Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1904-05-18
SOUND FINANCIAL CONDITIONS.


SOUND FINANCIAL CONDITIONS.
Henry Clews, the veteran New York
bsnker. Ii nothins II no. an Opt, ".
iii his weekly letter to The Optic he
takes a very ~roseatae view of condi.
Itions which many are inclined to view
with alarm. The letter from the Mar.
lquis ito which he submits Is of con-
siderable interest. Mr.. Clews writ
ling under date Of May 18th says:
Large and continued demands upon
.the money market have impaired a
ifrmer tone in that quarter, and also
RESULTED in a corresponding weakness
in securities.
Gold exports broke the record on
Isome days; the total shipped thus far
this season, or since April 8, being
about $42,OoO,0Oo. This sum only part
lIy covers the Panama canal payment,
which Is being made with a view Of
causing as little disturbance as pos.
sible. Other influences acting as an
Important stimulant to gold exports
have been pressure in the Paris money
market, a less favorable trade balance,
the transmission OF Japanese pay.
lments to Europe ri the United
States, and Of course the ease in the
local money market. coupled with the
enormous increase In our home sup.
ply OF gold. More gold is expected TO.
follow, but how much II is impossible
Ito determine. Much Will depend upon
the development Of the above named
Influences. The new local calls for
capital are at present the only factors
that seem likely to arrest the gold
efiux. II these continue higher money
rates will soon check the foreign drain
upon our gold. This week the new
Japanese loan, q large new issue Of
bonds BY New York Central and sew.
eral other important flotations were
announced, which mean q very con-
siderably increased demand upon our
supply Of floating capital. 1t Is quite
evident that this rapid growth Of new
obligations cannot 10 on indefinitely
without depressing the security mar
kets.
Values on the stock exchange reced-
cd during the week, partly because Of
reasons just noted and partly because
OF unfavorable reports concerning the
crops ana the iron and steel industry.
While a considerable loss Of the win.
ter wheat area seems inevitable, 1t is
still much too early to form any idea
or the crop outturn. The chances for
a good harvest are still as numerous
as those for a poor harvest, and al
worst this Is only one of the nncer
ltainties that must be faced. Another
important uncertainty is the election
and though the issues here are not dis
lturbing, still business Initiative will
bio largely deferred until the outcome
s.can be foreseen. Wall street will prob
ably not be able to make up its mind
about these problems until Angus
next, or three months hence. AS fol
the iron trade, conditions are certain
ly unsatisfactory. Production of phi
iron is now running ahead Of consump
ton, and a partial shutdown will b,
imperative unless demand improves
The chief difficulty is that the var
ious pools are holding prices mucf
above buyers abilities and a periot
of dnllness seems inevitable. The cot
ton industry Is also greatly depressed
not so much, however. by oyerpro
duction as by the inability Of manufac
%turers to get prices that will recoul
them for high cost cotton. Curtail
, mentA has been extensively resortet
to. and will probably extend unless
consumers consent 10 pay higher PR
J ces. or holders of cotton accept con
~cessions which they are sturdily resist
ing.
The general situation-fnancial, In
dustrial and commercial-seem'
sound. But the reaction has not beef
equally distributed; the process Of re
adjustment Is still going on, conse
quently business is quiet and initia
tive Is holding back for more settlet
conditions. Declining hank clearing
and smaller railroad earnings tell tn,
same story, showing that the countr!