Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1903-06-17

Henry Clews, one OF the best au-
thorities on finances in the United
States, observed during the past week
an uncommon and unusual phenome-
non
Liquidation, he notes, has continued
upon a most mysterious scale. NO
authoritative explanation has yet been
put forth except thai bankers are now
Withholding their support from ques-
tionable schemes, that many under
writing operations recently organized
have been quietly closed in onse-
quence, and that heavy capitalists may
have taken advantage OF the situation
to further important financial opera
tons. Whether these theories be cor
rect or not, it Is plain the market has
suffered very largely under a severe
reaction from the speculative under
wr' mania OF the last three years.
&C locks have been sold to protect
4 slings. There is apparently
~ in the crop, money or labor
.~s.snati MS 10 warrant such a fall rs
NO have recently experienced. Many
gooa railroad stocks are now on a 3
n zen basis, compared with 4 per
cent a year ago, and this at a time
when there is no likelihood of de-
creased dividends, but in some instan.
ces prospect Of larger returns. Nor
cas- the decline be attributed to change
of sentiment alone. Unreasonable OPP
timism has given way To universal
caution, but extreme pessimism is
| only occasional and is fully counter
balanced by those VINO recognize the
improvement which has taken place in
intrinsic conditions. The only salts
factory explanation, therefore. for this
decline Is the forced liquidation Of a
class Of confident operators whose in
experience and suddenly acquired
wealth have led them into unsound
enterprises, which have quickly come
to an Improbable end.
Aside from the purely speculative
situation. market conditions have Ger
tainly been improved by recent liqui
dalton. According to the ordinary
standards Of judgment unfayorable in
n~uences have been amply discounted
and the favorable elements are ten
porarily overlooked. The two m1
adverse features In the general situ
alton are the crop outlook and labol
difficulties. AS for the crops, thu
worst that can be said is they are lat
and condition is correspondingly poor
There has been too much rain In th'
west and too little in the east. In thu
west, however, the damage has beef
confined to the lands bordering tn
rivers, and it Is to be remembered tina
floods never cause a famine, but ust
ally leave the soil much enriched. TIL
drouth seems likely to result in
scarcity Of hay and fodder In the eas'
though this loss IS easily compensate
for In other directions. and 1t is M
ticeable that no serious complaints ar
coming from farmers since the drout
was relieved. One thing we are sur
, of, and that Is q good wheat crop an
good prices for the same. For cor
the outlook is anything but satisfat
tory. though favorable weather durin
the next two months would do niue
! to offset the present backward COZ
ditions. Cotton is also late and in poe
condition, but the latter has probabl
been exaggerated, while acreage show
Il considerable increase. moreover, tn
4 probability of high prices continuin
until reserves begin to grow agai
means a season Of exceptional pro
4 perity TO southern planters.
While the injury to crops has pro
ably reached the worst, the labor sit
. alton also seems 10 have reached
climax. Strikes are on the declin