Staunton spectator and vindicator. [volume] (Staunton, Va.) 1896-1916, 1903-10-30
III. L. LANG,
StauntOn, Va.
The Financial Review

| The Financial Review
The following statement of the fnan
cial situation in Wall Street made bj
the well known banker and fnancier
| Henry CleWs of Henry Ciews & Co
New York City, is the most compre
hensive review of the situation that ha
come under our observation:
"a better undertone is gradually de
velOping on the Stock Exchange. Thi
is demonstrated BIZ the steady harden
ing OF values in the face of bank fail
ures and other unfavorable disclosures
In this respect the. market is simply
acting as usual under similar circum
stances; that is, to recover from ex
treme depression as soon DIS the wors
becomes publicly known. Those with
foresight as to what must happen ha(
already anticipated events, while the
| unfortuDates Obliged to liz uidate were
of course, removed out of the way al
| clemens of weakness. Thus 1t hap.
pened that in spite of unfavorable news
prices showed a general advance
stimulated more or less by purchases
from the short interest, which had be,
come considerably extended by recent
events.
The impression is growing that the
| decline. Of the last nine months has
been rather too severe and III the case
justified. Liquidation OF quick assets
! has about exhausted itself and slow az
sets, or ''indigestibles," are unstable,
| SO that the market is saved that ele
ment of weakness. Another symptom
~ - ;cJ
circles is the good demand for bonds.
Later on it will no doubt be found that
very considerable amounts of the bet
ter grade securities have been quietly
put into strong boxes at recent low
prices, so that the supply Of desirable
investments will be very much dimin-
ished. Just now discrimination is
particularly necessary, and as soon as
liquidation is seen to have spent it's
force the good stocks which suffered
through the bad are likely to pull
Sharply away from the Indifferent ones
and regain their normal level. FORTH
nately there has been little marginal
speculation in the industrials, which
are still lodged to large extent with
their creators As collateral also their
availability has been greatly diminish
ed, and their danger to the general
market correspondence lessened. Of
course, ultimately a r, sting place will
have to be found for these indigesti-
bles, their salvation seeming dc pendent
upon reorganization. Much of the in
evitable loss has already been endured,
having falIe upon those best able to
sustain that loss; but the most remark
able thing, perhaps, is that the break
down of the trust Systematic collapse
of the industrials Is nothing less than
that-has come with SO comparatively
little injury to the country at large.
The chief depression has fallen upon
Wall Street, and while the country at
large is bound to feel the distur bance
it's effect has been astonishingly slight
thus far.
Beyond financial precincts the out
look though conflicting is not discour-
aging. Everyone is familiar with the
fact that agriculture, the backbone of
the nation, has just secured another
profitable harvest. The mercantile
classes are also in good shape. There
has been little if any overtrading of
Importance; our merchants having es
capped the speculative frenzy which so
nearly overwhelmed Wall Street. The
least satisfactory feature in the out
look is the Industrial situation, which
is suffering from the consequences of
the trust mania and labor agitation.
Both capital and labor have been aim
ing at monopoly; both have been defy
ing natural laws; both have been work
ing OF lines opposed to the strongest
impulses in human nature. and both
must pay the penalty. Capital has
already taken considerable of its punish
nent. and labor is beginning to sac the
iueXorabie consequences of unWise
leadership. Now that the iron boom
is over the imitation based upon those
phenomena is rapidly passing away.
It must not be forgotten that we are
just leaving behind the most extra
ordinary movement in iron the world
ever saw, its chief source being the
practical rebuilding of American rail
ways Curing the last five years This
being accomplished the iron trade must
sabside to normal conditions. Posi-
| bly this may mean II period of tempo
rary prostration; but with lower prices
other demands will develop, and The
| export trade is open as a safety valve.
| Other industries are in much better
shape than the iron trade, and there
are few signs of overproductioD, The
only restraint upon business being the
high prices induced By high costs Of
production. Nevertheless, outside oil
| the above drawbacks the outlook is fol
at least another six months of gooC
business. Railroad traffic Continues
undiminished, and there are no serious
signs OF reaction in either the West Of
South. The Wall Street collapse II
likely to exercise A restraining ipflu
ence all through the country it is ever
conceivable that in some districts {
slight falling off may be experienced
but the business situation as a who'll
affords no good reason for discourage
ment. When the inevitable readjust
ment is more complete the outlook viii
be still brigh er.
Monetary conditions show steady i'm
lprovement. Liquidation is likely t,
soon result in a contraction OF loans
speculative requirements will continu
limited, and the crop movement, thongl
late. " ill soon be at its height. Les
and less fear is INDUCED as to striDgen
cY, and those who control credit ar
agreed IN policy Of conservatism. Al
ter the first week in January the none
market should show increasing ease.
It is somewhat premature to assum
that liquidation is complete and a Wig
orous bull market in sight. I e fact
are prices of good securities have falle
unduly, and now that the worst seem
to be over, for a period at least, th
market seems entitled to fair reco1
cry. Nevertheless, marginal transas
tions will have to be conducted wilt
discrimination, and profits should /
taken on sharp ralliesn