The San Francisco call., 1903-12-10
MONEY IND STOCKS.
Indications That the Situation in
H'aH Street Is Clearing.

The New York circular Of Henry CIews says:
The better tone 10 the stock market antici-
pateo IN these advices continues and does not
SET appear 20 have run its course. During the
past Neek the upward movement was stimu-
lated BY a class OF buying that previously
had been oonspicuousIy wanting Large in
lerests unquestionably gave the market
stronger support and the change in sentiment
forced considerable buying on short account.
thus Developing sn additional element Of
strength. Apart however from such support
s. may have been derived from these sources
The renewal Of gold imports had a pronounced
eject upon speculative sentiment. Nearly So
oWiNVg gold was engaged this week for i'm
portstlon- making total thus far this season
The increased production or South African
mines shut on originally by the TransvaaI
war London. IN consequence. has become dis
unctly more optimistic and the revival Of
speculation m kafhrs on thsd market has ex-
eited stimulating effect upon other shares.
tne ING ilational situation as a whole has also
distinctly improved during the last few months
resulting inevitably in q better tone in hnan-
clal circles British industry shows signs OF
revival after recent depression while the in
oustrial recovery in Germany from the crash
ot Two or three years ago has also been quite
pronounced. Foreign manufscturers now co
tcrtain less fear Of the American peril than
tney did two years ago. their costs Of pro-
and the result is more cheerful feeling gem
orally abroad. which affects the financial cen
tiers iaNorably. and is finally reflected upon this
center through greater willingness TO send
rs gold. There rs bat one cloud % the for
esn norlzon. ano that IS the strained condition
of anairs ~ the Far East: though even there
no Immediate troubles are in sight.
OUR FOREIGN CREDITS
Another satisfactory element in the gold
movement IS that we are accepting actual pay
mert for our products instead Of extending our
credits abroad. as We did at this season in
lsi@ and 1901 Then. il VIII be remembered
or borrowings abroad were rising higher and
higher until foreign bankers began TO hesitate
sources. Then We kept our hank reserve in as
good shape possible by borrowing heavily
abroad where it could rot easily be detected
NQN We nave very largely ltquidated these for
eign loans, 50 that orr financial situation has
improved much more than indicated by cur
local bank statement That illuminating doc
ument sun shows loans at g very high figure
ana reserves very low. I-nQuestiOna bly,. the
banks need 10 improve their exhibits IN this
respect and scr il Is important 10 bear in
mind that the situation Is much better than
such comparisons with last year suggest. The
wholesale liquidation Of the past eleven months
has materially cut down the oTer-eXte nsion Of
credit which then existed
Activity has been chiefly centersd upon
railroads which are doing profitable business.
or upOu those roads where the growth Of traf-
~ gives an additional element Of strength.
0illeNl lnA estllelil buyers. Nho look Tor lower
rates of Interest before very long have qufeL Lly
absorbed very considerable amounts OF better
class railroad shares. which were unduly de-
pressed by forced liquidation. This rendered
upward manipulation the more easy. At the
higher prices there was considerable profit
"a king which is likely 10 increase as the rise
progresses, though thus far IL has failed 10
check the more hopeful feeling which is deyel-
10 the stock market. Cotton touched high
record prices on the short crop showing OF the
Government report and coffee now appears 10
offer attractions 10 the speculatively minded.
As FOR cotton it must be said that while the
crop is unQuestiOnablV short the price has al
ready advanced considerably above normal and
very soon the staple viii have face in
eVitable shrinksge in consumption. Coffee. on
the other hand. has been DhenOmenally low for
q series of years discOursging production 10
q point that means shorter crops 7iad better
prices until a larger growth is obtained ma
ter OF several seasons not months
THE MONETARY SITUATION.
The monelary situation is satisfactory.
Firm rates appear likely until after the Jan
uary disbursements OF the middle Of next
prevail Funds are now returning from the
crop sections. and bank reserves ought soon
10 be strengthened By this and the import
movement The January investment demand
has also 10 be taken into consideration, and is.
doubt Of the factors in the present
rise. A good deal OF interest is shown in the
Panama payment. Its effect upon the mar
ket however like all events foreseen. viii
probably be slight for the reason that tie
Government viii aim to disturb il as little as
possible while bankers viii make their pre-
psrations in advance. Evidently they see their
way clear ahead. or gold would not be i'm
ported freely.
Indications point TO increased speculative
activity for period. largely the result OF re-
action after extreme depression There is no
likelihood however. Of any extreme advances.
but rather gradual evening up of prices after
the leaders have risen 10 their limit Pur-
chasee should therefore be made with discrir-
inafion and profits secured on good advances