The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1904-01-02
CLOSE OF THE YEAR
Henry CIews Writes of Finan-
cial Affairs.
OLD YEAR CLOSES WELL
Affairs Are in Sounder Con-
dition Than a Year Ago.


New York, Jan. Henry Clews, whrit-
Ing about the close of the year, says:
No special activity can be expected on
the stock exchange until after the holi-
days or until the plans and changes in
cidental to the new year go into effect
The old year, however. closes in better
and sounder condition than it opened.
values being upon a much more stable
basis than year ago;swhile the enor-
nous losses during the year, unfortunate
as they have been to many, have had the
very desirable effect of stopping reck-
less promotions and speculation. PROPOSE
tons that would have been eagerly taken
up in bank parlors twelve months ago
could not today secure even a respect
full hearing, and there S little prospect,
If any, Of a renewal of the daring opera
tons which eliminated in the rich man s
panic of 1903. We are now undergoing
the process recovery from sharp attack
of syndicatisis one of the modern mala-
dies. Improvement is not likely to con-
tinue without interruption; but drastic
remedies have been applied, and as the
patients constitutional vlgor has not been
impaired the return to normal health
ought not to be far distant.
The money market is no longer SUBJ
ject of anxiety. and the much feared strin-
gency did not appear during the crop
moving season. Like nearly all foreseen
disturbances it was averted by anticipa-
ton Funds are now returning more freely
from the interior; so that, barring any
furry incidental to dividend and other
disbursements January LIST, bank aver
ages ought to rise for the next two or
three months Gold imports have also
been on a fairly liberal scale, and in
ternational trade conditions Indicate that
this movement has not ended, although
easier money rates here would quickly
stop the influx. Our bank loans con-
tinue at a high figure Of the situation.
Bankers, however, show no uneasiness
over the loan situation, being amply pro
tected by good collateral. No doubt the
loan account is considerably expanded by
syndicate borrowing, several of the
stronger of these organizations having
been continued beyond their original time
for the purpose of iquidating at moro
favorable opportunities. Weak syndicstcs,
and there is no doubt but that borrow
ings of this character have been very
largely diminished and that the money
market situation is mucn stronger than
for one or two years past; the contraction
of loans being chiefly in the foreign ac-
count and therefore not appearing in the
bank statements. Secretary Shaws in
disposition TO continue bond redemptions.
owing to the small offerings under cir
cular of September %, is practical DEM
onstration that there is now no anxiety
concerning the money market in either
official or banking circles.
One of the most satisfactory features
Of the week is the more settled condi-
lions in the iron and steel trade. Since
the decision of the billet pool to main
tain prices a distinctly better tone has
developed. and now that the prospect of
a further reduction is removed orders
which have been held back are likely to
be gradually forthcoming. The full bene-
fit of this act will probably not appear
until the new year has fairly started.
Should money market conditions favor
and labor troubles be avoided, we may
see partial revival of the iron trade; not
on the feverish scale of 1902-03, but upon
a more reasonable and stable basis of
profit. There is plenty of work in the iron
trade to be done at a price; though such
rush of orders without regard to cost as
was experienced last year will not be
seen again for many day. Many of our
recent difficulties can be traced to the
steel boom. return of which would not
be prosperity but calamity in the end.
There is enough business in sight to keep
the mills employed at present prices for
months to come.
The speculative situation is certainly
brighter. and a very fair rise has been es-
tablished. but the short interest consider
ably diminished. so that while the outlook
is promising buyers will soon begin to
require fresh stimulus in the form Of new
favorable developments. Stocks are now
concentrated in strong hands and evil
IDENTIFY held for higher figures. standard
railroad shares being a purchase on all
recessions of Importance. Rumors Of war
between Russia and Japan attract at
tention. but the effect upon this market
has hitherto been slight. Neither If these
powers is likely to borrow here for the
reason they can do better in Europe. The
probabilities of an outbreak are yet too
uncertain TO cause serious uneasiness;
still the contingency should not be over
looked.
CANAL BOND ISSUE.