The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-03-23
THE FINANCIAL SITUATION.

that had occurred had pretty well dis
counted whatever unfavorable conditions
existed and that enforced liquidation was
over. This feeling was shaken on the
following Monday by a determined raid
made by speculative interests hostile 10
the stock market, which again drove prices
down as low as they had previously fallen;
and later In the week the market was DIS
turbed by fears Of Southern Pacific COR
ner' and by general nervousness over the
entire Southern Pacific Union Pacific con-
troversy. But all these adverse Factors
or at least timorousness on account OF them'
passed away, and at last weeks end COM
parative confidence was again restored
in the financial district The security
market Is still-as 1t has been for many
months-extremely professional, irregular
and unstable. The buying and selling oper-
atoms of a small number Of large specu-
Iators have had more to do with the huctua-
tons In prices than any other cause. These
men are against the market or for Il
by turns, and while by no means unanimous
in their opinions or having settled order
in their trading they yet. nevertheless,
act pretty much together. At present
they undoubtedly favor the buying side.
How long they will favor 1t Is q matter OF
yery pretty guesswork. Some OF them
hold that we have passed the elimination
Of our prosperity and that the general
swing OF our markets is downward-a
swing which, nevertheless, will be very
slow in it's progress at the beginning and at
frequent intervals, such as at the present
time, will be broken by rallies In prices,
which may often be prolonged. Others
maintain that our market Is still a rising
one and that prices Of stocks and OF all
commodities will touch higher levels than
they have yet reached. The fact which
should be emphasized In the mind OF the
casual or more or less unframed specu-
lator or investor is that market like the
present one Is an extremely dificult ono
| to @readr or to make money in. The lines
along which It moves are wavering ana un-
certain, so that shrewd men diner ~ to
the temporary or permanent tendency OF
values and frequently change their minds
about the matter. Operations either Tor
investment or speculation in such a market
are apt to be unsatisfactory.
The chief difficulty In the way OF gen
eral, broad. upward movement in prices
| is the scarcity OF money; and whether this
scarcity will be relieved or will not be re-
lieved and will produce further trouble,
is not at all clear just now. Consumption
in our country is still greater than produc-
ton, at least in the great majority OF lines
% business. There is hardly q shadow
upon business per 80. Coming to details,
the outlook in the agricultural section Ia
most promising, the winter wheat crop
having passed the present traditionally
trying month in safety thus far. while.
although the lower Mississippi Valley has
been flooded, the food has not yet inter-
fered with the planting Of cotton. and will.
IL all previous experience holds, result In
a large cotton crop in the coming season.
Proposed building operations in the spring
are little less in this city and In Chicago
than they were last year. but are greater
elsewhere. So far as the demand for all
products and manufactures goes. 1t Ii still
unimpaired and magnificent The trouble
Is that the demand for money to carry on
all this business and to take care Of the
SPECULATION incident to It IN apparently
greater than the supply; and It has been
increased and intensified, moreover, by one
or two important circumstances. One OF
these circumstances Is the high prices ruling
for the great staples, corn and cotton,
which, along with the speculation In the
commodities. has taken money out Of this
CITY In unwonted volume. Another diff
Guilty IL the congestion OF railway traffic.
Farmers, although anxious TO sell their
products, have not been able TO ship them.
Railroad facilities have broken down under
the vast amount Of business they have
had to conduct. and cars, engines and
trackage space are lacking Corn, In
particular, has had to be stored in ire
mendous quantities. So far this year the
West has had use for nearly all it's money
and has been able TO loan very title In
the Eastern cities. Beyond and above all
these matters In Wall Streets creation OF
new securities. The financial community
might have felt no pinch II It's own afYairs
had not been extended. The result. how
ever, IL that the money needed by Wall
Street and general business has not been
forthcoming. and II has been Wall Street
that has had to resign its claims.
While, therefore. there IL absolutely moth
ing on which to predicate q belief OF q
severe fall in prices Of securities. and while
there may be vigorous rallies In prices
and decided upward movements In par
ticulsr stocks owing 10 special oanses.
T, Il mus, be a matter Of doubt whether any
great boom can he considered probable
until the money difhculty has dissppesred-
tina, 10. until an additional supply OF money
has been received In Wall STREET from some
outside source. OF thsre IL such a siacken-
ing % general business that lie drain upon
the financial resourc-s ~ the country
modefaies Tho desired situation might
H. broush, about by o sui,-idenoe ~ stock
market sc'iviiy. during which our espor,
| trade would have ,ime 10 accumulate for
us forsasn credits upon which ws could
draw u 10 very gratifying fsTt
thai our espors AZ manufactures have
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