their fullest ca
paclty in spite OF recent large adj
lions to equipment. and ofhcials show
more or less fear OF a ~ shortage
I when the c~rop-uAoving season begins
II there Is q note Of hesitation any
where outside Of New York and New
EnGiAnd. II has NJ source n the ex'