The St. Louis Republic., 1903-09-21

of pig iron has not been accompanied by
a heavy increase of iron until sold and
the reduction in the prices of finished
In other wcrds.-wfile the business Is cas-
ing down, a feature which will develop in
other lines later on, profits as yet, accord
rapidly enough TO in themselves account
for the ruinous decline in the price Of steel
stocks.
OF course, the Steel Corporation has to
contend with a gigantic capitalization, and
that, under Its new organization. has never
been tested in times of adversely. It has
to contend, also, with the popular fetch
that q relaxation in the price of iron and
steel is the necessary and infallfble pre-
cursor Of a period Of business depression
The Steel Corporation comprehends with
in itself ability to meet changed conditions
possessed by no other similar organiza ton
on earth Whatever mistakes have been
made IN capitalization, or in the unfortu-
nate biunder Of converting the preferred
stock into bonds. no one can doubt that
the concern has been honestly and ably
managed. and that IT opposed an inordi-
nate advance in price when il could have
obtained it It IS not conceivable that its
edge Of the management. be other than
honest. and that IL possesses the surplus
of s25.0J10e0 which II reported
DEPRESSING EFFECT ON MARKET.
Nothing throughout the trying twelve
months OF Liquidation has had more de-
pressing influence on the markets than
the steady bearing down Of these securi-
ties. which are IN the hands of so many
persons of slender means. entirely ignorant
of the pitfalls OF a speculative market
There are men in Wall street who have
maintained that there was no such thing
as overcapitaltZation and that stock ad-
tusted itself in the market to its intrinsic
value Such may be the case when con-
fidence Is abounding, but when it IL shat
opments, such as the community has oD-
served in the Industrial companies in re-
cent months, some evils Of oyercapitaliza-
ton become clearly apparent
II there are other weak spots, such as
is believed have been uncovered in Pitts
burg, It is probably the near developments
In the money markets which will bring
The bank statement OF Saturday was ac-
counted favorable. and was so TO the ex-
tent that loans decreased A.5Z7.900. But
enough that the demand for money, long
delayed this year by the lateness Of the
crops. is setting in end is likely TO in
crease in volume. Although in the S13,1l3,-
625 OF surplus reserve the city banks are
1ar better on than year ago TO meet
the harvest demand, the banking position
is not strong.
Secretary Shaw has given assurances
that In case the business community
stands in need the Government will render
assistance in a variety of ways An ex-
pedient. In time Of necessity, is a good
thing, but 1t is not prudent to lay out
very extensive plans If situation .; so
strained or likely to become so where eN-
traordinary relief measures are made
necessary
AS to the corn crop. 1t is unmistakable
that some injury has resulted from the
frost and unseasonabIy cold weather Es-
Inmates Of loss current at the outset of the
week were probably grossly exaggerated,
and the grain markets in their subse-
quent declines took that view of the re-
ported injury Still the crops are very
late. and the weather of the week clearly
indicates that the present Is not a time
for overconhdence as to the outcome The
entire situation makes for extreme eau
ton