The San Francisco call., 1903-12-31
THE FINANCIAL OUTLOOK.
Money and Merchandise Markets
AO1o Considered 0H q Stable
Basis


The New York circular OF Henry cieWs re-
rects me general Wall street view OF money
ard trade AS follows;
s.The old rea- closes in better and sounder
condition fhsn r opened values being upon a
much more stable basis than year ago;
while abe enormous losses during the year.
unfortunate as they have been 10 many. have
had tho very desirable effect of stopping reck-
less promotions and speculation. Propositions
that would have been eagerly taken up in
bank pariors twelve months ago could not to-
Gay secure even respectful hearing, and
there is uttie prospect II any. OF renewal
O. The daring operations which eliminated in
rle rlch mans panic OF 1903. We now un-
C.rgalng tre process of recovery rom sharp
a.iark ot s'nliletits one oL me modern maj
aides. improvement is not likely 10 continue
without interruption, bur drastic remedies
haze been applied and as the patialt's con-
stltuuouli EiECr has not been impaired the re-
tulu to normal health ought not 10 be FAR
.The money market is no longer subject
of anxiety. and the much feared stringency
oll mon appear lurng The crop moving season.
LIKE rcary al foreseen disturbance it was
-e- ut a..ieii 4-ton. unos eIe no" re-
rurninE more freely from tho interior so that.
nafne eH2 hurry incidental no dividend ana
t-nei ..-ntl-ffaefts ts January 3. hank average
ought rise tor the next Two or three months.
Go.c imports have also been on fairly lib
eIal sale and international trade conditions
irdiea-. rhar This movement has not ended.
aIrhcurr easier money rates here would quick
lr .-ta- The .rFux our bank loans continue al
hiEr 1Eure. this being one Of the least sat
E--l-- $500 e. ssr-,,s- 80 - 1osr
stua n being amply protected 10y good col
laffrs. 30 doubt the loan account is c0nSid-
erahl- expanded hy syndicate borrowings. sew
era ne stronger ot these examinations
haflre been continued beyond their original
liine r tle purpose NJ hqlidatPg at more
latri1-e cfPgftunitles. Weak s9ndicates.
foNf E nave been enectlally closed cut ana
there - no doubt that borrowings of this
cfaff Ger have been very largely diminished
and -rat the money market situation is much
rcltla-rion OF loans being chiefly In the for
- a-'-al . ana theIeiore not :. sppearing IN IN
to 1rl sr-sIi 5fferires linder ei-r,fiar OF sen
teuhar % is practical demonstration that
there IS now no anxiety concerning the money
market in either official OF banking circles.
IRON AND STEEL CONDITIONS
zone Of the most satisfactory features OF
the week is the more settled conditions ia the
iran and steel trade Since the decision Of
The billet pool to maintain prices a distinctly
better tone has developed and now that the
prospect of further reduction is removed
orders which have been held back are likely 10
be- gradually f1-thcomirg. The full benefit
~ rr.s act VIII probably NOT appear until the
new year has fairly started Should mPney
r0.icd. we may see partial revival Of the
.r1u trale- nlL ou rhe feyerish scale OF 1902-03.
huL upon "a more reasonable and stable basis
q PROM There is plenty ~ work IN the iron
trade to Boz done az price. though such
rush o( orders without regard 10 cost was
experienced last gear VII not be seen again
f1r many day MANY of our recent Difficult
Ties can be- traced % she steel boom a re-
turn ~ which would not be prosperity but ca
,lsmity a the end There Be- enough business
in sight t0 keep the mills employed - pres
-ent prices for months 10 come.
TIE SPECULATIVE SITUATION
The speculative situation is certainly
brighter and very fair rise has been es-
tsolisnec bUr The short interest considerably
diminished so that while the outlook is prom
ising nul ers Uil soon begin t0 require fresh
stimulus in The form Of new favorable devel-
opneftf stocks are now clnceutrated in
strong hands and evidently held for higher
rEures standard railroad shares being a pur-
chase on an recessions of importance Rumors
of war between Russia and japan attract at
ffution. iut the effect upon this market has
hitherto heen slight. Neither - these powers
is likely ro borrow here FOR the reason thar
they can DO better in Europe. The proba bill
ties ~ az outbreak are yet too uncertain 10
cause serious uneasiness- still The contfnVenry
should not be overlooked ''