Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1899-1903, 1903-01-22

VI any consequence, Jul PSiLSSeiy
willing to permit fluctuating market
in which values will gradually find
their natural level. This firm but con-
sentative control of the market by
powerful interests is the striking fea-
ture, and in some respects it appears
to be natural outgrowth of the pol
icy of concentration which has been
going on for the past few years. What
ever may be said OF the vast combina-
tons recently created so long as main
tanned they certainly possess I'M
mense steadyipg powers and are
positive check upon violent fluctua-
tons, though incapable of preventing
ordinary ups end downs.
AS to the monetary prospects, the in
dications are for lower rates than pre-,
vailed during the last three months of
1902. Until the crop demands assert
themselves there appear to be no shoals
ahead save the April settlements,
and the July disbursements. For the
next nine months there should be fair
ly clear sailing if speculation is kept
within reasonable limits. Nevertheless
the supply of loanable funds is not
likely to prove over-abundant. The de-
mand for capital from new enterprises
is enormous, and the inelasticity of our
currency system tends to encourage
firm rates. Two very significant events
have recently occurred-the floating
of S25 100000 of one year notes at 5
per cent by Lake Shore; Endorsed by
New York Central. and the large issue
Of Pennsylvania equipment notes on a
Az per cent basis. Both of these cor
tinnc tho hi OH nrniit
and are considered towers of financial
strength, yet they are paying fully 1
per cent more money than they would
have done twelve months ago. The
fact is there are immense amounts of
corporation paper held by strong insti-
tutions; and, in view of the big deals
contemplated or in progress, there is
little probability of any superabund-
| ance of funds for some time ahead.
| Bank reserves should show a steady
rise during the next few weeks, and the
tendency ought to be towards easier
rates; but it is plain there will be little
to spare for extravagant speculation.
In other respects the stock market
situation is improving. Railroad earn
| ings continue to show gratifying gains,
traffic is still phenomenally heavy, and
| in spite of the great additions to the
rolling stock, the railroads remain un.
able to properly handle the enormous
amount Of freight pressing upon them.
Nor is any let-up in sight. All this
means is that the industrial activities
OF the country are unchecked. Con.
sumption is going along at high wa.
ter mark, stimulated. of course, by the
active employment of labor at good
wages. Production, also, as a rule, is
being carried on up to the fullest limit
In fact. the whole country is steaming
at high pressure with industrial devel
opment, the only sources of complaint
being the declining profits of business
and the late over-eXpansion in the fin
ancial markets. From the latter
trouble we are now fortunately recov.
ering.
Some improvement can also be not
ed in the foreign markets. France
has shown uneasiness owing to inter
nal political troubles, but there has
been partial recovery in Germany
from the industrial depression of 100,
and 1902, and in Great Britain a mucl
more confident temper is displayed
Prostitution following the Boer war il
gradually disappearing, and British en-
II terprise shows symptoms of revival
Thus far these changes have not ex
pressed themselves in any return O
demand for American stocks, distrus
of American financing still being deep
!; rooted with the foreign investor.
prolongation of activity on this sid,
the Atlantic may, however, change
/. foreign opinion, especially as We hav,
| largely reduced our Indebtedness
: abroad and shown very recent
striking ability and resourcefulness il
meeting crisis.
: Antitrust and tariff agitation ar
a not favorable to the stock market
: Recent events connected with the Goa
! crisis are also calculated to create pc
), litical disturbances. These are inf1u
4 ences on which the investor, and es
t pecially the Spectator, must keep
i close watch. 1t must be confessed, a
: SO, that many stocks seem excessivel
: high and not very attractive inves
ments while money continues at it
present level. If money remains dea
these high-priced stocks will have t
yield, unless better dividends are i
a sight. On the other hand, there az
: plenty of stocks which have not ha
9 an advance corresponding to their in
;, proved condition. By careful discrin
ination such stocks can be picked II
!, at profit, for we are likely to hav
:, an irregular market offering good Of
! a. e.. IT,