The San Francisco call., 1903-01-04
Some Ne1U Years MOralisiHg.
a 1EET YORK E-I'SAoSCIER ELIMINATES ON
TIE CURRENT CONDITION or
MONEY TRADE AND
STOCKS

The Sew YORK circular q Henry CieEs says
Three or four months of persistent and Sc
we're Liquidation have eKerted a sharp, sober
lng ELECT ia Wall street Enterprises that
aould readily have been underwrlrten several
tlnez over could not now obtain even a hear
iug- The conviction that halt Is necessary
~ h0ancial operations. and that e thOroug h
taking of stock must be patiently endured Is
O1e of the most striking features OF tie day
This Uitrac0nserVarive mood which began near
lie top. where recent eKcesses were most
fleely INDUCED. has permested through all
The various levels. until now the smallest
OPERATOR IS proud OF his conservstisEl- As q
ruls. when wave OF opinion has run this
extreme. 20 Is wise 70 ask II Il has not ex-
hsusted Itself We have nov had q drop OF
1880 points n a majority OF good securities;
rhe speculative mania has been wei sUbdued
n consequence; severe liquidation has taken
place without disaster: our debt abroad has
been materially reduced. and our financial sit
uerion IS certainly less threatening IL not
much stronger than six uozths zgo. That such
leng-hened and severe liquidation could take
pace without bringing serious disaster is re-
rngrkable proof Of the soundness Of the coun-
trg's trade and industry outside Of Wall
street. where the overriding mus Far has been
chiefly confined
Among the favorable conditions outside Of
financial circles are these The activity OF
senera4 trade the prosperity Of the laboring
classes. the sustained demand for iron manu-
- ct1res showing new development and COR
6trlcuon eFcfyN here the prospect Ct larger
exports 0f corn and cotton. and the continued
large gross earnings Vi rh- railroads which
VIII soou be sweIIed by advanced tra efc rates.
The Western roads are still OvercroNded with
traffic Ia these respects We enter the new
year under favorable circumstances, the prob
ability being that there win be no lessened
sctiElty provided prices are kert at a reasona-
bic level and expenses are rot unduly in
creased Business profits have already been
s=rlolsiT Threatened ~ the advances II ma
te-ials ana wages and further Increases in
these tpsrticulsrs would be a menace threaten
ing natioual prosperity.
The monetary situation viii be the chief
cause ot concern during the next few dsys
Ln1er present stringent conditions prepar a
ions Tor January disbursements are quite Ike
ly 70 cause Temporary Inconvenience; but the
formation of the $4,000 Oou loan pool viii NO
Gou5t be ample 70 provide against any ener-
gencF- by the middle OF January local con-
cl-ions should begin 10 improve as funds will
shortly be returning from the interior more
rreelv There is no carly r,rosuect f,rvreV-ar
% easy rates; and the influx Of currency may
easily be delayed by the activity OF trade and
speculation in the West. Another factor that
lllUst be recEoned E-ith is the prospective early
lseue Of large foreign loans. which would have
been put on the market last autumn but FOR
the situation iu New York, which has since
been partially relieved An important Trans
vaal loan is 70 be expected although this
operation may be largely confined 10 funding
TIE Treasury biIis issued during The war into
fixed obligations. This transaction. Therefore
is not likely 70 De 50 important a factor IN
the International money markets as the new
-f-l-L -oal. preparations Tor NI-cn are now
Being made. and which IS expected 70 aggre
safe between $3.50. O00. .O00 and $500 COS. .Oc0
MS suggests a large Withdrawal OF French
-Lnls from rhe London money market and. as
collzld derahle Spanish loan in London IS to
-DlDW The French lcaE firm money rates will
irefal In London fer some time 10 come
" hether This VIII hasten gold exports from
-lis sl1e OF not remains 70 be seen Our debt
aDroal Las fortunately been much reduced
enl u Europe would only invest in good
American railroad securities with more free
com the advantage would be mutual British
railroads now pay such small dividends and
aye SO obsolete IA their methods that American
ra--road shares shine IN comparison. IRE
English railroads VIII have 10 be Americanized
5efore they can again become good invest
nenlH lis means enormous OUTLAWS for in
lrol enlenrs 1nc new eIuipma mt things which
have already been done by the American
roads The British investor could do nothing
better tEsn exchange his holdings IN obsoiete
lo" -llflden4 Ens-sl railways Tor modern
moderate dividend paying Americans.'s