Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1903-07-07
CLEW'S REVIEW
Much Better Feeling in the
Money Centers Of the
Nation
$780,
|REACTIONLESSENIN
Nothing Discotraging except
Backwardness in the Outlook
for Crops-Big Wheat
Harvest.
MONEY AWAITING INVESTMENT
Special 10 The Optic.

Special 70 The Optic.
NEW YORK, July Heavy June
disbursements, improved monetary
conditions abroad and a temporary
oversold condition Of the local stock
market induced a fair recovery in val
ues and a consequently better feeling
on the Stock Exchange. The chief
obstacle TO further activity was the
approach Of the holidays and an in
disposition to carry stocks over d two
days interval.
We are now approaching the usual
period OF summer quiet, when abund
ant opportunity is offered for studying
the probabilities upon which Wall
street always waits before taking the
initiative. The first six months of
1903 have been a period Of severe and
thorough liquidation. What about the
next six months? The reaction follow
ing the underwriting and speculative
craze of 1902 came sooner than an
ticipated, as reactions of that nature
invariably do; and the questions now
pressing for solution are: Has the re-
action eliminated; is liquidation over;
is the readjustment between supply
and demand, or between quantity and
value, complete? To be perfectly
frank, we do not think the adjustment
is complete. A number Of good secur-
tiles have come down to intrinsic val
ues, where investors can take hold
with confidence, but there are still
many of the newer creations selling
at inflated figures-held up by sheer
force-which have yet to face the test
of trade reaction or diminished prof
its. 1t is just here that careful judg-
ment must be exercised in estimat-
ing the future of the stock market.
While the period of special stress in
financial circles is over; while the
situation is better than it was six
months ago; while all prolonged down
ward movements are accompanied by
rallies such as the present, still these
facts furnish very little guidance as
to what may be expected between now
and the close Of 1908. As we have
stated in previous advices, the domi-
mating factors will be the crops and
money. Political campaigns may have
to be taken into consideration, but
these at present do not threaten any
very serious problems. The labor agi-
tation has proved a serious burden
upon industrial enterprise, the full
effect Of which remains to be seen
but indications are that such demands
have at last reached a point where
self-preservation prevents further con.
DECISIONS, and the next six months may
demonstrate whether or not business
will stand the new exactions.
In the crop outlook there Is nothing
discouraging except backwardness. In
the case of corn this is Of consequence,
because 1t increases the danger from
frost, and the prolonged absence Of
high temperature Is unfavorable to
corn. Six or eight weeks OF warm
weather, however, would work great
changes In this crop. For wheat we
are practically sure Of a plentiful har-
vest, together with a good export de-
mand at profitable prices. Cotton is
also backward, but as a result the
plant has good roots, is vigorous, and
under favorable weather conditions
could produce a bumper crop. The
crop situation, therefore, may be sum-
med up In the statement that good
or normal weather during the remain
der Of the season would yield US an
| other satisfactory and profitable har-
vest. Since we have just passed
through two months Of abnormally
bad weather, 1t seems perfectly reas-
enable to anticipate more normal con-
ditions in July and Augustine grow
ing months.
The monetary situation 10 really bet
ter than anticipated, chiefly owing to
severe stock market liquidation and
the reduction Of our obligations
abroad. The banks throughout the
country are about as well OF In re-
spect to reserves A. they were . year
ago, the percentage Of legal reserve
to deposits in all the national banlz
being 22.OS on June 3. 22.ss on April
q and 22.22 On Lux Ia. 1902 National