Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1904-04-12
rae FINANCIAL SITUATION.

Throughout the financial world the
feeling was general a few weeks ago
that an adverse decision 10 the North
ern Securities case would result In a
decided decline In the securities mar
ket. The continued strength which It
has manifested since the decision has
consequently been the ground Of much
surprise and various conflicting theor-
les have been offered In explanation.
The real explanation. according to no
less an authority than Henry Clews,
as set forth in his weekly letter to
The Optic, is as follows:
The destruction or the Northern Sc.
curities plan deprived the big railroad
magnates OF any other means Of pro
tecting their interests than a sincere
and rigidly maintained community Of
interest, dependent entirely upon the
integrity Of the individuals most on
ccrned. A contest for control was be-
yond question, the consequences OF
previous attempts In this direction
having been altogether too disastrous
TO risk repetition. There vas but a
single course open, and that was TO
preserve the communlty-of-interest
idea until the points at Issue could be
Settled In the courts. II was the
knowledge that such must be the pol
Icy Of the big leaders until a settle
ment was reached, that was at the
bottom Of the rise which began with
the decision Of the supreme court, An
added stimulus, of course. was the fact
that all the merger stocks were max.
Ing excellent financial exhibits, some
OF them earning more than double
present dividends and making their
purchase for either representation or
control doubly attractive. Il should
be remembered. however, that the
community OF interest plan, as II now
exists, Is simply a tranaitory measure,
and dependent solely upon the integ'
rity Of n few men. As long as they
continue 10 hold together Il will work
wen, not otherwise. II Ii also well
to remember that stocks have had Q
very substantial rise on this issue
and that profittaking Or change of at
titude among the big holders may pre-
cipitate reactions.
AK d result of recent advances 1
much better feeling exists in financial
circles, Notwithstanding many unsat
lsfactory features. II Is quite evident
that the country Is going through |
period Of business reaction, which be
gan al the east and Is slowly travelling
/ westward It's greatest severity seemi
i 20 have been felt on this side Of III,
q Mississippi, and there are alread.
signs Of recovery which are more q
less encouraging. AZ the west dcpres
| sion has been much less severe, hu
seems destined TO run It's course unit
X disappears On the Pacific coast
/ Both railroad earnings and clearing
house returns. rs well al business re
ports. testify ii "a this reaction, an
The great wonder Ii that IL has no
Q been moro severe. considering the III
1 hoayals that have taken place In III,
! financial and liz the labor markets
The latter are fortunately abating, an
the quick resumption Of revival ter
denotes Is satisfactory proof OF th
soundncss Of business AFFAIRS In ger
1 crnl The cost IL living n very higi
and a good many men are thrown on
| Of employment by labor troubles o
1 other difficulties: but the readjus'
Y ment process Is fairly under way. an
u Is likely 70 continue until the basi
{ of d new forward movement u lait