Omaha daily bee., 1903-02-16
SLIGHT MARKET SETBACK
Fear Of Gold Exports Serves 10 0hsOk Spec
ulatiOn in Small Degree.
ARGE SCHEMES WAIT FAVORABLE TIME
Spring Trade Promises 60 Keep Up to
the Former Level and Railroads
Hardly Able TO Handle
the Traffic.

NEW YORK, Feb. 15.-(Special. )-Henry
Clews, in his weekly Wall street letter
says:
The stock market showed during the
week all undercurrent of Improvement. ex-
Cepting just at the end Of II, the favorable
factors being easier monetary conditions
and the tremendous pressure OF traffic upon
the railroads, demonstrating continued
business activity. lhere were also signs
of powerful inside support on the part of
those who have important deals awaiting
contamination. The setback which came
on Friday was due to the fear of gold ex-
ports and unfavorable criticism of the Erie
bond. scheme. Just now there is a very
satisfactory state of inertia among the
more reckless speculative cliques who eu-
deavoTed to push operations TO dangerous
limits Sst summer. q Whether this is due
on their part TO a less confident spirit or a
vivid recollection of the disasters of last
fFl is not yet, made known, but 1t is very
evident that the market is under powerful
control and thai those at the helm believe
in q conservative policy. The market big
leaders are. evidently interested In the d.
rection Of better prices so that II seems
likely that values will be made to have an
advancing tendency In order to inspire
public confidence and thereby admit of
widening the distribution of securities Tne
prospects therefore for a spring rise seem
to be fair; In any event, the market should
grow more active, and favorable develop
ments would undoubtedly stimulate buying.
1t must not be overlooked that number
of important deals are in progress whose
elimination is simply awaiting favorable
opportunity. Such opportunity generally
offers when money is easy and in ample
supply at this center. These events will
probably be important If not dominant fac
tors I'm the situation; unless, of course,
unforeseen eyents of an untavorable nature
occur.
Not without Uncertainties.
The outlook, however, is not without its
uncertainties and drawbacks. Money mar
ket conditions are better, but not entirely
satisfactory. Bank reserves are about at
the same level as last year, but April set
Elements will soon have to be anticipated,
and after that the new plan Of creating 10
per cent trust company reserves must be
met. This will take S4O,O00,O0O of cash out
of the market diminishing credit. of course,
several times that amount, and while 1t Is
to be done gradually-5 per cent by June
l and another 5 per cent a Jear later-with
the least possible effect upon the money
market, still 1t will inevitably tend to
restrain very easy rates II IL does not dis
tinctly harden them. Obiging the trust
companies, particularly the new ones, TO
carry moderate reserve themselves is
wise policy ana In the interest of the
whole community. The strongest concerns
already conform to the recognized usages
of prudent banking in this respect, and If
its enforcement causes any temporary In
convenience, which is not at all certain, II
should be accepted as a guarantee of In
creased safety. There Is no other disturb
ing element In the monetary outlook until
next fall, excep. gold exports or an undue
locking up Of funds In the treasury. AS
to gold shipments, there 10 no reason for
any uneasiness IN this respect while ex-
ports of merchandise continue so heavy and
In view of our diminishing obligations in
Europe, where conditions of ease now pre-
continue exceedingly heavy and the con-
sequent increase of customs receipts
threatens to renew the accumulation of
funds in the treasury. Unfortunately. there
is no prospect of scientific OF thorough
legislation on the currency bill this session
of congress The Aldrich bill, which may
pass is a purely temporary measure for an
emergency, offering some relief in case of
a repetition next fall Of last seasons string
ENJOY. but in no sense providing PROVIDING a stan, peTma-
Instead of taking the treasury out of the
banking business IL leaves the ma rket
single government official at critical
period instead Of regulation by natural in
fiuences which all can measure
Spring Trade Outlook Good.
Spring trade promises to open under
favorable auspices. Consumption continues
on an unprecedented scale, factories have
an abundance of orders, and the railroad
system is almost broken down under the
pressure of traffic. Labor is actively en-
| ployed at the highest wages on record, and
! the only element of warning in the indus
| trial world is the large Increase In costs
| OF production. This is a factor that sooner
| us into closer competition with foreign
| producers where cost Of labor and ma
| terials is much, cheaper. Such reaction
| is not yet in sight but II Is not far distant,
| and may come sooner than expected II
| these costs are pushed any higher. The
/ moment prOduction OVertdkeb consumption
! the reaction will begin and 1t can only be
| delayed by prudent control of both capital
| and labor.
The market promises to be stronger in
| spots many stocks are already sufficiently
| high and only few low priced issues re-
| main 20 go on the dividend list. These and
| the stocks affected by various deals pro-
/ mise to be the speculative favorites. Pur-
chases, therefore should be made with
| the sharp rallies. favorable factor is
| the approaching adjournment Of congress
| on March 4 and the prospect of no radical
| ANTITRUST legislation during this session.